Graceplan Property Management Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01823244 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 March 2019

for

Graceplan Property Management Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

5

Other Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

Mr M A Kalo

Dr T Khayat

Mr N Saigol

Mr K R Sanbar

REGISTERED OFFICE:

128 Ebury Street

London

SW1W9QQ

REGISTERED NUMBER:

01823244 (England and Wales)

AUDITORS:

Rawi & Co Associates Ltd

128 Ebury Street

London

SW1W 9QQ

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

Mr M A Kalo

Dr T Khayat

Mr N Saigol

Mr K R Sanbar

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Report of the Directors 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 judgements and accounting estimates that are reasonable and prudent;

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which

the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make

himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Rawi & Co Associates Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr M A Kalo - Director

5 December 2019

Opinion

We have audited the financial statements of Graceplan Property Management Limited (the 'company') for the year ended

31 March 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity

and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that

has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2019 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of

the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors,

but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our

report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider

whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other

information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we

are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not

identified material misstatements in the Report of the Directors.

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 take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page two, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either

intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of

assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when

it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, 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 members those matters we are required to state to them in a

Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have

formed.

Rajnikant Chhotabhai Patel (Senior Statutory Auditor)

for and on behalf of Rawi & Co Associates Ltd

128 Ebury Street

London

SW1W 9QQ

6 December 2019

TURNOVER

280,918

265,250

Administrative expenses

(337,576

)

(225,514

)

OPERATING (LOSS)/PROFIT

4

(56,658

)

39,736

Profit/loss on sale of investm

ent property

5

350,000

-

293,342

39,736

Interest receivable and similar income

1,213

483

294,555

40,219

Interest payable and similar expenses

-

(72

)

PROFIT BEFORE TAXATION

294,555

40,147

Tax on profit

6

(49,289

)

(7,714

)

PROFIT FOR THE FINANCIAL YEAR

245,266

32,433

PROFIT FOR THE YEAR

245,266

32,433

OTHER COMPREHENSIVE INCOME

Gain on revaluation of land and building

-

250,000

Income tax relating to other comprehensive income

-

(32,377

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

217,623

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

245,266

250,056

FIXED ASSETS

Tangible assets

7

54,593

60,583

Investments

8

2

2

Investment property

9

4,446,417

5,341,970

4,501,012

5,402,555

CURRENT ASSETS

Debtors

10

138,045

108,351

Cash at bank

88,743

146,027

226,788

254,378

CREDITORS

Amounts falling due within one year

11

(85,404

)

(15,878

)

NET CURRENT ASSETS

141,384

238,500

TOTAL ASSETS LESS CURRENT LIABILITIES

4,642,396

5,641,055

PROVISIONS FOR LIABILITIES

(571,967

)

(665,455

)

NET ASSETS

4,070,429

4,975,600

CAPITAL AND RESERVES

Called up share capital

297,600

297,600

Fair value reserve

12

2,494,741

3,645,178

Retained earnings

1,278,088

1,032,822

4,070,429

4,975,600

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors on 5 December 2019 and were signed on its behalf by:

Mr M A Kalo - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

297,600

1,000,389

3,427,555

4,725,544

Changes in equity

Total comprehensive income

-

32,433

217,623

250,056

Balance at 31 March 2018

297,600

1,032,822

3,645,178

4,975,600

Changes in equity

Total comprehensive income

-

245,266

(1,150,437

)

(905,171

)

Balance at 31 March 2019

297,600

1,278,088

2,494,741

4,070,429

1.	STATUTORY INFORMATION

Graceplan Property Management Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and in accordance with the accounting

policies set out below. These financial statements have been prepared in accordance with FRS 102 Section 1A - The Financial

Reporting Standard applicable in the UK and Republic of Ireland and Companies Act 2006.

The company is the parent undertaking of a small group and as such is not required by the Companies Act 2006 to prepare

group accounts. These financial statements therefore present information about the company as an individual undertaking and

not about its group.

Turnover

Turnover represent rental income receivable from parking space, storage and mobile phone masts. Revenue is recognised on an

accrual basis in accordance with the substance of the relevant agreement.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of

each asset evenly over its expected useful life, as follows:

Plant and machinery

10% / 20% straight line

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an

impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected assets is estimated and

compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated

recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses,the carry amount of the asset is increased to the revised estimate of its recoverable

amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset

in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less any accumulated impairment losses. Changes in fair value are included in

the profit and loss account.

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.

Investment properties are recognised initially at cost.

Subsequent to initial recognition

i.Investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains

or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise; and

ii. no depreciation is provided in respect of investment properties applying the fair value model.

If a reliable measure is not available without undue cost or effort for an item of investment property, this item is thereafter

accounted for as tangible fixed assets in accordance with FRS102 section 17 until a reliable measure of fair value becomes

available.

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.

Financial instruments

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price,

unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future

receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost as assessed for objective evidence of

impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of

the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or

loss.

Financial assets are derecognised when the contractual rights to the cash flows from the assets expire or are settled.

Basic financial liabilities, including trade and other payables 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 receipts discounted at a market rate of interest.

Preference shares, where there are enforceable obligations to redeem those shares, would constitute debt capital of the company

and be shown within creditors. Preference shares without such obligations would be shown as part of shareholders' fund

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,

cancelled or expires.

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and

doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and

subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and

doubtful debts.

Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and ot financial liabilities are

initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined

using the effective interest method.

Provision for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is

probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the

obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end

of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Going Concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for

the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial

statements.

Consolidated financial statements

The Company and its subsidiary undertaking comprise a small-sized group. The Company has therefore taken advantage of the

exemptions provided by section 399 of the Companies Act 2006 from the requirement to prepare consolidated financial

statements on the basis that it is subject to the small companies regime. Consequently, these financial statements present the

financial position and financial performance of the Company as a single entity.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the

financial statements where these judgements and estimates have been made include the useful lives and carrying value of

Investment property, although these estimates and associated assumptions are based on historical experience and management's

best knowledge of current events and action. The estimates and underlying assumptions are reviewed on an ongoing basis.

4.	OPERATING (LOSS)/PROFIT

The operating loss (2018 - operating profit) is stated after charging:

31.3.19

31.3.18

£

£

Depreciation - owned assets

16,190

14,150

5.	EXCEPTIONAL ITEMS

31.3.19

31.3.18

£

£

Profit/loss on sale of investm

ent property

350,000

-

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.19

31.3.18

£

£

Current tax:

UK corporation tax

50,033

-

Deferred tax

(744

)

7,714

Tax on profit

49,289

7,714

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.19

31.3.18

£

£

Profit before tax

294,555

40,147

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

55,965

7,628

Effects of:

Expenses not deductible for tax purposes

10,202

(31

)

Capital allowances in excess of depreciation

(9,592

)

(12,112

)

Utilisation of tax losses

9,924

-

Adjustments to tax charge in respect of previous periods

-

4,515

Deferred tax adjustment

(744

)

7,714

Other adjustment

(16,466

)

-

Total tax charge

49,289

7,714

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2019.

7.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2018

160,560

Additions

10,200

At 31 March 2019

170,760

DEPRECIATION

At 1 April 2018

99,977

Charge for year

16,190

At 31 March 2019

116,167

NET BOOK VALUE

At 31 March 2019

54,593

At 31 March 2018

60,583

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2018

and 31 March 2019

2

NET BOOK VALUE

At 31 March 2019

2

At 31 March 2018

2

The company has the following subsidiary undertaking:

Company

Shares held class

Holding

Capital and reserves

Profit (loss for the year

)

£

£

Rutland Court (Tenants) Limited

Ordinary

52%

48

9.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2018

5,341,970

Additions

347,627

Disposals

(350,000

)

Revaluations

(893,180

)

At 31 March 2019

4,446,417

NET BOOK VALUE

At 31 March 2019

4,446,417

At 31 March 2018

5,341,970

The investment property was revalued on 31 March 2019 by the directors. The basis of this valuation was open market value.

The investment property has a current value of £4,446,417 (2018: £5,341,970). In the opinion of the directors the market value

at the balancesheet date is not materially different to this valuation.

.

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Trade debtors

1,724

11,142

Amounts owed by group undertakings

126,710

97,209

Other debtors

9,611

-

138,045

108,351

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Trade creditors

35,371

15,878

Taxation and social security

50,033

-

85,404

15,878

12.

RESERVES

Fair

value

reserve

£

At 1 April 2018

3,645,178

Gain on revaluation of land

and buildings

(893,180

)

Deferred tax arising on the

revaluation of investment prop

erty

92,743

Revaluation reserve related to

disposal of investment propert

y

(350,000

)

At 31 March 2019

2,494,741

13.	RELATED PARTY DISCLOSURES

2019

2018

£

£

Rutland Court (Tenants) Limited

Fellow subsidiary company included in debtors

126,710

97,209

Esskay Management Services LLP

(Managing agent)

Management fees paid

11,760

11,328

Professional fees paid

21,600

14.	ULTIMATE CONTROLLING PARTY

There is no one ultimate controlling party, the shareholders controlling the company.