Wise Zone Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Crowe U.K. LLP, 3rd Floor, The Lexicon, Mount Street, Manchester, M2 5NT.
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 convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. Loans from a third party have been arranged by the directors to assist in the company's business activities to date. Further support is to be provided by the directors as and when is required for the foreseeable future.
The prior period accounts were presented from the date of incorporation to the period ended 31 October 2017, reflecting a 390 day period. Therefore, comparative amounts will not be entirely comparable.
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 paymen ts 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. A m ounts 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.
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 2).
Fixed asset investments consist of shares held in the subsidiary detailed in note 4.
Details of the company's subsidiaries at 31 October 2018 are as follows:
The profit or loss for the year and aggregate share capital/reserves for Plymouth Grove Property Developments Limited have not been disclosed as the company was incorporated on 8 November 2017. The company is registered in the United Kingdom and the first accounts will be made up to 30 April 2019.
During the year, the company purchased a property on behalf of Plymouth Grove Property Developments Limited resulting in a balance owed to the company at 31 October 2018 of £2,524,198 and is included within debtors due within one year.
There is no interest payable on this balance and the loans are unsecured loans with no fixed repayment dates.
During the year, the company received loans from Insighttex Trading Limited resulting in a balance owed by the company at 31 October 2018 of £2,683,407 and is included within creditors due within one year. This balance includes interest payable totalling £133,407 which has been charged at an annual rate of 4%.
It has been agreed between both parties that the length of the loan must not exceed 10 years, however Insighttex Trading Limited reserve the right to call for repayment of the loans on demand by providing 1 months' notice. The loans are otherwise unsecured loans with no fixed repayment dates.
T he company has taken advantage of the exemption available under FRS 102 not to disclose transactions between itself and its subsidiary company, Plymouth Grove Property Developments Ltd .
During the period, the company operated a loan account with director Mrs M Li. At the balance sheet date, the company owed Mrs M Li £901, this is included within other creditors.
This loan is repayable on demand and no interest was charged during the period.