BARAS INVESTMENTS LIMITED
SC411354
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2017
PAGES FOR FILING WITH REGISTRAR
MESTON REID & CO.
CHARTERED ACCOUNTANTS
12 CARDEN PLACE
ABERDEEN
AB10 1UR
BARAS INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
Christopher Grinyer
George Brewster
Ian Cameron
Ian Fergusson
Secretary
Christopher Grinyer
Company number
SC411354
Registered office
14 Albert Place
Dundee
DD1 1XA
Accountants
Meston Reid & Co
12 Carden Place
Aberdeen
AB10 1UR
Bankers
HSBC Bank plc
2 Queens Road
Aberdeen
AB15 4ZT
BARAS INVESTMENTS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
BARAS INVESTMENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2017
30 November 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Investment properties
2
2,085,000
2,312,719
Current assets
Trade and other receivables
3
2,954
2,879
Cash and cash equivalents
64,155
51,483
67,109
54,362
Current liabilities
4
(804,507)
(784,080)
Net current liabilities
(737,398)
(729,718)
Total assets less current liabilities
1,347,602
1,583,001
Non-current liabilities
5
(1,045,752)
(1,171,367)
Net assets
301,850
411,634
Equity
Called up share capital
6
800
800
Retained earnings
301,050
410,834
Total equity
301,850
411,634
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 30 November 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on
11 June 2018 and are signed on its behalf by:
2018-06-11
Christopher Grinyer
Director
Company Registration No. SC411354
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 2 -
1
Accounting policies
Company information
Baras Investments Limited is a
private
company
in the United Kingdom limited by shares
incorporated in Scotland.
The registered office is
14 Albert Place, Dundee, DD1 1XA.
1.1
Accounting convention
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 a
mounts
in these financial statements are
rounded to the nearest £.
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 financial instruments at fair value. The principal accounting policies adopted are set out below.
These financial statements for the year ended 30 November 2017
are the
first
financial statements of Baras Investments Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 December 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 8.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Turnover represents amounts receivable for rental of property net of VAT.
Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for the rental of the property. Rental income in arrears is included in debtors and rental income paid in advance by tenants is included in creditors.
1.4
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in the income statement.
1.5
Cash and cash equivalents
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.
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 3 -
1.6
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 statement of financial position 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 trade and other receivables 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 trade and other payables, 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
paymen
ts 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 payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Investment property
2017
£
Fair value
At 1 December 2016
2,312,719
Revaluations
(227,719)
At 30 November 2017
2,085,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 November 2017 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
3
Trade and other receivables
2017
2016
Amounts falling due within one year:
£
£
Trade receivables
316
368
Other receivables
2,638
2,511
2,954
2,879
4
Current liabilities
2017
2016
£
£
Bank loans and overdrafts
111,140
94,339
Trade payables
309
359
Corporation tax
25,689
24,242
Other taxation and social security
2,149
3,768
Other payables
665,220
661,372
804,507
784,080
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 5 -
5
Non-current liabilities
2017
2016
£
£
Bank loans and overdrafts
1,045,752
1,171,367
The bank loan is secured by fixed securities over heritable property and a floating charge over the remaining assets of the company. In additions the directors have guaranteed security of up to £100,000.
6
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary A shares of £1 each
100
100
100 Ordinary B shares of £1 each
100
100
100 Ordinary C shares of £1 each
100
100
100 Ordinary D shares of £1 each
100
100
100 Ordinary E shares of £1 each
100
100
100 Ordinary F shares of £1 each
100
100
100 Ordinary G shares of £1 each
100
100
100 Ordinary H shares of £1 each
100
100
800
800
7
Related party transactions
Included in other creditors falling due after more than one year are loans of £163,780 (2016 - £163,780) each from Christopher Grinyer, George Brewster, Ian Cameron and Ian Fergusson, directors. The loans are unsecured, interest free and repayable outwith one year.
During the period the company received rent of £172,864 (2016 - £171,797) from a partnership in which each of the directors are partners.
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 6 -
8
Reconciliations on adoption of FRS 102
Reconciliation of equity
At 1 December 2015
At 30 November 2016
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
Fixed assets
Investment properties
2,312,719
-
2,312,719
2,312,719
-
2,312,719
Current assets
Trade and other receivables
1,229
-
1,229
2,879
-
2,879
Bank and cash
42,721
-
42,721
51,483
-
51,483
43,950
-
43,950
54,362
-
54,362
Creditors due within one year
Borrowings
1
(94,340)
(655,121)
(749,461)
(749,460)
-
(749,460)
Taxation
(24,469)
-
(24,469)
(28,010)
-
(28,010)
Other payables
(6,980)
-
(6,980)
(6,610)
-
(6,610)
(125,789)
(655,121)
(780,910)
(784,080)
-
(784,080)
Net current liabilities
(81,839)
(655,121)
(736,960)
(729,718)
-
(729,718)
Total assets less current liabilities
2,230,880
(655,121)
1,575,759
1,583,001
-
1,583,001
Creditors due after one year
Borrowings
1
(1,929,212)
655,121
(1,274,091)
(1,171,367)
-
(1,171,367)
Net assets
301,668
-
301,668
411,634
-
411,634
Equity
Share capital
800
-
800
800
-
800
Profit and loss
300,868
-
300,868
410,834
-
410,834
Total equity
301,668
-
301,668
411,634
-
411,634
BARAS INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
8
Reconciliations on adoption of FRS 102
(Continued)
- 7 -
Reconciliation of profit for the financial period
Year ended 30 November 2016
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
Revenue
193,449
-
193,449
Administrative expenses
(13,225)
-
(13,225)
Finance costs
(46,018)
-
(46,018)
Taxation
(24,240)
-
(24,240)
Profit for the financial period
109,966
-
109,966
Notes to reconciliations on adoption of FRS 102
1 - Director loans
The loans from each director totalling £655,121 have been reclassified as borrowings due within one year as no formal repayment terms are in place.
2017-11-30
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George Brewster
Ian Cameron
Ian Fergusson
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