ACCOUNTS - Final Accounts preparation

MALVIN INVESTMENT COMPANY LIMITED - Company Information

2013-01-01 false true As more fully explained in note 5, the investment property is included in the balance sheet at its 1989 valuation of £760,000 plus the cost of the subsequent acquisition. However in our opinion the property should be included at its open market value in accordance with accounting treatment of investment properties as set out in the Financial Reporting Standard for Smaller Entities (effective April 2008). Due to the uncertainty of the valuation, we cannot express an opinion on the amount of which the property is stated in the balance sheet. If the opening value of the property was understated in the balance sheet, the profit on disposals of fixed assets (see note 2) would have been overstated. The extent of this overstatement cannot be quantified. QUALIFIED OPINION ON FINANCIAL STATEMENTS Except for the effects of the matter described in the basis for qualified opinion paragraph above, in our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 31 December 2013 and of its profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and have been prepared in accordance with the requirements of the Companies Act 2006.2013-12-312013-12-31Turnover represents the gross amount of rent charged. Rental income is recognised on the basis of the rental period. Revenue is deferred where the rental period invoiced falls into future accounting periods.trueEach of the persons who are directors at the time when this directors' report is approved has confirmed that: so far as that director is aware, there is no relevant audit information of which the company's auditors are unaware, and that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information. 00557666 2013-01-01 2013-12-31 00557666 2012-01-01 2012-12-31 00557666 2013-12-31 00557666 2012-12-31 00557666 d:CompanySecretary 2013-01-01 2013-12-31 00557666 d:OrdinaryShareClass1 2013-12-31 00557666 d:OrdinaryShareClass1 2012-12-31 00557666 d:OrdinaryShareClass1 2013-01-01 2013-12-31 00557666 d:Director1 2013-01-01 2013-12-31 00557666 d:Director2 2013-01-01 2013-12-31 00557666 d:EntityAccountantsOrAuditors 2013-12-31 00557666 d:RegisteredOffice 2013-01-01 2013-12-31 00557666 c:ProvisionsForDeferredTaxation 2012-01-01 00557666 c:ProvisionsForDeferredTaxation 2012-01-01 2012-12-31 00557666 d:EntityAccountantsOrAuditors 2012-01-01 2012-12-31 00557666 d:EntityAccountantsOrAuditors 2013-01-01 2013-12-31 00557666 c:InvestmentProperties c:OwnedOrFreeholdTangibleFixedAssets 2013-12-31 00557666 c:InvestmentProperties 2012-12-31 00557666 c:InvestmentProperties 2013-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 00557666

MALVIN INVESTMENT COMPANY LIMITED

AUDITED

DIRECTORS' REPORT AND
FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 DECEMBER 2013

MALVIN INVESTMENT COMPANY LIMITED

COMPANY INFORMATION

DIRECTORS	Mr E N Reed
	Mr P R Sykes


COMPANY SECRETARY	Ms B R Ally


REGISTERED NUMBER	00557666


REGISTERED OFFICE	10 Norwich Street
	London
	EC4A 1BD


INDEPENDENT AUDITORS	Wellden Turnbull LLP
	Chartered Accountants and Statutory Auditors
	180 Piccadilly
	London
	W1J 9HF

MALVIN INVESTMENT COMPANY LIMITED

CONTENTS

	Page
Directors' report	1 - 2
Independent auditors' report	3 - 4
Profit and loss account	5
Balance sheet	6
Notes to the financial statements	7 - 10

MALVIN INVESTMENT COMPANY LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2013

The directors present their report and the financial statements for the year ended 31 December 2013.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

·select suitable accounting policies and then apply them consistently;

·make judgments and accounting estimates that are reasonable and prudent;

·prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PRINCIPAL ACTIVITY

The principal activity of the company during the year under review continued to be that of property investment.

DIRECTORS

The directors who served during the year were:

Mr E N Reed

Mr P R Sykes

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

·so far as that director is aware, there is no relevant audit information of which the company's auditors are unaware, and

·that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 1

MALVIN INVESTMENT COMPANY LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2013

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 4 September 2014 and signed on its behalf.

Mr P R Sykes

Director

Page 2

MALVIN INVESTMENT COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MALVIN INVESTMENT COMPANY LIMITED

We have audited the financial statements of Malvin Investment Company Limited for the year ended 31 December 2013, set out on pages 5 to 10. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

This report is made solely to the company's shareholders, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's shareholders those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

BASIS FOR QUALIFIED OPINION ON THE FINANCIAL STATEMENTS

As more fully explained in note 5, the investment property is included in the balance sheet at its 1989 valuation of £760,000 plus the cost of the subsequent acquisition.

However in our opinion the property should be included at its open market value in accordance with accounting treatment of investment properties as set out in the Financial Reporting Standard for Smaller Entities (effective April 2008).

Due to the uncertainty of the valuation, we cannot express an opinion on the amount of which the property is stated in the balance sheet.

If the opening value of the property was understated in the balance sheet, the profit on disposals of fixed assets (see note 2) would have been overstated. The extent of this overstatement cannot be quantified.

QUALIFIED OPINION ON FINANCIAL STATEMENTS

Except for the effects of the matter described in the basis for qualified opinion paragraph above, in our opinion the financial statements:

·give a true and fair view of the state of the company's affairs as at 31 December 2013 and of its profit for the year then ended;

·have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

·have been prepared in accordance with the requirements of the Companies Act 2006.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 3

MALVIN INVESTMENT COMPANY LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MALVIN INVESTMENT COMPANY LIMITED

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

·adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

·the financial statements are not in agreement with the accounting records and returns; or

·certain disclosures of directors' remuneration specified by law are not made; or

·we have not received all the information and explanations we require for our audit; or

·the directors were not entitled to prepare the financial statements in accordance with the small companies regime and to take advantage of the small companies' exemption from the requirement to prepare a strategic report or in preparing the directors' report.

Robin John FCA CTA (senior statutory auditor)

for and on behalf of

Wellden Turnbull LLP

Chartered Accountants

Statutory Auditors

180 Piccadilly

London

W1J 9HF

5 September 2014

Page 4

MALVIN INVESTMENT COMPANY LIMITED

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2013

		2013	2012
	Note	£	£
TURNOVER	1	55,200	55,305
Administrative expenses		(76,566)	(62,078)
Other operating income	2	5,020,000	5,020,000
OPERATING PROFIT	3	4,998,634	5,013,227
Interest receivable and similar income		13,669	6,420
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION		5,012,303	5,019,647
Tax on profit on ordinary activities	4	(1,142,818)	(1,109,381)
PROFIT FOR THE FINANCIAL YEAR	10	3,869,485	3,910,266

The notes on pages 7 to 10 form part of these financial statements.

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MALVIN INVESTMENT COMPANY LIMITED

REGISTERED NUMBER: 00557666

BALANCE SHEET

AS AT 31 DECEMBER 2013

2013

2012

	Note	£	£	£	£
FIXED ASSETS
Investment property	5		917,075		917,075

CURRENT ASSETS
Debtors	6	27,604		13,805
Cash at bank		9,153,021		5,205,783

		9,180,625		5,219,588
CREDITORS: amounts falling due within one year	7	(1,176,030)		(1,084,478)
NET CURRENT ASSETS			8,004,595		4,135,110

NET ASSETS

8,921,670

5,052,185

CAPITAL AND RESERVES
Called up share capital	9	50,000	50,000
Revaluation reserve	10	712,650	712,650
Other reserves	10	32,990	32,990
Profit and loss account	10	8,126,030	4,256,545

SHAREHOLDERS' FUNDS

8,921,670

5,052,185

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 September 2014.

Mr E N Reed	Mr P R Sykes
Director	Director

The notes on pages 7 to 10 form part of these financial statements.

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MALVIN INVESTMENT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2013

1.ACCOUNTING POLICIES

	1.1	Basis of preparation of financial statements
		The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

	1.2	Turnover
		Turnover represents the gross amount of rent charged. Rental income is recognised on the basis of the rental period. Revenue is deferred where the rental period invoiced falls into future accounting periods.

	1.3	Investment properties
		Investment properties are included in the balance sheet at cost in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) and are not depreciated.

	1.4	Deferred taxation
		Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

		A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted.

2.OTHER OPERATING INCOME

	2013	2012
	£	£
Profit on disposal of fixed assets	5,020,000	5,020,000

In 2013, one of the flats within the investment property had their lease extended for a further period of 90 years.

3.OPERATING PROFIT

The operating profit is stated after charging:

	2013	2012
	£	£
Auditors' remuneration	3,000	3,500

During the year, no director received any emoluments (2012 - £NIL).

Page 7

MALVIN INVESTMENT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2013

4.TAXATION

			2013	2012
			£	£

Analysis of tax charge in the year
Current tax
UK corporation tax charge on profit for the year	1,142,818	1,068,880

Deferred tax (see note 8)
Tax losses	-	40,501

Tax on profit on ordinary activities	1,142,818	1,109,381

There were no factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of 23% (2012 - 24%).

There were no factors that may affect future tax charges.

5.INVESTMENT PROPERTY

		Freehold investment property
		£
	Valuation
	At 1 January 2013 and 31 December 2013	917,075

	Comprising
	Cost	204,425
	Revaluation surplus/(deficit):
	1989	712,650
	At 31 December 2013	917,075

6.DEBTORS

	2013	2012
	£	£

Trade debtors	27,604	13,805

Page 8

MALVIN INVESTMENT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2013

7.CREDITORS:
Amounts falling due within one year

	2013	2012
	£	£
Trade creditors	-	211
Corporation tax	1,142,818	1,068,880
Other creditors	33,212	15,387


	1,176,030	1,084,478

8.DEFERRED TAXATION

	2013	2012
	£	£

At beginning of year	-	(40,501)
Charge for year (P&L)	-	40,501


At end of year	-	-

Deferred tax is not provided on timing differences arising from the revaluation of fixed assets in the financial statements. At the year end the amount of tax not provided for was £125,758 (2012 - £111,283).

9.SHARE CAPITAL

	2013	2012
	£	£
Allotted, called up and fully paid

100,000 Ordinary shares of £0.50 each	50,000	50,000

10.RESERVES

	Revaluation reserve	Other reserves	Profit and loss account
	£	£	£

At 1 January 2013	712,650	32,990	4,256,545
Profit for the financial year			3,869,485


At 31 December 2013	712,650	32,990	8,126,030

Page 9

MALVIN INVESTMENT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2013

11.RELATED PARTY TRANSACTIONS

Mr P R Sykes, a director of the company, is a partner of Moore Stephens LLP, Chartered Accountants, who have provided professional services to the value of £27,366 (2012 - £15,080) during the year.

Mr E N Reed, a director of the company, is a partner of Macfarlanes Solicitors, who have provided legal services to the value of £38,773 (2012 - £39,104) during the year.

The company's cash at bank and in hand figure of £9,153,021 (2012 - £5,205,783) is held in a client bank account of Macfarlanes Solicitors.

12.ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The company is a subsidiary undertaking of Greenwich Securities S.A, a company incorporated in Panama. The ultimate controlling party of Greenwich Securities S.A is Northern Trust Fiduciary Services (Guernsey) Limited as a trustee of a settlement dated 25 April 1968 known as the Stanley Smith Settlement.

Page 10