Company Registration No. 04114678 (England and Wales)
ATLIP HOUSE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
ATLIP HOUSE LIMITED
COMPANY INFORMATION
Directors
Mr P R Patel
Mr S Patel
Company number
04114678
Registered office
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
Auditor
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
ATLIP HOUSE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
ATLIP HOUSE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
The principal activity of the company was that of property investment and development of current properties.
The company owns freehold investment properties in Wembley, London. The company is letting commercial units to various retail shops,clubs and gym. The underlying health of the business is not profitable for current year. The company has commercial rental contracts with business tenants on short term basis due to current development work and income for the year decreased from £324,661 to £262,411.
The company continues to invest in development and improving the property and its integral assets. The directors regard this investment as being integral to continuing success of the business and ensure the company provides tenants with a commercial unit in a business hub.
Financial instruments
The company’s principal financial instruments comprise of bank balances,trade creditors and trade debtors. The main purpose of these instruments is to raise funds for and to finance the company’s operations. In respect of bank balances the liquidity risk is managed by maintaining liquidity of working capital from rental and service charges income,The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to make the payments as and when they fall due. Cash flow are managed through credit processes to monitor the capital expenditure is adequately reflected in the additions to property investments and asset under construction.
Principal risks and uncertainties
Market Demand Risk
The commercial letting market is closely linked with economic conditions. The depressed economic conditions in the UK can have adverse economic impact on rental income and profit of the company. The company is developing property for the rental market and demand from tenants can be uncertain for long term occupancy.
Global Impact of emerging risks
The directors believe it too early to understand fully the longer term impact of the brexit and war in Ukraine but the directors believe the company is well placed to weather any shorter term impacts of uncertainties.
The property sector highlights the risks inherent in a single sector property sector,therefore the company have strategies to continue development work for commercial and residential rental markets. The current strategy is to have growth in commercial and residential sector in city centres
Going concern
The directors have assessed the following factors in assessing the company as a going concern
Decrease in revenue through losses of contractual rent or tenant paid rental slowly.
Diminishing demand for leasing the company's assets going forwards resulting in rental decreases or an increase in void units.
Potential liquidity and working capital shortfalls.
ATLIP HOUSE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The directors considers the company's key indicators are fixed assets and rent and service charge income..
2023 2022
£ £
Fixed Assets 19,094,998 17,417,258
Rent and service charge income 235,067 105,911
Director's statement of duty to promote the success of the company
The directors have complied with the requirements of S172 of the Companies Act 2006. The duties are detailed in section 172 of the Companies Act 2006 are summarised as follows:
The directors of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to
-the likely consequences of any decisions in the long term,
-the interests of the company's employees,
-the need to foster the company's business relationships with suppliers, customers and others,
-the impact of the company's operations on the community and environment,
-the desirability of the company maintaining a reputation for high standards of business conduct ,and
-the need to act fairly as between members of the company.
Employee practices
An equal opportunities statement and policies to ensure employees are treated with dignity, respect, and equality, regardless of gender, race, nationality, ethnic identity, national origin, religious beliefs, disability, age ,marital status, family circumstance, sexual orientation or trade union activity are embedded in the company’s operations manual which governs all aspects of operations including recruitment, training, promotion and discipline of staff.
The company at present does not have any employees other than the directors, however the company does have the interests of the individuals responsible for the delivery of property management and administration services. For these individuals, the company has robust policies in place to safeguard diversity and is committed to equal opportunities for all and providing a workplace free from harassment and discrimination.
Engagement with suppliers,customers and others
The company values the relationship it has with suppliers and customers (Tenants) and undertakes regular communications to comply the needs of the company and needs of supplier or customers. For long term relationship supplier contracts and customer leases are professionally communicated.
The company has a corporate social responsibility to operate safely and effectively within the local community.
Mr P R Patel
Director
5 September 2024
ATLIP HOUSE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of property investment and development of property into commercial units for retail business.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P R Patel
Mr S Patel
Auditor
John Cumming Ross Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
In accordance with the requirements of The Companies (Directors' Report) and limited liability partnerships (Energy and Carbon Report) regulation 2018 the directors would like to disclose the following information for the year ended 31 December 2022. No information is present for comparative period as this is the first period applying these regulations.
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
55,774
45,423
55,774
45,423
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
-
-
-
-
Scope 2 - indirect emissions
- Electricity purchased
9.00
9.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
9.00
9.00
Intensity ratio
Tonnes Co2e per tenants
1.2
1
ATLIP HOUSE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tenants
Measures taken to improve energy efficiency
a) Continuous monitoring and control of use of heating and power in common areas used by the tenants
b) Investing in green energy initiatives at sites under development work
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr P R Patel
Director
5 September 2024
ATLIP HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATLIP HOUSE LIMITED
- 5 -
Opinion
We have audited the financial statements of Atlip House Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 2023 and of its loss 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.
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 Auditor's 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 UK, including the FRC’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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ATLIP HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATLIP HOUSE LIMITED
- 6 -
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 strategic report and the directors' report.
We have nothing to report in respect of the following matters where 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Auditor's 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 auditor's 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.
Discussions were held with the directors with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The outcome of these discussions and enquiries were shared with the engagement team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
Those laws and regulations considered to have a direct effect on the day to day operations of the company include General Data Protection Regulation (GDPR)
It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.
ATLIP HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ATLIP HOUSE LIMITED
- 7 -
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the year end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 auditor's 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.
Balvantkumar B Patel (Senior Statutory Auditor)
For and on behalf of John Cumming Ross Limited
Chartered Certified Accountants and Statutory Auditors
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
5 September 2024
ATLIP HOUSE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Administrative expenses
(298,692)
(601,431)
Other operating income
3
262,411
324,661
Operating loss
4
(36,281)
(276,770)
Interest receivable and similar income
7
938
4
Interest payable and similar expenses
8
(95,454)
(18,642)
Loss before taxation
(130,797)
(295,408)
Tax on loss
9
32,699
107,820
Loss for the financial year
(98,098)
(187,588)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ATLIP HOUSE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,494,998
1,817,258
Investment properties
11
15,600,000
15,600,000
19,094,998
17,417,258
Current assets
Debtors
12
577,950
751,906
Cash at bank and in hand
83,483
3,727
661,433
755,633
Creditors: amounts falling due within one year
13
(3,277,441)
(1,595,803)
Net current liabilities
(2,616,008)
(840,170)
Total assets less current liabilities
16,478,990
16,577,088
Provisions for liabilities
(565,061)
(565,061)
Net assets
15,913,929
16,012,027
Capital and reserves
Called up share capital
15
4,111,000
4,111,000
Share premium account
12,330,302
12,330,302
Other reserves- Non distributable
16
1,695,181
1,695,181
Profit and loss reserves
18
(2,222,554)
(2,124,456)
Total equity
15,913,929
16,012,027
The financial statements were approved by the board of directors and authorised for issue on 5 September 2024 and are signed on its behalf by:
Mr P R Patel
Director
Company Registration No. 04114678
ATLIP HOUSE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
4,111,000
12,330,302
1,830,796
(1,936,868)
16,335,230
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(187,588)
(187,588)
Other movements
-
(135,615)
-
(135,615)
Balance at 31 December 2022
4,111,000
12,330,302
1,695,181
(2,124,456)
16,012,027
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(98,098)
(98,098)
Balance at 31 December 2023
4,111,000
12,330,302
1,695,181
(2,222,554)
15,913,929
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Atlip House Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Kirkland House, 11-15 Peterborough Road, Harrow, Middlesex, HA1 2AX.
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.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Asian Agri Investments Ltd. These consolidated financial statements are available from its registered office at Lot 1, 2nd Floor,Wisma Siamloh, Jalan Kemajuan 87007, Federal Territory of Labuan Malaysia.
1.2
Going concern
Atruet 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 the financial statements.
The financial statements are prepared on the going concern basis as Barrowfen Properties Ltd, the fellow group undertaking, has agreed to provide financial support to the company such that it can continue to trade and meet its liabilities as they fall due. This support will continue for a period of at least 18 months from the date of approval of these financial statements.
The directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. At the balance sheet date the company had net current liabilities of £2,615,633 (2022 840,170). Thus, the directors continue to prepare the financial statements on a going concern basis. Further information regarding the company's business activities, together with the factors likely to affect its future development, performance and position is set out in the Strategic Report.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Other operating income
Other operating income represents amounts receivable for rental and service charges from commercial properties. Other income recognised at the fair value of the rent received or receivable from letting business and service charges provided in the normal course of business.
1.4
Tangible fixed assets
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment properties
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. The surplus or deficit on revaluation is recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash at bank and in hand
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.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties.
Financial liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle the liability simultaneously.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transactions, where the debt instruments is measured at the present value of the future payments discounted at market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.
1.9
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.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
1.10
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
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.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Other operating income
2023
2022
£
£
2023
2022
£
£
Other significant revenue
Rental income arising from investment properties
27,345
105,911
Collateral income
235,067
218,750
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
6,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
2
2
Their aggregate remuneration comprised:
2023
2022
£
£
Director's fees
50,000
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
50,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
301
4
Other interest income
637
Total income
938
4
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
8
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
95,454
18,642
9
Taxation
2023
2022
£
£
Deferred tax
Tax losses carried forward
(32,699)
(107,820)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(130,797)
(295,408)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 25.00%)
(32,699)
(73,852)
Tax effect of expenses that are not deductible in determining taxable profit
50
Deferred tax adjustments in respect of prior years
(34,018)
Taxation credit for the year
(32,699)
(107,820)
10
Tangible fixed assets
Assets under construction
£
Cost
At 1 January 2023
1,817,258
Additions
1,677,740
At 31 December 2023
3,494,998
Depreciation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
3,494,998
At 31 December 2022
1,817,258
The company incurred expenses £1,677,740 (2022: £1,118,778) for a new development at 2 Atlip Road London. The building development work was not yet completed and therefore cost of development included as building cost under construction.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
15,600,000
The carrying value of land and buildings comprises
1 Atlip Road- Land and building Purchased on 11 December 2018 £8,750,000
Shops, clubs and commercial buildings
2 Atlip Road-Land and Building
Large Industrial Unit, warehouse £6,850,000
Total fair value of properties £15,600,000
1 Atlip Road -Land and building
The property acquired on 11 December 2018 at market value. The fair value of the investment properties have been arrived at on the basis of a valuation carried out at 31 December 2023 by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
2 Atlip Road-Land and building
On 15 June 2018 Atlip House Limited ( Formerly Ary properties Limited) acquired by Agri Investments Limited and the above property was at fair value for the period ended 31 December 2023.The property is under development planning and revaluation of land carried out for the year ended 31 December 2023.
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
147,921
387,766
Other debtors
181,787
148,597
329,708
536,363
Deferred tax asset (note 14)
248,242
215,543
577,950
751,906
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
228,279
443,709
Amounts owed to group undertakings
2,744,042
845,724
Other creditors
298,770
299,970
Accruals and deferred income
6,350
6,400
3,277,441
1,595,803
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Tax losses
-
-
248,242
215,543
Investment property
565,061
565,061
-
-
565,061
565,061
248,242
215,543
2023
Movements in the year:
£
Liability at 1 January 2023
349,518
Credit to profit or loss
(32,699)
Liability at 31 December 2023
316,819
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,502
1,502
4,111,000
4,111,000
The company was acquired by Asian Agri Investment Limited on 15 June 2018. Asian Agri Investments Limited was registered in Federal Territory of Labuan, Malaysia.
16
Other reserves
£
At the beginning of the prior year
1,830,796
Other movements -Deferred tax
(135,615)
At the end of the prior year
1,695,181
At the end of the current year
1,695,181
The other reserves - non distributable for the year ended 31 December 2023 £1,695,181 and 31 December 2022 were ££1,695,181 relating to fair value adjustment of investment property and deferred tax liability of £565,061 (2022:£565,061) on fair value adjustment.
ATLIP HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
17
Reserves
During the year the movements in reserves relate to loss for the year ended 31 December 2023 and year ended 31 December 2022.
18
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(2,124,456)
(1,936,868)
Loss for the year
(98,098)
(187,588)
At the end of the year
(2,222,554)
(2,124,456)
19
Related party transactions
The related party transactions and balances are as follows:
2023 2022
£ £
Prashant Patel - Director's fees nil 50,000
Director's loan - Prashant Patel 298,770 298,770
At the year end, an amount of £2,744,042 ( 2022: £845,724) is due to Barrowfen Properties Limited, company with common director. Interest is charged at a rate of Sonia+4% on the loan from the agreement dated 31 December 2022.
The company guaranteed the bank loan (Development facility) of Barrowfen Properties Limited from Barclays Bank for the amount of £12,5m .The company received a collateral fees of £27,543 (2022: £218,750) for the year ended 31 December 2023. The Bank loan was repaid on 14 February 2023.
20
Ultimate controlling party
The company's ultimate parent undertaking is Asian Agri InvestmentsLimited, a company registered in Federal Territory of Labuan, Malaysia.
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