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COMPANY REGISTRATION NUMBER: 0443053
Erivan Holdings Limited
Filleted unaudited financial statements
31 December 2021
Erivan Holdings Limited
Statement of financial position
31 December 2021
2021
2020
Note
£
£
£
£
Fixed assets
Tangible assets
5
4,529,910
4,249,694
Investments
6
2,981
2,981
-----------
-----------
4,532,891
4,252,675
Current assets
Debtors
7
344,265
343,082
Cash at bank and in hand
91,557
81,409
---------
---------
435,822
424,491
Creditors: amounts falling due within one year
8
269,487
235,946
---------
---------
Net current assets
166,335
188,545
-----------
-----------
Total assets less current liabilities
4,699,226
4,441,220
Creditors: amounts falling due after more than one year
9
352,085
440,762
Provisions
452,300
299,000
-----------
-----------
Net assets
3,894,841
3,701,458
-----------
-----------
Capital and reserves
Called up share capital
100
100
Fair value reserve
2,389,413
2,292,713
Profit and loss account
1,505,328
1,408,645
-----------
-----------
Shareholders funds
3,894,841
3,701,458
-----------
-----------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31st December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Erivan Holdings Limited
Statement of financial position (continued)
31 December 2021
These financial statements were approved by the board of directors and authorised for issue on 12 August 2022 , and are signed on behalf of the board by:
Mr S N Clark
Director
Company registration number: 0443053
Erivan Holdings Limited
Notes to the financial statements
year ended 31st December 2021
1. General information
The principal activity of the company is that of commercial property letting and investment . The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Furrows, Cattal Street,Cattal, York, North Yorkshire, YO26 8DW.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors, having made due and careful enquiry, are of the opinion that the company has sufficient working capital to execute its operations over the next 12 months. The directors have made an informed judgement at the time of approving the financial statements that the company has adequate resources to continue in operational existence for the foreseeable future. Having regard to the above, the directors believe it appropriate to adopt the going concern basis in preparing the financial statements.
Consolidation
The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the statement of financial position and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.
Revenue recognition
Turnover comprises the value of rentals receivable, stated net of discounts and Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, except that: - deferred tax is not recognised on timing differences arising on revalued properties unless the company has entered into a binding sale agreement and is not proposing to take advantage of rollover relief; and - the recognition of deferred tax assets is limited to the extent that the company anticipates making sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. Deferred tax balances are not discounted.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. Investment property Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
15% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship (see hedge accounting policy). Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 3 (2020: 4 ).
5. Tangible assets
Plant and machinery
Investment property
Total
£
£
£
Cost or valuation
At 1st January 2021
20,584
4,240,000
4,260,584
Additions
33,471
33,471
Revaluations
250,000
250,000
-------
-----------
-----------
At 31st December 2021
54,055
4,490,000
4,544,055
-------
-----------
-----------
Depreciation
At 1st January 2021
10,890
10,890
Charge for the year
3,255
3,255
-------
-----------
-----------
At 31st December 2021
14,145
14,145
-------
-----------
-----------
Carrying amount
At 31st December 2021
39,910
4,490,000
4,529,910
-------
-----------
-----------
At 31st December 2020
9,694
4,240,000
4,249,694
-------
-----------
-----------
The investment property at 31 December 2021 is a directors valuation totalling £4,490,000 (2020 £4,240,000) being revaluation of £2,841,713 (2020 £2,591,713) and cost of £1,648,287 (2020 £1,648,287). The directors have reviewed the valuation of the investment property and have concluded that the valuation reflects the current market value. A deferred tax provision of £452,300 (2020 £299,000) has been recognised in respect of the revaluation.
6. Investments
Shares in group undertakings
Unlisted investments
Total
£
£
£
Cost
At 1st January 2021 and 31st December 2021
1
2,980
2,981
----
------
------
Impairment
At 1st January 2021 and 31st December 2021
----
------
------
Carrying amount
At 31st December 2021
1
2,980
2,981
----
------
------
At 31st December 2020
1
2,980
2,981
----
------
------
Under the provision of section 398 of the Companies Act 2006 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.
7. Debtors
2021
2020
£
£
Trade debtors
25,958
19,513
Other debtors
318,307
323,569
---------
---------
344,265
343,082
---------
---------
8. Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
104,998
38,307
Trade creditors
9,169
29,898
Accruals and deferred income
75,628
76,308
Corporation tax
37,700
35,000
Social security and other taxes
8,600
32,238
Obligations under finance leases and hire purchase contracts
8,903
Other creditors
24,489
24,195
---------
---------
269,487
235,946
---------
---------
The bank loans are secured by way of a legal charge over the freehold investment property of the company.
9. Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
335,763
440,762
Obligations under finance leases and hire purchase contracts
16,322
---------
---------
352,085
440,762
---------
---------
The bank loans are secured by way of a legal charge over the freehold investment property of the company.
10. Directors' advances, credits and guarantees
The balance owed by the directors at the year end amounted to £206,053 (2020: £255,919).
The loan is interest free and repayable on demand.