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Registration number: 0679204

Karmel Development Co. Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 March 2024

 

Karmel Development Co. Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 13

 

Karmel Development Co. Limited

Company Information

Directors

J L Karmel

S Karmel

H Karmel

Company secretary

P Karmel

Registered office

Lawford House
Albert Place
London
N3 1QA

Accountants

Sterlings Ltd
Chartered Accountants
Lawford House
Albert Place
London
N3 1QA

 

Karmel Development Co. Limited

(Registration number: 0679204)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

3,574

4,207

Investment property

5

313,382

288,120

Other financial assets

6

176,573

209,442

 

493,529

501,769

Current assets

 

Debtors

7

23,765

24,460

Cash at bank and in hand

 

203,278

317,067

 

227,043

341,527

Creditors: Amounts falling due within one year

8

(101,344)

(117,454)

Net current assets

 

125,699

224,073

Total assets less current liabilities

 

619,228

725,842

Creditors: Amounts falling due after more than one year

8

(21,667)

(31,667)

Net assets

 

597,561

694,175

Capital and reserves

 

Called up share capital

9

100

100

Revaluation reserve

(116,818)

(136,700)

Profit and loss account

714,279

830,775

Shareholders' funds

 

597,561

694,175

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Karmel Development Co. Limited

(Registration number: 0679204)
Balance Sheet as at 31 March 2024

Approved and authorised by the Board on 30 October 2024 and signed on its behalf by:
 

.........................................
J L Karmel
Director

.........................................
H Karmel
Director

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Lawford House
Albert Place
London
N3 1QA
England

The principal place of business is:
Jondean House
47 Newberries Avenue
Radlett
Herts
WD7 7EL

These financial statements were authorised for issue by the Board on 30 October 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Pounds Sterling, which is also the functional currency of the Company. Rounding of amounts shown in the financial statements is to the nearest Pound.

Going concern

The financial statements have been prepared on a going concern basis.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Judgements

In the application of the Company's accounting policies, which are described above, management is required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on judgement and experience together with any other factors that are considered to be relevant. Actual results may differ from these estimates.

Estimates and any underlying assumptions used are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current period and subsequent periods.

Key sources of estimation uncertainty

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

Valuation of freehold land and buildings held as investment properties

As discussed in the notes to the financial statements, freehold land and buildings held as investment property are stated at fair value on an open market existing use basis. This policy requires that a reasonable assessment of fair value is capable of being made and that market value reflects fair value. The carrying amount is £313,382 (2023 -£288,120).


Valuation of investments held as fixed assets

As discussed in the notes to the financial statements, investments held as fixed assets are stated at fair value. This policy requires that a reasonable assessment of fair value is capable of being made and that market value reflects fair value. The carrying amount is £176,573 (2023 -£209,442).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for rents and provision of services in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Tax

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

The current corporation 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 taxable income.

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

25% reducing balance

Motor vehicles

20% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.
 Recognition and measurement
A financial instrument is recognised when the Company becomes a party to the contractual provisions of the instrument with initial measurement being at the transaction price.
 Impairment
Financial assets are assessed for indications of impairment at the end of each accounting period. They are considered to be impaired when there is evidence that the estimated future cash flows of the asset have been affected.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2023 - 5).

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

4

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 April 2023

22,724

22,724

Additions

1,615

1,615

Disposals

(18,089)

(18,089)

At 31 March 2024

6,250

6,250

Depreciation

At 1 April 2023

18,517

18,517

Charge for the year

1,194

1,194

Eliminated on disposal

(17,035)

(17,035)

At 31 March 2024

2,676

2,676

Carrying amount

At 31 March 2024

3,574

3,574

At 31 March 2023

4,207

4,207

5

Investment properties

2024
£

At 1 April

288,120

Additions

25,262

Disposals

(1,721)

Fair value adjustments

1,721

At 31 March

313,382

The investment properties class of fixed assets has been revalued at each year end by one of the directors who is internal to the company. The basis of this valuation was open market value. This class of assets has a historical cost of £231,561 (2023 - £207,885). All revaluation surpluses and deficits have been transferred to a revaluation reserve. Should the investment properties be sold at the valuation shown, a tax charge not exceeding £15,298 (2023 - £13,732) would arise.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

6

Other financial assets (current and non-current)

Financial assets at fair value through profit and loss
£

Total
£

Non-current financial assets

Cost or valuation

At 1 April 2023

209,442

209,442

Fair value adjustments

18,295

18,295

Additions

34,659

34,659

Disposals

(85,823)

(85,823)

At 31 March 2024

176,573

176,573

Impairment

Carrying amount

At 31 March 2024

176,573

176,573

The historical cost of the listed investments was £347,418 (2023 - £339,082). The historical cost of the unlisted investments was £27,794 (2023 - £87,294). Should all of the listed investments and unlisted investments be sold at the valuation shown, a tax charge not exceeding £nil (2023 - £nil) would arise.

Unlisted investments included within the above totals and amounting to £55,827 (2023 - £115,327) were held by a nominee in trust for the benefit of the company.

7

Debtors

Current

2024
£

2023
£

Prepayments

2,745

3,282

Other debtors

21,020

21,178

23,765

24,460

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

8

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

10

10,000

10,000

Taxation and social security

 

554

1,992

Accruals and deferred income

 

10,924

10,578

Other creditors

 

79,866

94,884

 

101,344

117,454

All loans included within other creditors are interest free and repayable on demand.

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

10

21,667

31,667

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

10

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

21,667

31,667

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,000

10,000

Bank borrowings

The company has a bank loan under the Bounce Back Loan Scheme as backed by the Secretary of State for Business, Energy and Industrial Strategy and as guaranteed by HM Government. The Bounce Back loan as at
year end is denominated in Pounds Sterling with a nominal interest rate of 2.5%, and the final instalment is due in May 2027. The interest due for the first twelve months is paid directly to the bank by HM Government as a
business interruption payment. The carrying amount at year end is £31,667 (2023 - £41,667).

11

Related party transactions

Other related party transactions

 

Karmel Development Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

During the year the company made the following related party transactions:

H Karmel (Director):
H Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to H Karmel was £45,121 (2023 - £43,052).

J L Karmel (Director):
J L Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to J L Karmel was £7,926 (2023 - £8,118).

S Karmel (Director):
S Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to S Karmel was £24,261 (2023 - £22,703).

D Landes (Close relative of directors and shareholders):
D Landes had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities or other debtors within debtors within current assets as applicable. At the balance sheet date the amount owed to D Landes was £2,201 (2023 - £1,853).

P Karmel (Close relative of directors and shareholders):
P Karmel had a loan account with the company during the year. No interest was applicable to this loan account and it is repayable on demand. The amount is included in other creditors within current liabilities. At the balance sheet date the amount due to P Karmel was £357 (2023 - £357).