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Company registration number: 12836290
Echo Capital Investments Ltd
Unaudited filleted financial statements
31 January 2023
Echo Capital Investments Ltd
Contents
Statement of financial position
Notes to the financial statements
Echo Capital Investments Ltd
Statement of financial position
31 January 2023
31/01/23 31/01/22
Note £ £ £ £
Fixed assets
Tangible assets 5 3,401,238 2,433,150
_______ _______
3,401,238 2,433,150
Current assets
Debtors 6 59,323 31,780
Cash at bank and in hand 9,228 5,138
_______ _______
68,551 36,918
Creditors: amounts falling due
within one year 7 ( 251,684) ( 586,883)
_______ _______
Net current liabilities ( 183,133) ( 549,965)
_______ _______
Total assets less current liabilities 3,218,105 1,883,185
Creditors: amounts falling due
after more than one year 8 ( 2,194,783) ( 1,831,614)
Provisions for liabilities ( 176,917) -
_______ _______
Net assets 846,405 51,571
_______ _______
Capital and reserves
Called up share capital 1,000 1,000
Fair value reserve 769,094 -
Profit and loss account 76,311 50,571
_______ _______
Shareholders funds 846,405 51,571
_______ _______
For the year ending 31 January 2023 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.
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.
These financial statements were approved by the board of directors and authorised for issue on 19 October 2023 , and are signed on behalf of the board by:
Rakesh Nanji Kishan Naran Nanji
Director Director
Company registration number: 12836290
Echo Capital Investments Ltd
Notes to the financial statements
Year ended 31 January 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3rd Floor Scottish Provident House, 76-80 College Road, Harrow, Middlesex, HA1 1BQ. The principal activity of the company is property development and lettings of own properties.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006.
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 believe that the company is earning good levels of income and with future funding it is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents receivable for rents, stated net of Value Added Tax. Turnover excludes service charges which are offset against relevant expenditure.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Investment properties
Investment properties, being properties held to earn rentals or for capital appreciation or both, is measured initially at cost, which includes purchase price and any directly attributable expenditure.Investment properties are revalued to their fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company 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. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 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.
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 or 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.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 2 (2022: 2 ).
This represents the directors.
5. Tangible assets
Freehold properties Total
£ £
Cost or valuation
At 1 February 2022 2,433,150 2,433,150
Additions 22,078 22,078
Fair value adjustment 946,010 946,010
_______ _______
At 31 January 2023 3,401,238 3,401,238
_______ _______
Depreciation
At 1 February 2022 and 31 January 2023 - -
_______ _______
Carrying amount
At 31 January 2023 3,401,238 3,401,238
_______ _______
At 31 January 2022 2,433,150 2,433,150
_______ _______
Investment properties
Included within the above are investment properties measured at fair value as follows:
£
At 1 February 2022 2,433,150
Additions 22,078
Fair value adjustments 946,010
_______
At 31 January 2023 3,401,238
_______
The investment properties were revalued by the directors having regard to similar properties in the area and current market values. In their opinion, where there is significant difference between cost and fair values at 31 January 2023, these values have been incorporated in the financial statements.
6. Debtors
31/01/23 31/01/22
£ £
Trade debtors 17,700 4,973
Other debtors 41,623 26,807
_______ _______
59,323 31,780
_______ _______
7. Creditors: amounts falling due within one year
31/01/23 31/01/22
£ £
Bank loan (note 8 ) 14,085 39,000
Trade creditors 103,679 242,125
Social security and other taxes 9,304 -
Other creditors 124,616 305,758
_______ _______
251,684 586,883
_______ _______
8. Creditors: amounts falling due after more than one year
31/01/23 31/01/22
£ £
Bank loans and overdrafts 1,537,343 805,174
Amounts owed to connected company 413,500 398,500
Other creditors 243,940 627,940
_______ _______
2,194,783 1,831,614
_______ _______
The bank loan is secured on the investment properties and other assets of the company.
Other creditors represent shareholders' loans which are unsecured and repayable on 1 February 2024. Connected company loan is at 5%, unsecured and repayable on 1 January 2028.
Bank loan outstanding at the reporting date include an amount of £ 507,687 (2022 £623,323) repayable by instalments and an amount of £ 894,758 repayable otherwise than by instalments which fall due for payment after more than five years from the reporting date.
9. Related party transactions
The company received unsecured, interest free loans from the shareholders amounting to £243,940 (2022:£627,940)
10. Period of accounts
These financial statements are for the year ended 31 January 2023. The comparative period is from incorporation, 25 August 2020 to 31 January 2022.