Unaudited Financial Statements
Karlin Trading Limited
For the Year Ended 31 March 2023
Registered number: NI615909
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Company Information
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12 - 15 Donegall Square West
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11-16 Donegall Square East
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Contents
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Notes to the Financial Statements
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Independent Accountant's Report to the directors of the unaudited financial statements of Karlin Trading Limited for the Year Ended 31 March 2023
In order to assist you fulfil your duties under the Companies Act 2006, we have compiled the financial statements of Karlin Trading Limited for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Balance Sheet, the Statement of changes in equity and the related notes to the financial statements, including a summary of significant accounting policies, from the company's accounting records and from information and explanations you have given to us.
The financial statements have been prepared on the basis set out in the notes to the financial statements.
This report is made solely to the directors of Karlin Trading Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely that we might compile the financial statements that we have been engaged to compile, report to the company's directors that we have done so and state those matters that we have agreed to state to the directors of Karlin Trading Limited, as a body, in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Karlin Trading Limited and its directors, as a body, for our work or for this report.
We have carried out this engagement in accordance with the technical guidance issued by Chartered Accountants Ireland ("the Institute") and have complied with the ethical guidance laid down by the Institute relating to members undertaking the compilation of financial statements.
You have approved the financial statements for the year ended 31 March 2023 and you have acknowledged on the Balance Sheet as at 31 March 2023 your duty to ensure that Karlin Trading Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view in accordance with the Companies Act 2006. You consider that Karlin Trading Limited is exempt from the statutory audit requirement for the year ended 31 March 2023.
We have not been instructed to carry out an audit or review the financial statements of Karlin Trading Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
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Chartered Accountants
12 - 15 Donegall Square West
Belfast
BT1 6JH
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Date: 13 March 2024
Page 1
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Karlin Trading Limited
Registered number:NI615909
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Balance Sheet
As at 31 March 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Page 2
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Karlin Trading Limited
Registered number:NI615909
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Balance Sheet (continued)
As at 31 March 2023
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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 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 have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 March 2024.
The notes on pages 4 to 9 form part of these financial statements.
Page 3
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Notes to the Financial Statements
For the Year Ended 31 March 2023
Karlin Trading Limited is a company limited by shares and incorporated in Northern Ireland. The registered office is 118 Belfast Road, Newtownards, Northern Ireland, BT23 4TY. The principal activity of the company is investment business.
2.Accounting policies
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Basis of preparation of financial statements
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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.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are presented in Sterling (£).
The following principal accounting policies have been applied:
The directors have assessed that there are adequate resources to meet the ongoing costs of the business for a minimum of 12 months from the date of signing the financial statements. For this reason the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business.
Interest income is recognised in profit or loss using the effective interest method.
Page 4
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Notes to the Financial Statements
For the Year Ended 31 March 2023
2.Accounting policies (continued)
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Current and deferred taxation
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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 balance sheet 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 balance sheet 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 balance sheet date.
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 profit or loss.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
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.
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Cash and cash equivalents
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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.
Page 5
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Notes to the Financial Statements
For the Year Ended 31 March 2023
2.Accounting policies (continued)
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.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:
Market value of investment properties
Estimates are made in respect of the market value of investment properties. When assessing the market value of these assets, factors including current rent receivable and available data on current market yields and activity are considered.
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The average monthly number of employees, including directors, during the year was 2 (2022 - 2).
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Page 6
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Notes to the Financial Statements
For the Year Ended 31 March 2023
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Freehold investment property
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The 2023 valuations were made by the directors, on an open market value for existing use basis.
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Amounts owed by connected company
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Page 7
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Notes to the Financial Statements
For the Year Ended 31 March 2023
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to connected company
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Accruals and deferred income
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Page 8
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Notes to the Financial Statements
For the Year Ended 31 March 2023
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Allotted, called up and fully paid
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1,071 (2022 - 1,071) Ordinary shares of £1.00 each
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Share premium account
Share premium represents the excess of the issue price over the par value on shares issued less any transaction costs arising on issue.
Profit and loss account
This includes all current and prior period retained profits and losses.
Included within the reserve is £62,101 of non-distributable income in relation to listed investment revaluations less deferred tax.
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Related party transactions
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The company is connected to three companies by virtue of common control. The balances owed to and from these are companies are detailed below.
At the balance sheet date the amount owed from two companies related by common control was £729,350 (2022: £729,350). The loans are unsecured, interest free and repayable upon demand.
At the balance sheet date the amount owed to a company related by common control was £318 (2022: £318). The loan is unsecured, interest free and repayable upon demand.
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Page 9
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