Registered number
04754819
A & A Trading Co Ltd
Filleted Accounts
31 May 2024
A & A Trading Co Ltd
Registered number: 04754819
Balance Sheet
as at 31 May 2024
Notes 2024 2023
£ £
Fixed assets
Investments 3 2,000,000 2,000,000
Current assets
Debtors 4 236,227 259,206
Cash at bank and in hand 123 27,704
236,350 286,910
Creditors: amounts falling due within one year 5 (174,285) (163,920)
Net current assets 62,065 122,990
Total assets less current liabilities 2,062,065 2,122,990
Creditors: amounts falling due after more than one year 6 (447,292) (488,249)
Provisions for liabilities (184,330) (184,330)
Net assets 1,430,443 1,450,411
Capital and reserves
Called up share capital 143,256 143,256
Non-distributable reserve 8 675,303 675,303
Profit and loss account 611,884 631,852
Shareholders' funds 1,430,443 1,450,411
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
P S Dhandwar
Director
Approved by the board on 13 February 2025
A & A Trading Co Ltd
Notes to the Accounts
for the year ended 31 May 2024
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rental of investment property. Turnover from the rental of investment property is recognised by reference to the stage of completion of the contract.
Investment property
Investment property is included at fair value. Gains are recognised in the profit and loss account. Deferred tax is provided on these gains at the rate expected to apply when the property is sold. Changes in fair value are included in the profit and loss account. No depreciation is provided in respect of investment properties.
This treatment conflicts with the requirement of The Companies Act that all properties should be depreciated. However the director considers that, because this property is not held for consumption, but for their investment potential it is necessary to adopt the requirements of the FRS in order to give a true and fair view.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 0 0
3 Investments
Other
investments
£
Cost
At 1 June 2023 2,000,000
At 31 May 2024 2,000,000
Historical cost
At 1 June 2023 1,140,367
At 31 May 2024 1,140,367
The investment property valuation was carried out by the director this year. The director believes that the current property valuation is fairly stated as at the balance sheet date.
4 Debtors 2024 2023
£ £
Amounts owed by related undertakings and undertakings in which the company has a participating interest 233,518 254,128
Other debtors 2,709 5,078
236,227 259,206
5 Creditors: amounts falling due within one year 2024 2023
£ £
Bank loans 41,145 38,557
Trade creditors 1,020 -
Taxation and social security costs 18,734 10,786
Director's loan account 95,959 105,059
Other creditors 17,427 9,518
174,285 163,920
6 Creditors: amounts falling due after one year 2024 2023
£ £
Bank loans 447,292 488,249
7 Loans 2024 2023
£ £
Creditors include:
Secured bank loans 451,404 484,444
Bank loan is secured on the properties of the company.
8 Non-distributable reserve 2024 2023
£ £
At 1 June 2023 675,303 412,803
Gain on revaluation of land and buildings - 350,000
Deferred taxation arising on the revaluation of land and buildings - (87,500)
At 31 May 2024 675,303 675,303
Profit and loss accounts includes non-distributable profits arisen as a result of gains on the revaluation of investment property, net of deferred taxation. These profits are not distributable and hence are stated separately in the Statement of Changes in Equity to differenciate from distributable profits.
9 Related party transactions
During the year the company made related party transactions with Beta Shoes Ltd, a company under common control. The company charges commercial rent for the use of premises on commercial terms to this related company. Both companies also give interest free cash advances to each other on the need basis. The commercial rent charged for the year was £90,000 (2023: £90,000). As at the balance sheet date the amount receivable from Beta Shoes Ltd was £233,518 (2023: £254,128).
10 Other information
A & A Trading Co Ltd is a private company limited by shares and incorporated in England. Its registered office is:
Unit 15 Slough Interchange
Industrial Estate, Whittenham Close
Slough
Berkshire
SL2 5EP
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