The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Chiltern Court (Baker Street) Residents Limited is a private company limited by shares incorporated in England and Wales. The registered office is 188 Baker Street, London, NW1 5SD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will 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.

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. Cash and cash equivalents include cash balances held in service charge accounts, which are restricted.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Service charges

The Company is responsible for the management of the common parts of Chiltern Court in accordance with the lease and collects service charges from lessees in order to fund expenditure incurred in the management of the property. These service charges are held by the Company for the lessees as required by Section 42 of the Landlord and Tenant Act 1987. Transactions relating to the management of the property are reported separately to the lessees. These are excluded from the financial statements of the company other than the summary in Note 6 - Building Fund.

Management has exercised judgment in including balance sheet items relating to the Service Charge Accounts, including cash, debtors and creditors, within the Company’s financial statements. This treatment is consistent with the ICAEW Technical Release 03/11 on Service Charge Accounts.

The average monthly number of persons (including directors) employed by the company during the year was:

The presentation of creditors note above differs from the prior year accounts. This is for better presentation and does not result from an error.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is qualified and includes the following:

Qualified Opinion

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section, the financial statements:

• give a true and fair view of the state of the company's affairs as at 24 June 2024 and of its performance 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.

Basis for qualified opinion

Within the total balance of other creditors amounting to £1,714,734, we identified licence deposits of £57,388 and sundry creditor balance of £23,408. During the course of our audit, we were unable to obtain sufficient appropriate audit evidence to verify the accuracy and completeness of these two balances.

The existing processes and procedures in place to manage license deposits at the Company had not enabled us in substantiating the total license deposit balance of £57,388, with required audit evidence, limiting our ability to confirm its completeness and accuracy. We are advised by management that new procedures are being put in place to alleviate this problem.

The sundry creditors of £23,408 relates to historical transactions recorded by management between 2011 and 2015. The supporting documentation for this balance could not be made available upon request. As a result, we were unable to assess the commercial rationale and confirm the completeness and accuracy of the balance.

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 qualified opinion.