Caseware UK (AP4) 2022.0.179 2022.0.179 2023-04-302023-04-30false2022-05-01false55true 03300040 2022-05-01 2023-04-30 03300040 2021-05-01 2022-04-30 03300040 2023-04-30 03300040 2022-04-30 03300040 2021-05-01 03300040 1 2022-05-01 2023-04-30 03300040 1 2021-05-01 2022-04-30 03300040 2 2022-05-01 2023-04-30 03300040 2 2021-05-01 2022-04-30 03300040 d:CompanySecretary1 2022-05-01 2023-04-30 03300040 d:Director1 2022-05-01 2023-04-30 03300040 d:Director2 2022-05-01 2023-04-30 03300040 d:Director3 2022-05-01 2023-04-30 03300040 d:Director4 2022-05-01 2023-04-30 03300040 d:Director5 2022-05-01 2023-04-30 03300040 d:Director6 2022-05-01 2023-04-30 03300040 d:RegisteredOffice 2022-05-01 2023-04-30 03300040 e:FreeholdInvestmentProperty 2022-05-01 2023-04-30 03300040 e:FreeholdInvestmentProperty 2023-04-30 03300040 e:FreeholdInvestmentProperty 2022-04-30 03300040 e:CurrentFinancialInstruments 2023-04-30 03300040 e:CurrentFinancialInstruments 2022-04-30 03300040 e:Non-currentFinancialInstruments 2023-04-30 03300040 e:Non-currentFinancialInstruments 2022-04-30 03300040 e:CurrentFinancialInstruments e:WithinOneYear 2023-04-30 03300040 e:CurrentFinancialInstruments e:WithinOneYear 2022-04-30 03300040 e:Non-currentFinancialInstruments e:AfterOneYear 2023-04-30 03300040 e:Non-currentFinancialInstruments e:AfterOneYear 2022-04-30 03300040 e:ReportableOperatingSegment1 2022-05-01 2023-04-30 03300040 e:ReportableOperatingSegment1 2021-05-01 2022-04-30 03300040 e:UKTax 2022-05-01 2023-04-30 03300040 e:UKTax 2021-05-01 2022-04-30 03300040 e:ShareCapital 2022-05-01 2023-04-30 03300040 e:ShareCapital 2023-04-30 03300040 e:ShareCapital 2021-05-01 2022-04-30 03300040 e:ShareCapital 2022-04-30 03300040 e:ShareCapital 2021-05-01 03300040 e:InvestmentPropertiesRevaluationReserve 2022-05-01 2023-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2023-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 1 2022-05-01 2023-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2 2022-05-01 2023-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2021-05-01 2022-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2022-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2021-05-01 03300040 e:InvestmentPropertiesRevaluationReserve 1 2021-05-01 2022-04-30 03300040 e:InvestmentPropertiesRevaluationReserve 2 2021-05-01 2022-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2023-04-30 03300040 e:RetainedEarningsAccumulatedLosses 1 2022-05-01 2023-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2 2022-05-01 2023-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2021-05-01 2022-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2022-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2021-05-01 03300040 e:RetainedEarningsAccumulatedLosses 1 2021-05-01 2022-04-30 03300040 e:RetainedEarningsAccumulatedLosses 2 2021-05-01 2022-04-30 03300040 d:FRS102 2022-05-01 2023-04-30 03300040 d:Audited 2022-05-01 2023-04-30 03300040 d:FullAccounts 2022-05-01 2023-04-30 03300040 d:PrivateLimitedCompanyLtd 2022-05-01 2023-04-30 03300040 e:Subsidiary1 2022-05-01 2023-04-30 03300040 e:Subsidiary1 1 2022-05-01 2023-04-30 03300040 e:Subsidiary2 2022-05-01 2023-04-30 03300040 e:Subsidiary2 1 2022-05-01 2023-04-30 03300040 2 2022-05-01 2023-04-30 03300040 6 2022-05-01 2023-04-30 03300040 e:OtherDeferredTax 2023-04-30 03300040 e:OtherDeferredTax 2022-04-30 iso4217:GBP xbrli:pure

Registered number: 03300040










EFFECTIVE PROPERTIES LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2023



 
EFFECTIVE PROPERTIES LIMITED
 

COMPANY INFORMATION


DIRECTORS
Mark Pears CBE 
Sir Trevor Pears CMG 
David Pears 
Roshan Pathman 
Mark Greig 
WPG Registrars Limited 




COMPANY SECRETARY
William Bennett



REGISTERED NUMBER
03300040



REGISTERED OFFICE
Ground Floor
30 City Road

London

EC1Y 2AB




INDEPENDENT AUDITORS
Gravita II LLP
Chartered Accountants & Statutory Auditor

Ground Floor

30 City Road

London

EC1Y 2AB





 
EFFECTIVE PROPERTIES LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Statement of Changes in Equity
9
Notes to the Financial Statements
10 - 20


 
EFFECTIVE PROPERTIES LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

PRINCIPAL ACTIVITY

The principal activity of the company is property investment.

DIRECTORS

The directors who served during the year were:

Mark Pears CBE 
Sir Trevor Pears CMG 
David Pears 
Roshan Pathman 
Mark Greig 
WPG Registrars Limited 

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1

 
EFFECTIVE PROPERTIES LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023


SMALL COMPANIES NOTE

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





William Bennett
Secretary

Date: 27 October 2023

Page 2

 
EFFECTIVE PROPERTIES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFECTIVE PROPERTIES LIMITED
 


OPINION

We have audited the financial statements of Effective Properties Limited (the 'Company') for the year ended 30 April 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity,  and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 30 April 2023 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.

BASIS FOR OPINION

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves.  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.
Page 3

 
EFFECTIVE PROPERTIES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFECTIVE PROPERTIES LIMITED (CONTINUED)


OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the 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 in relation to which 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 directors' 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' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

RESPONSIBILITIES OF DIRECTORS
 
As explained more fully in the Directors' responsibilities statement set out on page 1, 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.

AUDITORS' 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 Auditors' 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.

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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Page 4

 
EFFECTIVE PROPERTIES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFECTIVE PROPERTIES LIMITED (CONTINUED)


The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the property sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including, but not limited to, the Companies Act 2006,  and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

understanding the business model as part of the control and business environment;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations; and
reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentations or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Page 5

 
EFFECTIVE PROPERTIES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFECTIVE PROPERTIES LIMITED (CONTINUED)


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

USE OF OUR REPORT

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 Auditors' 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.





Ian Hughes ACA (Senior statutory auditor)
for and on behalf of
Gravita II LLP
Chartered Accountants
Statutory Auditor
Ground Floor
30 City Road
London
EC1Y 2AB
23 November 2023

Page 6

 
EFFECTIVE PROPERTIES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023

2023
2022
Note
£
£

  

Turnover
 3 
454,765
473,510

Cost of sales
  
(214,571)
(229,302)

GROSS PROFIT
  
240,194
244,208

Administrative expenses
  
(14,142)
(13,809)

Profit on sale of investment properties
      4
514,415
-

Fair value movements
  
-
800,000

OPERATING PROFIT
  
740,467
1,030,399

Income from shares in group undertakings
  
-
350,000

Interest receivable and similar income
  
221,125
208,434

Interest payable and similar expenses
 7 
(275,848)
(172,919)

PROFIT BEFORE TAX
  
685,744
1,415,914

Tax on profit
 8 
(46,619)
(497,060)

PROFIT FOR THE FINANCIAL YEAR
  
639,125
918,854

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
639,125
918,854

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 
EFFECTIVE PROPERTIES LIMITED
REGISTERED NUMBER: 03300040

STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Investments
 9 
2
2

Investment property
 10 
7,578,550
10,078,550

  
7,578,552
10,078,552

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 11 
6,891,675
6,196,832

Cash at bank and in hand
  
783,036
663,149

  
7,674,711
6,859,981

Creditors: amounts falling due within one year
 12 
(708,030)
(310,543)

NET CURRENT ASSETS
  
 
 
6,966,681
 
 
6,549,438

TOTAL ASSETS LESS CURRENT LIABILITIES
  
14,545,233
16,627,990

Creditors: amounts falling due after more than one year
 13 
(3,946,847)
(5,327,912)

PROVISIONS FOR LIABILITIES
  

Deferred Taxation
 14 
(882,159)
(1,272,976)

  
 
 
(882,159)
 
 
(1,272,976)

NET ASSETS
  
9,716,227
10,027,102


CAPITAL AND RESERVES
  

Called up share capital 
  
1,000
1,000

Investment property revaluation reserve
  
3,442,611
5,015,760

Profit and loss account
  
6,272,616
5,010,342

TOTAL EQUITY
  
9,716,227
10,027,102


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



David Pears
Roshan Pathman
Director
Director


Date: 27 October 2023

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 
EFFECTIVE PROPERTIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2022
1,000
5,015,760
5,010,342
10,027,102


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
639,125
639,125

Transfer realised gains to profit & loss account
-
(1,963,966)
1,963,966
-

Deferred tax movements
-
390,817
(390,817)
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(1,573,149)
2,212,274
639,125

Dividends
-
-
(950,000)
(950,000)


AT 30 APRIL 2023
1,000
3,442,611
6,272,616
9,716,227



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 May 2021
1,000
4,663,446
5,043,802
9,708,248


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
918,854
918,854

Transfer revaluations in the year
-
800,000
(800,000)
-

Deferred tax movements
-
(447,686)
447,686
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
352,314
566,540
918,854

Dividends
-
-
(600,000)
(600,000)


AT 30 APRIL 2022
1,000
5,015,760
5,010,342
10,027,102


The notes on pages 10 to 20 form part of these financial statements.

Page 9

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

1.


GENERAL INFORMATION

Effective Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, 30 City Road, London, EC1Y 2AB. The principal place of business is Haskell House, 152 West End Lane, London, NW6 1SD.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 other than where additional disclosure is required to show a true and fair view.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The company's functional and presentational currency is GBP and rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS

The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.

 
2.3

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing these financial statements.

 
2.4

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the rents receivable.

  
2.5

PROPERTY TRANSACTIONS

Purchases and sales of properties are included on the basis of completions occurring during the year.

 
2.6

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 10

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.8

INVESTMENT PROPERTY

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

 
2.9

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
Page 11

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.13
FINANCIAL INSTRUMENTS (CONTINUED)


Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
 
Page 12

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.13
FINANCIAL INSTRUMENTS (CONTINUED)


Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.14

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Page 13

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.15

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.16

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rent receivable
454,765
473,510


All turnover arose within the United Kingdom.

Page 14

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

4.


PROFIT ON SALE OF INVESTMENT PROPERTIES

2023
2022
£
£



Sale of investment properties
3,014,415
-

Historical cost
(536,034)
-

2,478,381
-



Prior years revaluation realised
(1,963,966)
-

514,415
-


5.


AUDITORS' REMUNERATION

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£


Fees payable to the Company's auditors for the audit of the Company's   financial statements
4,077
4,101


6.


EMPLOYEES

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
5
5


7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
275,848
172,919

Included in interest on bank loans is £17,619 (2022 - £28,277) of loan issue costs amortised in the year.

Page 15

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

8.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
437,436
49,374


TOTAL CURRENT TAX
437,436
49,374

DEFERRED TAX


Origination and reversal of timing differences
(390,817)
447,686

TOTAL DEFERRED TAX
(390,817)
447,686


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
46,619
497,060

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2022 -higher than) the standard rate of corporation tax in the UK of 19.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
685,744
1,415,914


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.5% (2022 -19%)
133,720
269,024

EFFECTS OF:


Capital allowances for year in excess of depreciation
(968)
(1,150)

Other timing differences leading to an (decrease)/increase in taxation
(390,817)
447,686

Non-taxable income
-
(218,500)

Capital gains
304,695
-

Other differences leading to an decrease in the tax charge
(11)
-

TOTAL TAX CHARGE FOR THE YEAR
46,619
497,060


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 16

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

9.


INVESTMENT IN SUBSIDIARY UNDERTAKINGS





Investments in subsidiary companies

£



COST OR VALUATION


At 1 May 2022
2



At 30 April 2023
2





SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Sunnyview Properties Limited
Ground Floor, 30 City Road, London, EC1Y 2AB
Property Investment
Ordinary
100%
Alpharock Limited
Ground Floor, 30 City Road, London, EC1Y 2AB
Property Investment
Ordinary
100%

The aggregate of the share capital and reserves as at 30 April 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit
£
£

Sunnyview Properties Limited
2,925,738
52,698

Alpharock Limited
(190,306)
93,052

Page 17

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

10.


INVESTMENT PROPERTY


Freehold investment property

£



VALUATION


At 1 May 2022
10,078,550


Disposals
(2,500,000)



AT 30 APRIL 2023
7,578,550

The 2023 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
3,253,780
3,789,814

Page 18

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

11.


DEBTORS

2023
2022
£
£


Amounts owed by group undertakings
6,862,808
6,162,793

Other debtors
20,887
21,881

Prepayments and accrued income
7,980
12,158

6,891,675
6,196,832



12.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Bank overdrafts
-
22,177

Bank loans
87,509
86,581

Corporation tax
437,436
49,374

VAT payable
11,571
15,061

Other creditors
80,687
57,829

Accruals and deferred income
90,827
79,521

708,030
310,543


The bank loans are secured by way of a legal charge over specific investment properties and also investment properties owned by one of the company's subsidiaries.


13.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023
2022
£
£

Bank loans
3,946,847
5,327,912

3,946,847
5,327,912


The bank loans are secured by way of a legal charge over specific investment properties and also investment properties owned by one of the company's subsidiaries.

Page 19

 
EFFECTIVE PROPERTIES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023

14.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
1,272,976
825,290


(Released)/Charged to the income statement
(390,817)
447,686



AT END OF YEAR
882,159
1,272,976

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Tax on revaluation of investment properties
882,159
1,272,976

882,159
1,272,976


15.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemptions from disclosure of intra group transactions under FRS102 Section 1A, paragraph 1 AC.35.
The company provided a cross guarantee over certain investment properties to secure a bank loan held by a wholly owned subsidiary Alpharock Limited. 
The Directors are related parties due to their interests and directorships. Included in the financial statements are the following amounts payable/(receivable) by the company for management, administration services provided and rent receivable.

2023
2022
£
£

The William Pears Group of Companies Limited (interests of Mark Pears CBE, Sir Trevor Pears CMG and David Pears)


Agents fees
3,582
3,548

Accountancy fees
10,022
9,679

Rent receivable
(43,000)
(43,000)


Paramount Lettings Limited (interests of Roshan Pathman and Mark Greig)


Agents fees
26,465
22,105

Rent receivable
(103,500)
(103,500)


Page 20