KRNS Properties Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06781096 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

KRNS PROPERTIES LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

K C Suri

Mrs S Suri

Miss R Suri

S Suri

N Suri

SECRETARY:

K C Suri

REGISTERED OFFICE:

Sital House

3-6 Cattle Market

Loughborough

Leicestershire

LE11 3DL

REGISTERED NUMBER:

06781096 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2

Charnwood Edge Business Park

Syston Road

Leicester

LE7 4UZ

FIXED ASSETS

Tangible assets

4

136,153

283,489

Investment property

5

25,922,451

25,123,533

26,058,604

25,407,022

CURRENT ASSETS

Debtors

6

3,907,650

4,914,356

Cash at bank

35,666

-

3,943,316

4,914,356

CREDITORS

Amounts falling due within one year

7

(4,953,094

)

(3,088,129

)

NET CURRENT (LIABILITIES)/ASSETS

(1,009,778

)

1,826,227

TOTAL ASSETS LESS CURRENT LIABILITIES

25,048,826

27,233,249

CREDITORS

Amounts falling due after more than one year

8

(19,216,223

)

(22,989,584

)

PROVISIONS FOR LIABILITIES

(83,212

)

(78,915

)

NET ASSETS

5,749,391

4,164,750

CAPITAL AND RESERVES

Called up share capital

20

20

Share premium

14,985

14,985

Revaluation reserve

465,370

465,370

Retained earnings

5,269,016

3,684,375

5,749,391

4,164,750

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company 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 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors on 31 August 2018 and were signed on its behalf by:

K C Suri - Director

1.	STATUTORY INFORMATION

KRNS Properties Ltd is a limited company, limited by shares, incorporated in England and Wales. It's registered

office address is Sital House, 3 - 6 Cattle Market, Loughbrough, LE11 3DL and it's registered number is

06781096.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents amounts receivable net of VAT. Rent receivable is invoiced a quarter in advance and

appropriate accounting timing adjustments are made to defer the income as necessary. Car parking income is

recognised on a daily basis.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of

depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their

useful lives on the following bases:

Office equipment

10% on cost

Fixtures, fittings & equipment

10% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds

and the carrying value of the asset, and is credited or charged to profit or loss .

Investment property

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. The surplus or deficit on revaluation is recognised in the profit and loss

account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The Company only enters into basic financial instruments 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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an

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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related

parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less

any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2016 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Office

fittings &

equipment

equipment

Totals

£

£

£

COST

At 1 January 2017

12,448

308,970

321,418

Disposals

-

(130,000

)

(130,000

)

At 31 December 2017

12,448

178,970

191,418

DEPRECIATION

At 1 January 2017

3,615

34,314

37,929

Charge for year

1,245

17,897

19,142

Eliminated on disposal

-

(1,806

)

(1,806

)

At 31 December 2017

4,860

50,405

55,265

NET BOOK VALUE

At 31 December 2017

7,588

128,565

136,153

At 31 December 2016

8,833

274,656

283,489

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2017

25,123,533

Additions

798,918

At 31 December 2017

25,922,451

NET BOOK VALUE

At 31 December 2017

25,922,451

At 31 December 2016

25,123,533

At the year end, the investment property acquired was on an open market basis for existing use. The remainder

of the investment properties have not been revalued in the year. In the opinion of the directors the current value

of the investment properties reflects their open market value.

On a historical cost basis these would have been included at an original cost of £25,622,855 (2016 -

£24,658,163).

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

220,518

82,824

Other debtors

3,199,637

4,278,882

Prepayments and accrued income

487,495

552,650

3,907,650

4,914,356

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

1,135,000

1,616,269

Trade creditors

224,473

184,756

Corporation tax

384,909

311,620

Social security and other taxes

3,657

-

VAT

253,292

244,842

Other creditors

2,332,746

140,795

Accruals and deferred income

619,017

589,847

4,953,094

3,088,129

The bank loans and overdraft are secured on the investments properties.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

15,430,007

15,442,007

Directors' loan accounts

3,786,216

7,547,577

19,216,223

22,989,584

The bank loans are secured on the investments properties.

Amounts included above which fall due after five years are as follows:

Payable by instalments

10,890,007

11,186,007