Gridwain Limited
Annual Report and Unaudited Financial Statements
For the year ended 30 June 2023
Company Registration No. 01342200 (England and Wales)
Gridwain Limited
Company Information
Directors
D. W. Dove
S. Hampson
Company number
01342200
Registered office
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Accountants
Moore Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Gridwain Limited
Directors' Report
For the year ended 30 June 2023
Page 1

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

Principal activities
The principal activity of the company throughout the year continued to be that of freehold property ownership and rental.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D. W. Dove
S. Hampson
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
D. W. Dove
Director
8 February 2024
Gridwain Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Gridwain Limited for the year ended 30 June 2023
Page 2

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Gridwain Limited for the year ended 30 June 2023 which comprise the profit and loss account, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation

This report is made solely to the Board of Directors of Gridwain Limited, as a body, in accordance with the terms of our engagement letter dated 17 March 2022. Our work has been undertaken solely to prepare for your approval the financial statements of Gridwain Limited and state those matters that we have agreed to state to the Board of Directors of Gridwain Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Gridwain Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Gridwain Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Gridwain Limited. You consider that Gridwain Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Gridwain 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.

Moore Kingston Smith LLP
9 February 2024
Chartered Accountants
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Gridwain Limited
Profit and Loss Account
For the year ended 30 June 2023
Page 3
2023
2022
Notes
£
£
Turnover
120
153
Administrative expenses
(1,635)
(1,613)
Operating loss
(1,515)
(1,460)
Interest receivable and similar income
23
2
Interest payable and similar expenses
-
500
Fair value gains/(losses) on investment properties
-
2,000
(Loss)/profit before taxation
(1,492)
1,042
Taxation
-
0
(546)
(Loss)/profit for the financial year
(1,492)
496
Gridwain Limited
Balance Sheet
As at 30 June 2023
Page 4
2023
2022
Notes
£
£
£
£
Fixed assets
Investment properties
4
4,500
4,500
Current assets
Debtors
5
427
427
Cash at bank and in hand
3,354
3,331
3,781
3,758
Creditors: amounts falling due within one year
6
(6,730)
(5,215)
Net current liabilities
(2,949)
(1,457)
Total assets less current liabilities
1,551
3,043
Provisions for liabilities
7
(691)
(691)
Net assets
860
2,352
Capital and reserves
Called up share capital
8
2
2
Revaluation reserve
2,927
2,927
Profit and loss reserves
(2,069)
(577)
Total equity
860
2,352

For the financial year ended 30 June 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 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 8 February 2024 and are signed on its behalf by:
D. W. Dove
Director
Company Registration No. 01342200
Gridwain Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 5
1
Accounting policies
Company information

Gridwain Limited is a private company limited by shares incorporated in England and Wales. The registered office is Betchworth House, 57-65 Station Road, Redhill, Surrey, RH1 1DL.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 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, modified to include the revaluation investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the balance sheet date, the company had net assets of £true860 and net current liabilities of £2,949. Included in net current liabilities are amounts due to a director and a related company totalling £5,260. The director has confirmed that he will not demand repayment of the debts due for a period of at least twelve months from the date of approval of these accounts and that he will provide additional financial support if required.

 

As a result the directors believe that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.

1.3
Turnover

Turnover represents amounts receivable for ground rents.

1.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account..

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Although this accounting policy is in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), it is a departure from the general requirements of the Companies Act 2006 for all tangible fixed assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified.

1.5
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.

Gridwain Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 6
1.6
Financial instruments

The company only has basic financial instruments measured at amortised cost. The company has no financial instruments that are classified as ‘other’ or basic instruments measured at fair value.

1.7
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.

1.8
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.

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.

Gridwain Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 7
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of investment properties

The investment properties owned by the company have been revalued as at 30 June 2023 by the directors on a fair value basis.

3
Employees

The average monthly number of persons employed by the company during the year was: 0 (2022: 0).

4
Investment property
2023
£
Fair value
At 1 July 2022 and 30 June 2023
4,500

The investment properties have been valued on a fair value basis at 30 June 2023 by the directors, and are stated at their valuation amount. The directors are considered qualified to value the investment properties held by the company due to their vast experience in the field, having worked in the property industry since the 1960s.

 

The historical cost of the properties included at valuation at the balance sheet date is £882 (2022: £882).

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
427
427
Gridwain Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 8
6
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
5,260
3,805
Accruals and deferred income
1,470
1,410
6,730
5,215
7
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Deferred tax on unrealised fair value gains on investment property
691
691
There were no deferred tax movements in the year.
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
9
Related party transactions

Included in creditors is a directors' loan account of £500 (2022: £500) due to D. W. Dove.

 

At the balance sheet date the company owed £4,760 (2022: £3,305) to Plowden Investments Limited. This company is under the control of D. W. Dove and The Rowlands family.

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