Company No: 08892053 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2024		2023
		£		£
Fixed assets
Investment property	3	1,777,930		1,777,930
Investments	4	50		50
		1,777,980		1,777,980
Current assets
Debtors	5	17,467		16,142
Cash at bank and in hand		15,966		25,020
		33,433		41,162
Creditors: amounts falling due within one year	6	( 539,238)		( 543,458)
Net current liabilities		(505,805)		(502,296)
Total assets less current liabilities		1,272,175		1,275,684
Creditors: amounts falling due after more than one year	7	( 994,815)		( 1,022,068)
Provision for liabilities	8	( 52,880)		( 52,880)
Net assets		224,480		200,736
Capital and reserves
Called-up share capital	9	100		100
Fair value reserve		191,269		191,269
Profit and loss account		33,111		9,367
Total shareholders' funds		224,480		200,736

For the financial year ending 31 December 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 financial statements for the financial year in accordance with section 476;
• 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; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Harkalm Estates Limited (registered number: 08892053) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

B Sarner Director

19 September 2025

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Harkalm Estates Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is 11 Rosemont Road, London, NW3 6NG, United Kingdom.

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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover comprises rent receivable on investment properties.

Revenue is recognised in the period to which the rental income relates.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.

Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and 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.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) 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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the company during the year, including directors	3		3

3. Investment property

	Investment property
	£
Valuation
As at 01 January 2024	1,777,930
As at 31 December 2024	1,777,930

4. Fixed asset investments

	Other investments		Total
	£		£
Cost or valuation before impairment
At 01 January 2024	50		50
At 31 December 2024	50		50
Carrying value at 31 December 2024	50		50
Carrying value at 31 December 2023	50		50

5. Debtors

	2024		2023
	£		£
Trade debtors	5		0
Other debtors	17,462		16,142
	17,467		16,142

6. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank loans	27,179		25,771
Trade creditors	840		14,619
Taxation and social security	1,932		1,892
Other creditors	509,287		501,176
	539,238		543,458

7. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Bank loans and overdrafts	994,815		1,022,068

The loan is secured over the investment property held.

Bank loans
	2024		2023
	£		£
Between one and two years	51,191		50,636
Between two and five years	83,284		81,621
After five years	860,340		889,811
	994,815		1,022,068
On demand or within one year	27,179		25,771
	1,021,994		1,047,839

Directors loans
	2024		2023
	£		£
Between one and two years	0		0
Between two and five years	0		0
After five years	0		0
	0		0
On demand or within one year	1,269		16,269
	1,269		16,269

Total borrowings
	2024		2023
	£		£
Between one and two years	51,191		50,636
Between two and five years	83,284		81,621
After five years	860,340		889,811
	994,815		1,022,068
On demand or within one year	28,448		42,040
	1,023,263		1,064,108

8. Deferred tax

	2024		2023
	£		£
At the beginning of financial year	( 52,880)		( 52,880)
At the end of financial year	( 52,880)		( 52,880)

9. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100		100

10. Related party transactions

Other related party transactions

	2024		2023
	£		£
Included within creditors there is an amount owed to a company with common shareholders	440,038		462,538