|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2017 |
|
FOR |
|
CASPAN LIMITED |
DRAFT |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2017 |
|
FOR |
|
CASPAN LIMITED |
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 July 2017 |
|
DRAFT |
|
|
|
|
|
|
|
|
|
Page |
|
Company Information | 1 |
|
Statement of Financial Position | 2 |
|
Notes to the Financial Statements | 3 |
|
CASPAN LIMITED |
|
COMPANY INFORMATION |
for the year ended 31 July 2017 |
|
|
|
|
|
|
|
DRAFT |
DIRECTORS: |
|
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Chartered Accountants & |
Statutory Auditors |
4th Floor |
Venture House |
27-29 Glasshouse Street |
London |
W1B 5DF |
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
STATEMENT OF FINANCIAL POSITION |
31 July 2017 |
|
2017 | 2016 |
Notes | £ | £ | £ | £ |
DRAFT |
FIXED ASSETS |
Investment property | 4 |
|
|
|
CURRENT ASSETS |
Debtors | 5 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 6 |
|
|
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
7 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital |
|
|
Retained earnings | 11 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
|
|
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
|
The financial statements were approved by the Board of Directors on
|
|
|
|
|
|
|
|
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 July 2017 |
|
DRAFT |
|
1. | STATUTORY INFORMATION |
|
Caspan Limited is a
|
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 |
|
|
|
3. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
The financial statements have been prepared under the historical cost convention and in accordance with |
applicable UK Financial Reporting Standards. |
|
As described in the financial statements the company has total net current liabilities of £1,195,473. These net |
current liabilities include loan notes due to the shareholders of £1,472,697 and a bank loan due for repayment of |
£95,700. Accordingly the company is dependant upon the continued support of its shareholders in order to meet |
its day to day working capital requirements. |
|
The shareholders of Caspan Limited have confirmed to the Directors of Caspan Limited that they will not |
withdraw the shareholder funding loans per the Shareholder Agreement to the detriment of the company. This |
will enable the company to continue as a going concern. The Directors are satisfied that the Company has access |
to sufficient working capital funding. |
|
If the company were unable to continue in operational existence for the foreseeable future, adjustments would |
have to be made to reduce the balance sheet values of assets to their recoverable amounts, and to provide for |
further liabilities that might arise, and to reclassify fixed assets and long-term liabilities as current assets and |
liabilities. |
|
First year adoption of Financial Reporting Standard 102 ( FRS 102) Section 1A |
These financial statements for the year ended 31 July 2017 are the first that are prepared in accordance with FRS |
102 Section 1A. The previous financial statements were prepared in accordance with UK GAAP, the date of |
transition to FRS 102 Section 1A is 1 August 2015. |
|
Some of the FRS 102 recognition, measurement, presentation and disclosure requirements and accounting policy |
choices differ from previous UK GAAP. Consequently, the directors have amended certain accounting policies |
to comply with FRS 102. The directors have also taken advantage of certain exemptions from the requirements |
of FRS 102 permitted by FRS 102 Chapter 35 'Transition to this FRS'. |
|
Comparative figures have been restated to reflect the adjustments made, except to the extent that the directors |
have taken advantage of exemptions to retrospective application of FRS 102 permitted by FRS 102 Chapter 35 |
'Transition to this FRS'. Adjustments are recognised directly in equity within the cumulative profit and loss |
account at the transition date. |
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2017 |
|
|
3. | ACCOUNTING POLICIES - continued |
DRAFT |
|
Revenue recognition |
Turnover consists of gross rental income calculated on an accruals basis and excluding value added tax. Where a |
rent-free period is included in a lease, the rental income foregone is allocated evenly over the period from the |
date of the lease commencement to the lease end date. |
|
Contingent rents, being those lease payments that are not fixed at the inception of a lease, for example increases |
arising on rent reviews are recorded as income in the periods in which they are earned. |
|
Investment property |
Investment property is accounted for in accordance with Section 16 and is included at fair value. All fair value |
gains and losses are recognised in the income statement. |
|
Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. |
|
Financial instruments |
Basic financial assets |
|
Trade and other debtors, cash and bank balances are initially recognised at transaction price and subsequently |
carried at amortised cost using the effective interest method. |
|
At the end of each reporting period basic financial assets measured at amortised cost are assessed for objective |
evidence of impairment. 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 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. |
|
Basic financial assets are derecognised when (a) the contractual rights to the cash flows from the assets expire or |
are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another |
party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing |
additional restrictions. |
|
Basic financial liabilities |
|
Trade and other creditors, bank loans and overdrafts, amounts due to related parties and accruals are initially |
recognised at transaction price and subsequently carried at amortised cost, using the effective interest rate |
method. |
|
Basic financial liabilities are derecognised when the contractual obligation is discharged, cancelled or expired. |
|
Equity instruments |
|
The ordinary share capital of the company is classified as equity and recorded at fair value of the cash or other |
resources received or receivable, net of direct costs of issuing the equity instruments. |
|
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2017 |
|
|
3. | ACCOUNTING POLICIES - continued |
DRAFT |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
|
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with an |
original maturity date of three months or less. |
|
4. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 August 2016 |
|
Revaluation | 2,900,000 |
At 31 July 2017 |
|
NET BOOK VALUE |
At 31 July 2017 |
|
At 31 July 2016 |
|
|
Fair value at 31 July 2017 is represented by: |
|
£ |
Valuation in 2015 | 3,581,145 |
Valuation in 2017 | 2,900,000 |
Cost | 7,518,855 |
14,000,000 |
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2017 |
|
|
4. | INVESTMENT PROPERTY - continued |
DRAFT |
|
If Investment Property had not been revalued it would have been included at the following historical cost: |
|
2017 | 2016 |
£ | £ |
Cost | 7,518,855 | 7,518,855 |
|
Investment Property was valued on an open market basis on 29 October 2014 by Knight Frank . |
|
The value of the investment property at 31 July 2017 is £14,000,000 and this is based on the directors |
assessment of the fair value of the investment property as at that date. |
|
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Other debtors |
|
|
VAT |
|
|
Called up share capital not paid |
|
|
|
|
|
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Bank loans and overdrafts |
|
|
Trade creditors |
|
|
Other creditors |
|
|
Amounts due to related parties | 1,472,697 | 1,472,697 |
Accruals and deferred income |
|
|
|
|
|
The amounts due to related parties are interest free and repayable on demand. |
|
7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2017 | 2016 |
£ | £ |
Bank loans - 1-2 years |
|
|
Bank loans - 2-5 years |
|
|
|
|
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2017 |
|
DRAFT |
|
8. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2017 | 2016 |
£ | £ |
Bank loans |
|
|
|
The bank loan is secured by fixed and floating charges over the company's assets and undertakings and a first |
and only charge over the company's freehold property in Stroud. |
|
9. | FINANCIAL INSTRUMENTS |
|
The company has the following financial instruments: |
Note | 2017 | 2016 |
£ | £ |
|
- Other debtors | 6 | 7,231 | 100 |
7,231 | 100 |
|
Financial liabilities measured at amortised cost |
- Bank loans and overdrafts | 9 | 5,584,675 | 5,680,375 |
- Trade creditors | 7 | 50,625 | 50,625 |
- Other creditors | 7 | 95,050 | 176,231 |
- Amounts due to related parties | 7 | 1,472,697 | 1,472,697 |
- Accruals | 7 | 6,000 | 8,520 |
7,209,047 | 7,388,448 |
|
|
10. | PROVISIONS FOR LIABILITIES |
2017 | 2016 |
£ | £ |
Deferred tax |
Tax losses | (47,000 | ) | (39,625 | ) |
Revaluation of investment property | 1,117,000 | 652,000 |
1,070,000 | 612,375 |
|
Deferred |
tax |
£ |
Balance at 1 August 2016 |
|
Charge to Statement of Comprehensive Income during year |
|
Balance at 31 July 2017 |
|
CASPAN LIMITED (REGISTERED NUMBER: 08139384) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 July 2017 |
|
DRAFT |
|
11. | RESERVES |
|
Within retained earnings, there is an amount of £5,364,145 in relation to the revaluation surplus on the |
company's investment property net of deferred tax provision. This amount does not form part of the company's |
distributable reserves. |
|
12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
|
The Report of the Auditors was unqualified. |
|
|
for and on behalf of
|
|
13. | RELATED PARTY DISCLOSURES |
|
The directors consider the material transactions undertaken by the company during the period with related parties |
were as follows; |
|
Zedan Limited |
Zedan Limited, a 45% shareholder of the company lent £2,000,000 to the company in 2013. A balance of |
£950,000 remains outstanding at 31 July 2017 and is interest free and repayable on demand. |
|
Mrs M Oberoi |
Mrs M Oberoi, a director and shareholder of the company, lent £782,697 to the company during 2013. As at 31 |
July 2017 the amount outstanding was £522,697 and is interest free and repayable on demand. |
|
14. | IMMEDIATE AND ULTIMATE CONTROLLING PARTY |
|
The company has no immediate parent company but as a result of their 45% direct holding and a further 45% |
indirect holding, the company's ultimate controlling parties are Mr A Oberoi and Mrs M Oberoi. |
|
15. | FIRST YEAR ADOPTION |
|
Transitional relief |
On transition to FRS 102, the company has taken advantage of the following transitional relief: |
|
• | to use a previous GAAP revaluation as deemed cost on an investment property. |