Company Registration No. SC100227 (Scotland)
M. & K. PROPERTY DEVELOPMENTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2022
PAGES FOR FILING WITH REGISTRAR
M. & K. PROPERTY DEVELOPMENTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
M. & K. PROPERTY DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
290
Investment properties
4
1,175,000
1,175,290
Current assets
Debtors
5
20,950
412
Cash at bank and in hand
1,109,065
58,641
1,130,015
59,053
Creditors: amounts falling due within one year
6
(210,543)
(209,134)
Net current assets/(liabilities)
919,472
(150,081)
Total assets less current liabilities
919,472
1,025,209
Creditors: amounts falling due after more than one year
7
(39,229)
Provisions for liabilities
(5,657)
Net assets
919,472
980,323
Capital and reserves
Called up share capital
209,590
209,590
Fair value reserve
9
269,294
Profit and loss reserves
709,882
501,439
Total equity
919,472
980,323
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 period ended 30 April 2022 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.
The members have not required the company to obtain an audit of its financial statements for the period 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.
M. & K. PROPERTY DEVELOPMENTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2022
30 April 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 26 August 2022 and are signed on its behalf by:
Svend Kamming
Director
Company Registration No. SC100227
M. & K. PROPERTY DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2022
- 3 -
1
Accounting policies
Company information
M. & K. Property Developments Limited is a private company limited by shares incorporated in Scotland. The registered office is 7 Bank Place, Kilmarnock, United Kingdom, KA1 1HJ.
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 amounts 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
On 28 March 2022, M&K Property Developments Limited sold all properties and ceased trading. The directors have resolved to wind up the company in the near future. The directors consider it inappropriate to prepare the financial statements on a going concern basis and therefore the directors have prepared these financial statements on a break-up basis as set out under the basis of preparation
1.3
Turnover
Turnover represents net rental income receivable.
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:
Office equipment
20% on 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 properties whose fair value can be measured reliably are measured at fair value. The surplus or deficit on revaluation is recognised in the profit and loss account. All investment properties were sold on 28 March 2022.
1.6
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
M. & K. PROPERTY DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 4 -
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2021
Number
Number
Total
2
2
M. & K. PROPERTY DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2022
- 5 -
3
Tangible fixed assets
Office equipment
£
Cost
At 1 April 2021
3,038
Disposals
(3,038)
At 30 April 2022
Depreciation and impairment
At 1 April 2021
2,748
Depreciation charged in the period
62
Eliminated in respect of disposals
(2,810)
At 30 April 2022
Carrying amount
At 30 April 2022
At 31 March 2021
290
4
Investment property
2022
£
Fair value
At 1 April 2021
1,175,000
Disposals
(1,175,000)
At 30 April 2022
All properties were sold on 28 March 2022.
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
412
Other debtors
20,950
20,950
412
M. & K. PROPERTY DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2022
- 6 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
6,772
Taxation and social security
17,335
15,114
Other creditors
193,208
187,248
210,543
209,134
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
39,229
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
-
55
Investment property
-
5,602
-
5,657
2022
Movements in the period:
£
Liability at 1 April 2021
5,657
Credit to profit or loss
(5,657)
Liability at 30 April 2022
-
M. & K. PROPERTY DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2022
- 7 -
9
Fair value reserve
2022
2021
£
£
At the beginning of the period
269,294
1,354,808
Transfer to retained earnings
(1,140,000)
Deferred tax on revaluation of investment property
-
54,486
Other movements
(269,294)
-
At the end of the period
-
269,294
The fair value reserve relates to the revaluation of the Company's heritable property.
10
Related party transactions
Included in other creditors due within one year is the sum of £188,600 (2021: £172,075) due to the directors of the company. This amount is interest free and has no terms of repayment.