REGISTERED NUMBER: 03657703 (England and Wales)

Klash Properties Limited

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr M Ashfaq

Mr M Shafiq

REGISTERED OFFICE:

Unit M

Westwood Industrial Estate

Arkwright Street

Oldham

OL9 9LZ

REGISTERED NUMBER:

03657703 (England and Wales)

AUDITORS:

SCB (Accountants) Limited

31 Sackville street

Manchester

M1 3LZ

FIXED ASSETS

Tangible assets

5

736

982

Investments

6

100,000

100,000

Investment property

7

2,452,530

1,883,527

2,553,266

1,984,509

CURRENT ASSETS

Stocks

2,048,117

1,545,824

Debtors

8

7,370

4,864

Cash in hand

412

867

2,055,899

1,551,555

CREDITORS

Amounts falling due within one year

9

(4,508,326

)

(3,455,891

)

NET CURRENT LIABILITIES

(2,452,427

)

(1,904,336

)

TOTAL ASSETS LESS CURRENT LIABILITIES

100,839

80,173

CAPITAL AND RESERVES

Called up share capital

10

2

2

Retained earnings

100,837

80,171

SHAREHOLDERS' FUNDS

100,839

80,173

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr M Shafiq - Director

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:

Unit M Westwood Industrial

Estate Arkwright Street

Oldham

OL9 9LZ

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3.	ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

GOING CONCERN

At 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.

At 31 December 2024, the company had net assets of £100,839 and net profit of £20,666 and the financial statements have been prepared on a going concern basis.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

REVENUE RECOGNITION

Revenue is the amount derived from ordinary activities and is measured at the fair value of the consideration received or receivable.

Revenue from the renting of properties is recognised at the fair value of consideration received or receivable in respect of rental income. Rental income from is recognised in the period to which it relates.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

TANGIBLE ASSETS

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment.

DEPRECIATION

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Asset class

Depreciation method and rate

Fixtures and Fittings

25% reducing balance

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.

INVESTMENT PROPERTY

Investment properties are initially recorded at cost, and subsequently stated at cost less any impairment losses.

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by directors..

Director's valuations are based on advice received from independent valuers. Such valuations are performed on an open market basis, being the amounts for which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction at the valuation date.

STOCK

Stocks include properties held for development and are stated at the lower of cost and estimated selling price less costs to complete and sell. The directors consider that the properties should be accounted for as stock on the basis that at the balance sheet date it was the intention to develop the properties for sale.

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.

The company's bankers hold a debenture covering all the assets of the company, and an unlimited inter-company guarantee over all the assets of the Group Companies. The other companies in the group are Klash Holdings Limited, Klash Clothing Co Limited and Klash Limited.

TRADE DEBTORS

Trade debtors are amounts due from customers for 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.

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.

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.

FINANCIAL INSTRUMENTS

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

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.

Classification of financial liabilities

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

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.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iii) Going concern

The directors consider the company to be a going concern, for the reasons as detailed in accounting policies to these financial statements.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2023 - 2 ) .

5.	TANGIBLE FIXED ASSETS

Furniture,

fittings

and

equipment

£

COST

At 1 January 2024

and 31 December 2024

3,100

DEPRECIATION

At 1 January 2024

2,118

Charge for year

246

At 31 December 2024

2,364

NET BOOK VALUE

At 31 December 2024

736

At 31 December 2023

982

6.	INVESTMENTS

Other

investments

£

COST

At 1 January 2024

and 31 December 2024

100,000

NET BOOK VALUE

At 31 December 2024

100,000

At 31 December 2023

100,000

On 22nd November 2022, the company has purchased 91,074 ordinary shares of Talo Elements Holdings Limited.

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2024

1,883,527

Investment property-Leasehold

74,040

Investment property-Freehold

494,963

At 31 December 2024

2,452,530

NET BOOK VALUE

At 31 December 2024

2,452,530

At 31 December 2023

1,883,527

Carrying amounts of investment properties:

2,452,530

Freehold Property

1,877,039

Leasehold property

575,491

Valuation carried forward

2,452,530

The directors reviewed the carrying values as at 01 January 2024 and 31 December 2024, and are of the opinion the carrying values were in at fair value at both dates.

Director's valuations are based on advice received from independent valuers. Such valuations are performed on an open market basis, being the amounts for which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction at the valuation date.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

3,000

-

VAT

4,370

2,044

Prepayments

-

2,820

7,370

4,864

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

124,538

4,942

Trade creditors

39,354

98

Amounts owed to group undertakings

3,498,836

2,848,479

Amounts owed to joint ventures

838,934

600,000

Taxation and social security

6,264

1,082

Other creditors

400

1,290

4,508,326

3,455,891

The company's bankers hold a debenture covering all the assets of the company, and an unlimited inter-company guarantee over all the assets of the Group Companies. The other companies in the group are Klash Holdings Limited, Klash Clothing Co. Limited and Klash Limited.

Amount owed to joint venture relates to the purchase of property included in stock.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

2

Ordinary share

1

2

2

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Jeffrey Bor Bsc FCA (Senior Statutory Auditor)

For and on behalf of SCB (Accountants) Limited

12.	FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENCIES

The company bankers hold a debenture and inter company guarantee, both of which are unlimited. The inter-company guarantee is with other group companies, Klash Clothing Co Limited, Klash Limited and Klash Holdings Limited.

Klash Properties has overdrawn bank balance. The guarantee in place is related to HMRC guarantee from the bank relating to deferred VAT payments due by a group company, Klash Clothing Co Limited.

13.	RELATED PARTY TRANSACTIONS

The company has taken advantage of exemption available under FRS 102 section 33.1A for non disclosure of transaction with wholly owned group companies.

Amounts owed to group companies are repayable on demand and are shown as being due within one year.

During the year, the company received £238,934 (2023: £600,000) from its joint venture, Samraj Fashion Ltd and Loyal & Sons Ltd , in respect of a proposed purchase of property. At the reporting date, no formal agreement had been entered into between the parties, and accordingly the amount has been recorded as a liability within "Amount owed to joint ventures".The balance outstanding at 31 December 2024 was £838,934 (2023: £600,000).

14.	PARENT AND ULTIMATE PARENT UNDERTAKING

The company's immediate parent is Klash Holdings Limited, incorporated in England.

The immediate and ultimate holding company is Klash Holdings Limited, which prepares group financial statements. Klash Holdings Limited is domiciled and registered in England, and has its registered office and principal place of business at Unit M, Westwood Industrial Estate, Arkwright Street, Oldham, OL9 9LZ.

The ultimate control of the company is under Mr Mohammad Ashfaq and Mr Mohammad Shafiq, who together are de facto owners of the company.

15.	AUDITORS' REMUNERATION

The auditor's fee of the company is borne by group company, Klash Clothing Co. Ltd.