Company Registration No. 06230183 (England and Wales)
ZAG ESTATES LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
ZAG ESTATES LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
ZAG ESTATES LTD
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
16,750
16,187
Investment properties
4
1,100,463
1,125,000
1,117,213
1,141,187
Current assets
Debtors
6
231,165
298,292
Investments
7
1,952,845
1,654,473
Cash at bank and in hand
64,400
85,320
2,248,410
2,038,085
Creditors: amounts falling due within one year
8
(28,735)
(76,552)
Net current assets
2,219,675
1,961,533
Total assets less current liabilities
3,336,888
3,102,720
Capital and reserves
Called up share capital
9
2,355,568
2,355,568
Share premium account
294,433
294,433
Profit and loss reserves
10
686,887
452,719
Total equity
3,336,888
3,102,720
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 March 2021 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.
ZAG ESTATES LTD
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 August 2021 and are signed on its behalf by:
Mrs Z A Hall
Director
Company Registration No. 06230183
ZAG ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Accounting policies
Company information
ZAG Estates Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Bracklands, Hazel Grove, Hindhead, Surrey, GU26 6BJ.
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 directors have considered the possible effects on the company of the impacts of the worldwide pandemic caused by the coronavirus (Covid-19). The directors have a reasonable expectation that it has adequate resources to continue in operational existence for the forseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.
1.3
Turnover
Turnover is recognised at the fair value of
rental income receivable. The interest, dividend income and capital gains that arise from the investments held are recognised in the profit and loss on the date at which the right to receive payment is established.
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:
Plant and machinery
15% on the reducing balance method
Website
33.33% on the straight line method
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.
Changes in fair value are recognised in profit or loss.
Gains and losses arising from changes in the fair value of the investment property are included in profit and loss for the period in which they arise.
ZAG ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
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.
1.7
Current asset investments
Listed investments are measured at fair value with changes recognised in profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and
other short-term liquid investments with original maturities of three months or less
.
1.9
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
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 profit and loss account, 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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ZAG ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
5
4
3
Tangible fixed assets
Plant and machinery
Website
Total
£
£
£
Cost
At 1 April 2020
68,112
760
68,872
Additions
3,519
3,519
At 31 March 2021
71,631
760
72,391
Depreciation and impairment
At 1 April 2020
51,925
760
52,685
Depreciation charged in the year
2,956
2,956
At 31 March 2021
54,881
760
55,641
Carrying amount
At 31 March 2021
16,750
16,750
At 31 March 2020
16,187
16,187
4
Investment property
2021
£
Fair value
At 1 April 2020
1,125,000
Other changes
(24,537)
At 31 March 2021
1,100,463
Investment property comprises a farmhouse and cottages. The fair value of the investment property held at 31 March 20
21
has been arrived at on the basis of a valuation carried out at 19 September 2018 by Mr M Bunt BSc MRICS FAAV of Kivells Limited, who is not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The valuation of all investment properties was considered by the directors at 31 March 20
21
and they of the opinion that the valuation is reasonable.
ZAG ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
4
Investment property
(Continued)
- 6 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2021
2020
£
£
Cost
821,733
821,733
Accumulated depreciation
-
-
Carrying amount
821,733
821,733
5
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,952,845
1,654,473
6
Debtors: amounts falling due within one year
2021
2020
Other debtors
185,891
262,665
Deferred tax asset
45,274
35,627
231,165
298,292
7
Current asset investments
2021
2020
£
£
Listed investments
1,952,845
1,654,473
Listed investments are ordinary shares measured at fair value through profit and loss based on the quoted market price in an active market. The comparable amount on the historical cost basis would have been £
1,629,584
(20
20
: £1
,792,135
).
8
Creditors: amounts falling due within one year
2021
2020
£
£
Taxation and social security
6,106
2,433
Other creditors
22,629
74,119
28,735
76,552
ZAG ESTATES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
9
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
2,355,568 Ordinary shares of £1 each
2,355,568
2,355,568
2,355,568
2,355,568
10
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
452,719
709,065
Profit/(loss) for the year
234,168
(256,346)
At the end of the year
686,887
452,719
11
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
-
189,675
(76,438)
113,237
189,675
(76,438)
113,237
12
Controlling party
Throughout the year the parent company was Magnitude Holdings Limited, incorporated in the Channel Islands. Its registered office is No. 1 Seaton Place, St Helier, Jersey, Channel Islands. The directors have no connection with Magnitude Holdings Limited.