Advani Properties LLP is a limited liability partnership incorporated in England and Wales. The registered office is Bates Mill, Colne Road, Huddersfield, United Kingdom, HD1 3AG.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investment properties. The principal accounting polices are set out below.
Rents receivable under operating leases are included within turnover on a straight-line basis over the lease term. Contributions to dilapidations are also included within turnover and recognised in the period against which the work was undertaken.
Rent is generated from the investment properties.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss
The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
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.
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 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 limited liability partnership 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.
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.
Members' remuneration
Members' remuneration based on a basic profit share, in accordance with the partnership agreement, is classed as an expense in the profit and loss account.
In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment property is included on the balance sheet at fair value. The fair value is arrived at on the basis of valuations carried out by the members.
The average number of persons employed by the LLP during the year was Nil (2024 - Nil).
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 17th April 2024 by Walker Singleton Chartered Surveyors, who are not connected with the limited liability partnership. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The members consider the valuation to be unchanged as at 31 March 2025.
Loans and other debts due to members rank equally with debts due to ordinary creditors on a winding up.
Total amounts due to and from members can be seen in the members' interest section at the bottom
of the balance sheet. Loans to members are interest free and repayable on demand.
During the year a fair valuation surplus of £Nil (2024 - £700,000) was attributed to the member's property capital account. The balance on this account at the year end date is £4,000,000 (2024 - £4,000,000).
Members' capital is repayable in full should a member cease to be a member. As a result, members' capital should be classed as debt, rather than equity. In prior years it was classified as equity and the accounts have now been restated with the correct classification. The total amount of members' capital reclassified is £4,000,010 as at 31 March 2024 (£3,300,010 as at 1 April 2023).
There is no impact on the reported profit for the prior year, or on Total members' interests.