Lai's Investments LLP - Accounts to registrar - small 17.1

REGISTERED NUMBER: OC305081 (England and Wales)

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

FOR

LAI'S INVESTMENTS LLP

Page

General Information

1

Report of the Members

2

Statement of Financial Position

3

Notes to the Financial Statements

5

DESIGNATED MEMBERS:

K M Lai

Mrs T N Lai

REGISTERED OFFICE:

2 Wood Crescent

Stafford

Staffordshire

ST16 1NX

REGISTERED NUMBER:

OC305081 (England and Wales)

ACCOUNTANTS:

Lawton Bradford Accountants Ltd

Chartered Certified Accountants

Tollgate Court Business Centre

Tollgate Court

Stafford

Staffordshire

ST16 3HS

The members present their report with the financial statements of the LLP for the year ended 31 March 2017.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of the ownership and management of various

investment properties.

DESIGNATED MEMBERS

The designated members during the year under review were:

K M Lai

Mrs T N Lai

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The loss for the year before members' remuneration and profit shares was £23,954 (2016 - £246,700 profit).

MEMBERS' INTERESTS

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such

drawings is set by taking in to account the cash needs of the LLP. Any amounts drawn in excess of the allocated profit

will be repaid to the LLP immediately with interest on the excess at an interest rate of 3% above the base lending rate of

the bank.

During the year there have been no subscriptions or repayments of members capital.

HEDGING

The LLP had an interest rate swap in place for the HSBC bank loan to manage the risk of an increase in interest rates.

This ceased in 2015. A review was undertaken by the FCA in 2015 and a full and final settlement of £160,403 was

accepted by the members and is included in the results of the LLP for the year ended 31 March 2016.

ON BEHALF OF THE MEMBERS:

K M Lai - Designated member

21 December 2017

FIXED ASSETS

Investment property

4

700,000

700,000

CURRENT ASSETS

Debtors

5

989

80,967

Cash at bank

98,775

799,140

99,764

880,107

CREDITORS

Amounts falling due within one year

6

97,434

107,675

NET CURRENT ASSETS

2,330

772,432

TOTAL ASSETS LESS CURRENT LIABILITIES

702,330

1,472,432

CREDITORS

Amounts falling due after more than one year

7

332,945

525,437

NET ASSETS ATTRIBUTABLE TO MEMBERS

369,385

946,995

LOANS AND OTHER DEBTS DUE TO MEMBERS

11

819,682

1,397,292

MEMBERS' OTHER INTERESTS

Capital accounts

10,000

10,000

Fair value reserve

(460,297

)

(460,297

)

369,385

946,995

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

11

819,682

1,397,292

Members' other interests

(450,297

)

(450,297

)

369,385

946,995

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 31 March 2017.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to small LLPs.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP on 21 December 2017 and were signed by:

K M Lai - Designated member

1.	STATUTORY INFORMATION

Lai's Investments LLP is a limited liability partnership, limited by members capital, registered in England and

Wales. The company's registered number is OC305081 and the registered office address is 2 Wood Crescent,

Stafford, Staffordshire, ST16 1NX.

The principal activity during the year was that of the ownership and management of investment property.

The presentation of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities"

of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires

the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and

disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of

revenues and expenses during the reporting period. Actual results in the future could differ from those estimates.

Management considers that certain accounting assumptions relating to revenue and provisions are its critical

accounting policies.

Turnover

Turnover represents the value, net of value added tax, of rental income. Turnover is recognised on an accruals

basis, dependent on rental agreements.

Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties

are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value

can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and

losses arising from changes in the fair value of investment properties are included in profit or loss in the period

in which they arise. The gains/losses are shown separately in the Fair Value Reserve, which is an undistributable

reserve.

Leased assets and obligations

Leases that do not give rights approximating to ownership are "operating leases" and the annual rentals are

charged to the profit and loss account on a straight line basis over the lease term.

Going concern

The key risk to the business is in respect of the occupancy of the property and the servicing of the long term debt.

Rent will be restarted on the property in order to service the loan and a formal lease is in place. The directors

have considered the risks and believe the expected cashflows are adequate to enable the company to meet its

liabilities as they fall due for at least the 12 months from the date of signing the financial statements. For this

reason, the directors have adopted the going concern basis in preparing the financial statements.

Tax provisions

Taxation on the profits of the LLP is solely the liability of individual members. Therefore, neither income tax nor

deferred tax arising in respect of the LLP's profit is included in these financial statements.

Hedging

The LLP had an interest rate swap in place for the HSBC bank loan to manage the risk of an increase in interest

rates. This ceased in 2015. A review was undertaken by the FCA in 2015 and a full and final settlement of

£160,403 was accepted by the members and is included in the results of the LLP for the year ended 31 March

2016.

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2016

and 31 March 2017

700,000

NET BOOK VALUE

At 31 March 2017

700,000

At 31 March 2016

700,000

Cost or valuation at 31 March 2017 is represented by:

£

Valuation in 2012

402,245

Valuation in 2013

195,000

Valuation in 2015

(710,297

)

Valuation in 2016

(347,245

)

Cost

1,160,297

700,000

The company has allowed a charge over the company's assets, including the investment property with a carrying

amount of £700,000, as security for the bank loan.

The property was valued on 9 September 2015 by Chivers Commercial Chartered Surveyors and the valuation is

considered by the directors' to be reasonable as at 31 March 2017.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

-

53,760

Other debtors

989

27,207

989

80,967

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans and overdrafts (see note 8)

92,884

105,176

Other creditors

4,550

2,499

97,434

107,675

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans (see note 8)

332,945

525,437

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

18,345

178,962

8.

LOANS

An analysis of the maturity of loans is given below:

31.3.17

31.3.16

£

£

Amounts falling due within one year or on demand:

Bank loans - less than 1 yr

92,884

105,176

Amounts falling due between one and two years:

Bank loans - 1-2 years

91,673

93,990

Amounts falling due between two and five years:

Bank loans - 2-5 years

222,927

252,485

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

18,345

178,962

The bank loan is repayable by monthly instalments until 2022.

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.3.17

31.3.16

£

£

Within one year

4,704

-

Between one and five years

-

10,349

4,704

10,349

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.17

31.3.16

£

£

Bank loans

425,829

630,613

There is a joint and several guarantee given by the members for £100,000 and a deed of assignment of rental

income.

A legal charge exists over the fixed assets of the LLP.

11.

LOANS AND OTHER DEBTS DUE TO MEMBERS

31.3.17

31.3.16

£

£

Amounts owed to members in respect of profits

819,682

1,397,292

Falling due within one year

819,682

1,397,292

Loans and other debts due to members would rank equally with debts due to ordinary creditors on winding up.

12.	FIRST YEAR ADOPTION

The financial statements for the year ended 31 March 2017 are the first financial statements that comply with

FRS 102 Section 1A "Small Entities". The date of transition is 1 April 2015.

There are no adjustments to the figures required as a result of the transition to FRS 102 Section 1A.

The revaluation reserve relating to the Investment Property has been transfered to a fair value reserve.