Company Registration No. 01830742 (England and Wales)
BARROWFEN PROPERTIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
BARROWFEN PROPERTIES LIMITED
COMPANY INFORMATION
Directors
Mr S Patel
Mr P R Patel
Company number
01830742
Registered office
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
Auditor
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
BARROWFEN PROPERTIES LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 17
BARROWFEN PROPERTIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of property investment and development of property into commercial and residential units.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Patel
Mr P R Patel
Auditor
A resolution proposing that John Cumming Ross Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
(a) So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware and
(b) they have have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
BARROWFEN PROPERTIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
On behalf of the board
Mr P R Patel
Director
26 September 2023
BARROWFEN PROPERTIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARROWFEN PROPERTIES LIMITED
- 3 -
Opinion
We have audited the financial statements of Barrowfen Properties Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The accompanying financial statements have been prepared based on the comfort that the parent undertaking will continue to financially support the company which will allow the company to continue as a going concern as it focus on long term growth and profitability in an often highly volatile sector.
As discussed in note 1.2 to the financial statements, the company has returned to profitability after suffering recurring losses from operations over the years. The directors believe the parent company will continue to support the company as described in note 1.2 of the notes to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
BARROWFEN PROPERTIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARROWFEN PROPERTIES LIMITED
- 4 -
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
BARROWFEN PROPERTIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARROWFEN PROPERTIES LIMITED
- 5 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions were held with the directors with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The outcome of these discussions and enquiries were shared with the engagement team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Those laws and regulations considered to have a direct effect on the day to day operations of the company include General Data Protection Regulation (GDPR)
It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims;inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the year end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud may be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
BARROWFEN PROPERTIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARROWFEN PROPERTIES LIMITED
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members , as a body, for our audit work, for this report, or for the opinions we have formed.
Balvantkumar B Patel (Senior Statutory Auditor)
For and on behalf of John Cumming Ross Limited
Chartered Certified Accountants and Statutory Auditors
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
26 September 2023
BARROWFEN PROPERTIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Administrative expenses
(1,837,237)
(2,025,560)
Other operating income
3,080,253
13,761
Operating profit/(loss)
3
1,243,016
(2,011,799)
Interest receivable and similar income
6
22,244
Interest payable and similar expenses
7
(332,005)
(37,184)
Profit/(loss) before taxation
933,255
(2,048,983)
Tax on profit/(loss)
8
11,171,480
377,006
Profit/(loss) for the financial year
12,104,735
(1,671,977)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BARROWFEN PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
26,960,386
26,831,494
Investment properties
10
16,829,597
7,600,000
43,789,983
34,431,494
Current assets
Debtors
11
13,229,969
1,000,615
Cash at bank and in hand
512,254
943,627
13,742,223
1,944,242
Creditors: amounts falling due within one year
12
(25,405,246)
(23,820,054)
Net current liabilities
(11,663,023)
(21,875,812)
Total assets less current liabilities
32,126,960
12,555,682
Provisions for liabilities
Deferred tax liability
14
811,330
811,328
(811,330)
(811,328)
Net assets
31,315,630
11,744,354
Capital and reserves
Called up share capital
15
3,103,950
3,103,950
Share premium account
16
8,826,567
8,826,567
Capital redemption reserve
18
37,500
37,500
Other reserves
17
12,735,361
5,268,820
Profit and loss reserves
19
6,612,252
(5,492,483)
Total equity
31,315,630
11,744,354
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 September 2023 and are signed on its behalf by:
Mr P R Patel
Director
Company Registration No. 01830742
BARROWFEN PROPERTIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2021
3,002,500
8,542,500
37,500
5,268,820
(3,820,506)
13,030,814
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
-
-
(1,671,977)
(1,671,977)
Issue of share capital
15
284,067
-
-
-
284,067
Conversion of loan to shares
15
101,450
-
-
-
101,450
Balance at 31 December 2021
3,103,950
8,826,567
37,500
5,268,820
(5,492,483)
11,744,354
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
12,104,735
12,104,735
Other movements
-
-
7,466,541
-
7,466,541
Balance at 31 December 2022
3,103,950
8,826,567
37,500
12,735,361
6,612,252
31,315,630
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information
Barrowfen Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Kirkland House, 11-15 Peterborough Road, Harrow, Middlesex, HA1 2AX.
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Asian Agri Investments Ltd. The consolidated financial statements are available from its registered office at Lot 1, 2nd Floor, Wisma Siamloh,Jalan Kemajuan 87007,Fedreal Territory of Labuan Malaysia.
1.2
Going concern
The financial statements are prepared on the going concern basis as Asian Agri Investments Ltd, the immediate parent undertaking, has agreed to provide financial support to the company such that it can continue to trade and meet its liabilities as and when they fall due. This support will continue for a period of at least 12 months from the date of approval of these financial statements.
The company has returned to profitability after suffering recurring losses from operations during the construction and development of the freehold land and property. The work was financed by capital provided by its parent company and a loan from the bank.
At the time of approving the financial statements, the company has positive net assets of £31,315,630 in its balance sheet. There is encouraging sign from the rental sector after Covid-19 pandemic. The market is starting to recover since the easing of restrictions and businesses open up and people are returning to work. The market, however, remain competitive and hinges on the macro environment, the state of the economy, and lasting effects on the Ukraine conflict.
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
1.3
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.
Fixtures, fittings and equipment
10% Straight line basis
Assets in the course of construction are not depreciated.
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.
1.4
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 at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.5
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties.
Financial liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to 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.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transactions, where the debt instruments is measured at the present value of the future payments discounted at market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.
1.6
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.
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
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.
1.7
Leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit/(loss)
2022
2021
Operating profit/(loss) for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
7,204
4
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
134,625
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administration
2
2
Their aggregate remuneration comprised:
2022
2021
£
£
Directors' fees
134,625
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
22,244
7
Interest payable and similar expenses
2022
2021
£
£
Other interest on financial liabilities
319,407
37,184
Other interest
12,598
332,005
37,184
8
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
(11,171,480)
(377,006)
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Taxation
(Continued)
- 14 -
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit/(loss) before taxation
933,255
(2,048,983)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
177,318
(389,307)
Tax effect of expenses that are not deductible in determining taxable profit
6,335
6,782
Depreciation on assets not qualifying for tax allowances
7,204
Deferred tax on losses
(11,362,337)
5,519
Taxation credit for the year
(11,171,480)
(377,006)
9
Tangible fixed assets
Assets under construction
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 January 2022
26,831,494
26,831,494
Additions
136,096
136,096
At 31 December 2022
26,831,494
136,096
26,967,590
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
7,204
7,204
At 31 December 2022
7,204
7,204
Carrying amount
At 31 December 2022
26,831,494
128,892
26,960,386
At 31 December 2021
26,831,494
26,831,494
Included within cost of construction is capitalised interest of £693,987 (2021: £693,987)
The company incurred expenses £1,763,055 (31 December 2021: £5,143,683) for a new development at 180-214 Upper Tooting Road London. The building development work was completed as at 31 December 2022 and cost of development incurred during the year under construction was included as building cost.
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
10
Investment property
2022
£
Fair value
At 1 January 2022
7,600,000
Transfers
9,229,597
At 31 December 2022
16,829,597
In the opinion of the directors, the fair value of the investment property has been arrived on the basis of a valuation carried out at 31 December 2022 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
1,113,281
27,180
Prepayments and accrued income
50,977
79,206
1,164,258
106,386
Deferred tax asset (note 14)
12,065,711
894,229
13,229,969
1,000,615
12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
21,246,209
20,887,251
Trade creditors
749,414
447,904
Taxation and social security
3,430
Other creditors
3,167,823
2,474,794
Accruals and deferred income
241,800
6,675
25,405,246
23,820,054
Loans from Barclays bank are secured by way of floating and fixed charge over the assets of the company. The development facility interest is chargeable at 3.6% plus Libor rate .
13
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
14
811,330
811,328
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Tax losses
-
-
12,065,711
894,229
Investment property-fair value adjustment
811,330
811,328
-
-
811,330
811,328
12,065,711
894,229
2022
Movements in the year:
£
Asset at 1 January 2022
(82,901)
Credit to profit or loss
(11,171,480)
Asset at 31 December 2022
(11,254,381)
15
Share capital
31 December
31 March
2022
2021
£
£
Ordinary share capital
Issued and fully paid
3,002,500 Ordinary shares of £1 each
3,103,950
3,103,950
3,103,950
3,103,950
As at 31 December 2021,101,450 ordinary shares of £1 each were issued at premium of £2.80 to Asian Agri Investments Ltd. The increase in share capital is to provide sufficient resources to development work of the company.
16
Share premium account
2022
2021
£
£
At the beginning of the year
8,826,567
8,542,500
Issue of new shares
284,067
At the end of the year
8,826,567
8,826,567
BARROWFEN PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
17
Other reserves-Non Distributable
£
Balance at 1 January 2021
5,268,820
Balance at 31 December 2021
5,268,820
Other movements-effects of tax rate
7,466,541
Balance at 31 December 2022
12,735,361
18
Capital redemption reserve
2022
2021
£
£
At the beginning and end of the year
37,500
37,500
19
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
(5,492,483)
(3,820,506)
Profit/(loss) for the year
12,104,735
(1,671,977)
At the end of the year
6,612,252
(5,492,483)
20
Related party transactions
Asian Agri Investment Limited,a parent undertaking in which Mr Prashant Patel is a director provided a letter of credit to Barclays bank for a contingent liability of £1,000,000 and charged a fee of 1.75% per annum for the period from 20 October 2019 to 31 December 2022.
At balance sheet date £nil (31 December 2021: £474,016) due to Mr Parshant Patel, the director of the company.
At the year end, an amount of £845,724 (2021: £Nil) is due to Atlip House Limited, companies with common directors. Interest is charged at a rate of Sonia + 4% on the loan. During the year, interest charges payable £Nil as the loan was agreed on 31 December 2022.
The bank loan (Development facility) from Barclays Bank is guaranteed £12,500,000 by Atlip House Limited, a subsidiary company of Asian Agri Investments Ltd. A collateral fee of 1.75% charged for the period from 20 December 2019 to 31 December 2022.
21
Ultimate controlling party
The company's parent undertaking at balance sheet date was Asian Agri Investments Limited, a company registered in Labuan,Malaysia.
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