Company registration number 9034515 (England and Wales)
AR & AN Limited
Unaudited financial statements
For the year ended 31 May 2023
AR & AN Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 5
AR & AN Limited
Statement of financial position
As at 31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
2
2,888,804
1,460,000
Current assets
Debtors
3
17,481
12,842
Cash at bank and in hand
46,690
219,166
64,171
232,008
Creditors: amounts falling due within one year
4
(1,793,539)
(546,892)
Net current liabilities
(1,729,368)
(314,884)
Total assets less current liabilities
1,159,436
1,145,116
Creditors: amounts falling due after more than one year
5
(668,866)
(677,805)
Provisions for liabilities
(110,300)
(83,800)
Net assets
380,270
383,511
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
6
380,170
383,411
Total equity
380,270
383,511

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 May 2023 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 year 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.

AR & AN Limited
Statement of financial position (continued)
As at 31 May 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 February 2024 and are signed on its behalf by:
Dr A Patel
Dr A R Patel
Director
Director
Company Registration No. 9034515
AR & AN Limited
Notes to the financial statements
For the year ended 31 May 2023
- 3 -
1
Accounting policies
Company information

AR & AN Limited is a private company limited by shares incorporated in England and Wales. The registered office is 100 Clifton Road, Ruddington, Nottinghamshire, NG11 6DE.

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. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from rentals of property are recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transactions will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.

1.3
Investment property

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. Changes in fair value are recognised in profit or loss.

1.4
Cash and cash equivalents

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.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

AR & AN Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies
(Continued)
- 4 -
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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from connected companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

2
Investment property
2023
£
Fair value
At 1 June 2022
1,460,000
Additions
1,428,804
At 31 May 2023
2,888,804
AR & AN Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
- 5 -
3
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
17,481
12,842
4
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
7,120
4,864
Taxation and social security
5,645
259
Other creditors
1,780,774
541,769
1,793,539
546,892

The long-term loans are secured by fixed charges over the investment properties.

5
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
668,866
677,805
6
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
383,411
29,563
(Loss)/profit for the year
(3,241)
353,848
At the end of the year
380,170
383,411

Included within profit and loss reserves are non-distributable profits, as set out below:

2023
2022
£
£
Non-distributable profits included above
At the beginning of the year
357,325
-
Non distributable profits in the year
(26,500)
357,325
At the end of the year
330,825
357,325
Distributable profits
49,345
26,086
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