Company Registration No. 00392990 (England and Wales)
ELCOT SERVICE FLATS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2018
PAGES FOR FILING WITH REGISTRAR
ELCOT SERVICE FLATS LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
ELCOT SERVICE FLATS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2018
31 March 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
24,542
28,874
Investment properties
4
5,750,000
5,750,000
5,774,542
5,778,874
Current assets
Debtors
5
5,992
4,923
Creditors: amounts falling due within one year
6
(712,070)
(715,333)
Net current liabilities
(706,078)
(710,410)
Total assets less current liabilities
5,068,464
5,068,464
Creditors: amounts falling due after more than one year
7
(2,000)
(2,000)
Provisions for liabilities
Deferred tax liability
698,000
709,000
(698,000)
(709,000)
Net assets
4,368,464
4,357,464
Capital and reserves
Called up share capital
8
8,000
8,000
Other reserves
1,593
1,593
Non-distributable profits reserve
4,358,871
4,347,871
Total equity
4,368,464
4,357,464
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 March 2018 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.
ELCOT SERVICE FLATS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 MARCH 2018
31 March 2018
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 December 2018 and are signed on its behalf by:
Mrs J.R. Bekhor
Director
Company Registration No. 00392990
ELCOT SERVICE FLATS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2018
- 3 -
Share capital
Other reserves
Non-distri-butable profits
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2016
8,000
1,593
4,299,671
(3,259)
4,306,005
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
-
48,200
3,259
51,459
Balance at 31 March 2017
8,000
1,593
4,347,871
-
4,357,464
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
11,000
-
11,000
Balance at 31 March 2018
8,000
1,593
4,358,871
-
4,368,464
ELCOT SERVICE FLATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2018
- 4 -
1
Accounting policies
Company information
Elcot Service Flats Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
York House, Empire Way, Wembley, Middlesex, HA9 0FQ.
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 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.
1.2
Going concern
The financial statements have been prepared on a going concern basis as support has been arranged from the company's shareholders to enable the company to pay its debts as they fall due.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
accommodation
and services provided in the normal course of business
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
ELCOT SERVICE FLATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 5 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use
.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply.
1.7
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 statement of financial position 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.
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 and loans from
fellow group companies are
initially recognised at transaction price
. Financial liabilities classified as payable within one year are not amortised.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ELCOT SERVICE FLATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2017 - 3).
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2017 and 31 March 2018
162,411
Depreciation and impairment
At 1 April 2017
133,538
Depreciation charged in the year
4,331
At 31 March 2018
137,869
Carrying amount
At 31 March 2018
24,542
At 31 March 2017
28,874
ELCOT SERVICE FLATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 7 -
4
Investment property
2018
£
Fair value
At 1 April 2017 and 31 March 2018
5,750,000
Investment property comprises property held for rental. The investment property has been valued by the directors at the year end on a open market value basis.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2018
2017
£
£
Cost
693,129
693,129
Accumulated depreciation
-
-
Carrying amount
693,129
693,129
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Other debtors
5,992
4,923
6
Creditors: amounts falling due within one year
2018
2017
£
£
Amounts owed to group undertakings
8,772
63,797
Corporation tax
12,768
13,736
Other creditors
690,530
637,800
712,070
715,333
ELCOT SERVICE FLATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2018
- 8 -
7
Creditors: amounts falling due after more than one year
2018
2017
£
£
Other borrowings
2,000
2,000
Other borrowings comprises 2,000 deferred ordinary shares of £1 each which are classified as financial liabilities. They are entitled to a payment of the lower of a fixed preference dividend of £250 per share or the amount of the company's profit available for distribution. On a winding up of the company these shareholders will be entitled only to a return of capital and will receive this amount in preference to any payment to the holders of the ordinary shares.
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
8,000 Ordinary shares of £1 each
8,000
8,000
8,000
8,000