REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
KERAI PROPERTY INVESTMENTS LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
KERAI PROPERTY INVESTMENTS LIMITED |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
Page |
Company Information | 1 |
Chartered Accountants' Report | 2 |
Balance Sheet | 3 |
Notes to the Financial Statements | 5 |
KERAI PROPERTY INVESTMENTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
BANKERS: |
567 Kingsbury Road |
London |
NW9 9EP |
SOLICITORS: |
Solicitors |
Second Floor |
402 Holloway Road |
London |
N7 6PZ |
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS |
ON THE UNAUDITED FINANCIAL STATEMENTS OF |
KERAI PROPERTY INVESTMENTS LIMITED |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Kerai Property Investments Limited for the year ended 31 March 2022 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of Kerai Property Investments Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Kerai Property Investments Limited and state those matters that we have agreed to state to the Board of Directors of Kerai Property Investments Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Kerai Property Investments Limited and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Kerai Property Investments Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Kerai Property Investments Limited. You consider that Kerai Property Investments Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Kerai Property Investments Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Chartered Accountants |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
BALANCE SHEET |
31 MARCH 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment property | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 7 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Retained earnings | 12 |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
BALANCE SHEET - continued |
31 MARCH 2022 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
1. | STATUTORY INFORMATION |
Kerai Property Investments Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue recognition |
Revenue from commercial and residential property is recognised on a rent receivable basis to the balance sheet date. |
Government grants |
Grants provided by the government in respect of Covid-19 are recognised in the accounting period in which they are received, under accrual model. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. |
Subsequent to initial recognition: |
investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Interest receivable and interest payable |
Interest receivable and interest payable are recognised in profit or loss as they accrue, using the effective interest method. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2021 - NIL). |
4. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2021 |
Additions |
Revaluations | 433,150 |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
4. | INVESTMENT PROPERTY - continued |
Fair value at 31 March 2022 is represented by: |
£ |
Valuation in 2009 | 103,551 |
Valuation in 2011 | 345,000 |
Valuation in 2012 | 83,419 |
Valuation in 2014 | 290,000 |
Valuation in 2015 | 231,119 |
Valuation in 2016 | 255,167 |
Valuation in 2017 | 350,000 |
Valuation in 2018 | (461,632 | ) |
Valuation in 2021 | 899,716 |
Valuation in 2022 | 433,150 |
Cost | 4,175,510 |
6,705,000 |
The valuations for the investment properties for the year ending 31 March 2022 were updated by the directors based on advice from their property agent and their knowledge of the local property and rental markets. |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by connected company | 180,000 | 89,728 |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 8) |
Amounts owed to connected company | - | 786,180 |
Tax |
Accrued expenses |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 8) |
Other loans (see note 8) |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
2022 | 2021 |
£ | £ |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Bank loans more 5 yrs non-inst |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 2,500 |
8. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Other loans | 1,234,916 | 1,486,634 |
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Bank loans more 5 yrs non-inst | 2,005,732 | 2,005,732 |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 2,500 |
The company had an agreement with National Westminster Bank plc related to bounce back loan of £50,000. The loan term is 5 years. The interest rate is fixed at 2.5 per cent per annum. The loan is 100% guaranteed by HM Government and 12 months of interest paid by HM Government. |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans | 2,005,732 | 2,005,732 |
The bank loans are secured by a fixed charge over the buy to let properties. The loans are repayable between 15 to 18 years from the year end and are subject to interest rate ranging from 0.39% to 2.95% per annum above the Bank Base Rate. |
10. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 225,299 | 168,797 |
Deferred |
tax |
£ |
Balance at 1 April 2021 |
Movement | 56,502 |
Balance at 31 March 2022 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 100,000 |
12. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2021 |
Profit for the year |
At 31 March 2022 |
Retained earnings is made of undistributable profit and loss reserves of £2,084,518 (2021: £1,707,870). |
KERAI PROPERTY INVESTMENTS LIMITED (REGISTERED NUMBER: 05112316) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
13. | RELATED PARTY DISCLOSURES |
During the year, the company received rent of £1,000 (2021: £8,000) from Regal Asset Managers Ltd, for the use of the premises owned by the company. |
At the year end, the company owed £NIL (2021: £701,980) to Regal Asset Managers Limited, a company in which Mr R B Kerai has a beneficial interest. The amount owed is payable on demand. |
At the year end, the company owed £NIL (2021: £84,200) to RAM financial Options Limited, a company in which Mr R B Kerai has a beneficial interest. The amount owed is payable on demand. |
At the year end, the company is owed £180,000 (2021: £89,727) by Residential Properties Funds Limited, a company in which Mr R B Kerai has a beneficial interest. The amount is receivable on demand. |
At the year end, the company owed £1,234,916 (2021: £1,436,634) to the director, Mr R B Kerai. |