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AFRICAN LAKES COMPANY LIMITED
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Company registration number SC463944
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FILING FINANCIAL STATEMENTS
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FOR THE YEAR ENDED 30 NOVEMBER 2018
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AFRICAN LAKES COMPANY LIMITED
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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AFRICAN LAKES COMPANY LIMITED
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COMPANY INFORMATION
1
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AFRICAN LAKES COMPANY LIMITED
REGISTERED NUMBER:
SC463944
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STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2018
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of Section 1A 'Small Entities' of Financial Reporting Standard 102.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
As permitted by Section 444 of the Companies Act 2006, the directors have not delivered to the Registrar a copy of the company's Statement of Income and Retained Earnings for the year ended 30 November 2018.
2
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AFRICAN LAKES COMPANY LIMITED
REGISTERED NUMBER:
SC463944
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STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
30 NOVEMBER 2018
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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J C Elliot
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The notes on pages 4 to 8 form part of these financial statements.
3
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AFRICAN LAKES COMPANY LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
These financial statements are presented in Pounds Sterling (GBP), as that is the currency in which the majority of the company's transactions are denominated. They comprise the financial statements of the company drawn up for the year ended 30 November 2018.
The continuing activity of African Lakes Company Limited ('the company') is that of an investment company.
The company is a private company limited by shares and is incorporated in United Kingdom and registered in Scotland. Details of the registered office can be found on the company information page of these financial statements. The company's registered number is SC463944.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with applicable law and United Kingdom Accounting Standards including Section 1A 'Small Entities' of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice applicable to Small Entities).
The preparation of financial statements in compliance with Section 1A ‘Small Entities’ of FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company accounting policies.
The following principal accounting policies have been applied:
The directors are aware of the net liability position and are of the opinion that the company can meet its obligations as they fall due for the foreseeable future. On this basis, the directors consider it appropriate to prepare the accounts on a going concern basis.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
4
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AFRICAN LAKES COMPANY LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
2.
Accounting policies (continued)
The company only enters into basic financial instrument 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 related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
5
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AFRICAN LAKES COMPANY LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
2.
Accounting policies (continued)
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
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The average monthly number of employees, including directors, during the year was 4
(2017 - 4)
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6
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AFRICAN LAKES COMPANY LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Included within accruals and deferred income is grant funding received from the Scottish Government, which is recognised as per note 2.6.
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Creditors: Amounts falling due after more than one year
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Included within other creditors is £999,000 (2017 - £999,000) of loan notes. The loan notes are unsecured and interest of 5% per annum is charged. These are to be redeemed at the company’s discretion subject to a maturity date of 24 August 2027. No demand will be made to redeem the loan notes in the year ended 30 November 2019. These loan notes were previously, but incorrectly, disclosed as being convertible.
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7
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AFRICAN LAKES COMPANY LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
In the years to 30 November 2016 and 2017, deferred government grants were released at the wrong rate to the statement of income and retained earnings. Amounts released were approximately double what they should have been resulting in results being overstated in the years in question.
As a result, the following amendments have been required in respect of previous periods:
The 2016 loss of £133 has been restated to £25,128 following a reduction to the grant release of £24,896. This resulted in an increase to the accruals and deferred income figure of £24,869 to £213,928 and retained earnings were reduced to a liability position of £25,128.
The 2017 loss for the year has been restated to £54,465 following a reduction to the grant release of £54,563. This has resulted in a further increase to the accruals and deferred income figure of £54,563 resulting in a balance of £973,968 as at 30 November 2017. Retained earnings at that date were reduced to a liability position of £79,593.
8
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