Company Registration No. 09240437 (England and Wales)
ACRE HOTELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PAGES FOR FILING WITH REGISTRAR
ACRE HOTELS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
ACRE HOTELS LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,407,845
961,946
Current assets
Debtors
4
8,970
66,079
Cash at bank and in hand
-
2,065
8,970
68,144
Creditors: amounts falling due within one year
5
(1,333,669)
(973,428)
Net current liabilities
(1,324,699)
(905,284)
Total assets less current liabilities
83,146
56,662
Capital and reserves
Called up share capital
6
3
3
Profit and loss reserves
83,143
56,659
Total equity
83,146
56,662
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 30 September 2019 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 Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 17 June 2020 and are signed on its behalf by:
K Pankhania
Director
Company Registration No. 09240437
ACRE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
1
Accounting policies
Company information
Acre Hotels Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
1.1
Accounting convention
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
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The company is supported by loans from the directors and companies under common control who have confirmed that such support will continue to be provided in the future.
The
directors therefore consider it appropriate
to adopt the going concern basis of accounting in preparing the financial statements.
As stated in note 7, the directors have considered the effect of the Covid-19 outbreak. The directors consider that the outbreak is likely to cause significant disruption to the company's progress of hotel construction. However, due to the financial support mentioned above the directors are confident that the company can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
1.3
Tangible fixed assets
Tangible fixed assets comprise of a piece of land. The company has obtained planning permission to build a hotel on it for trading.
Freehold land is not depreciated.
1.4
Impairment of fixed assets
Fixed assets are reviewed for impairment annually.
1.5
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
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 balance sheet 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.
ACRE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 3 -
Basic financial assets
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.
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 creditors, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.8
Taxation
The tax expense represents the sum of the tax currently payable
.
Current tax
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.
2
Employees
The company had no employees during the year or previous year.
ACRE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 4 -
3
Tangible fixed assets
Land and buildings
£
Cost
At 1 October 2018
961,946
Additions
445,899
At 30 September 2019
1,407,845
Depreciation and impairment
At 1 October 2018 and 30 September 2019
-
Carrying amount
At 30 September 2019
1,407,845
At 30 September 2018
961,946
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
8,849
66,014
Prepayments and accrued income
121
65
8,970
66,079
5
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank overdrafts
125
-
Trade creditors
13,110
37,155
Corporation tax
6,369
6,216
Other creditors
1,309,020
925,557
Accruals and deferred income
5,045
4,500
1,333,669
973,428
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
3 Ordinary shares of £1 each
3
3
3
3
ACRE HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 5 -
7
Events after the reporting date
The directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in early 2020, on the company's activities. Despite of the planning approval, the directors are putting the hotel construction project on hold until the economy improves.