Rainbow Estates Limited Filleted accounts for Companies House (small and micro)

RAINBOW ESTATES LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07930620

RAINBOW ESTATES LIMITED

UNAUDITED FINANCIAL STATEMENTS

31 January 2020

RAINBOW ESTATES LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 JANUARY 2020

Contents	Pages

Officers and professional advisers	1

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements	2

Statement of financial position	3 to 4

Notes to the financial statements	5 to 9

RAINBOW ESTATES LIMITED

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	D Davies
	N L Bailey

Registered office	Hanover Buildings
	11-13 Hanover Street
	Liverpool
	Merseyside
	United Kingdom
	L1 3DN

Accountants	ERC Accountants & Business Advisers Limited
	Chartered accountants
	Hanover Buildings
	11-13 Hanover Street
	Liverpool
	L1 3DN

RAINBOW ESTATES LIMITED

CHARTERED ACCOUNTANT'S REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF RAINBOW ESTATES LIMITED

YEAR ENDED 31 JANUARY 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rainbow Estates Limited for the year ended 31 January 2020, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Rainbow Estates Limited, as a body, in accordance with the terms of our engagement letter dated 15 January 2020. Our work has been undertaken solely to prepare for your approval the financial statements of Rainbow Estates Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Rainbow Estates Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Rainbow Estates Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Rainbow Estates Limited. You consider that Rainbow Estates Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Rainbow Estates Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

ERC Accountants & Business Advisers Limited Chartered accountants

Hanover Buildings 11-13 Hanover Street Liverpool L1 3DN

21 February 2020

RAINBOW ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION

31 January 2020

	2020	2019
Note	£	£

FIXED ASSETS

Tangible assets	6	950,871	951,161

CURRENT ASSETS

Debtors	7	4	4
Cash at bank and in hand		2,781	2,193
		-------	-------
		2,785	2,197

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR	8	298,387	312,074
		----------	----------
NET CURRENT LIABILITIES		295,602	309,877
		----------	----------
TOTAL ASSETS LESS CURRENT LIABILITIES		655,269	641,284

PROVISIONS

Taxation including deferred tax	122,840	123,490
	----------	----------
NET ASSETS	532,429	517,794
	----------	----------

CAPITAL AND RESERVES

Called up share capital	100	100
Profit and loss account	532,329	517,694
	----------	----------
SHAREHOLDERS FUNDS	532,429	517,794
	----------	----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 January 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

RAINBOW ESTATES LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 January 2020

These financial statements were approved by the board of directors and authorised for issue on 21 February 2020 , and are signed on behalf of the board by:

D Davies

Director

Company registration number: 07930620

RAINBOW ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JANUARY 2020

1. GENERAL INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hanover Buildings, 11-13 Hanover Street, Liverpool, Merseyside, L1 3DN, United Kingdom.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

The turnover shown in the profit and loss account represents amounts invoiced during the year in relation to residential property rental.

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Computer Equipment	-	25% reducing balance

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 2 (2019: 2 ).

5. TAX ON PROFIT/(LOSS)

Major components of tax income

	2020	2019
	£	£

Deferred tax:

Origination and reversal of timing differences	( 650)	( 18,115)
	----	---------
Tax on profit/(loss)	( 650)	( 18,115)
	----	---------

6. TANGIBLE ASSETS

Freehold property	Equipment	Total
£	£	£

Cost
At 1 February 2019 and 31 January 2020	950,000	1,548	951,548
	----------	-------	----------
Depreciation
At 1 February 2019	–	387	387
Charge for the year	–	290	290
	----------	-------	----------
At 31 January 2020	–	677	677
	----------	-------	----------
Carrying amount
At 31 January 2020	950,000	871	950,871
	----------	-------	----------
At 31 January 2019	950,000	1,161	951,161
	----------	-------	----------

The investment properties were valued at £950,000 which is considered to be their fair value at the 31 January 2019 by the director, Mr D Davies .

7. DEBTORS

	2020	2019
	£	£

Trade debtors	4	4
	----	----

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2020	2019
	£	£

Trade creditors	–	157
Social security and other taxes	105	141
Other creditors	298,282	311,776
	----------	----------
	298,387	312,074
	----------	----------

The bank loan is secured by fixed and floating charges dated 20 October 2014 over all the company's undertaking, property, rights and assets whatsoever and wheresoever both present and future.

9. GOING CONCERN

The directories have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

10. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

No directors received advances, credits or guarantee during the current or previous accounting periods.

11. RELATED PARTY TRANSACTIONS

The following related party transactions were undertaken during the year: A director introduced £4,600 and withdrew £18,058 (2019: introduced £157,000 and withdrew £4,273). At 31 January 2020 the balance payable was £262,600 (2019: payable £276,058). A director up until 22.05.2018 introduced £Nil (2019: introduced £Nil). At 31 January 2020 the balance payable was £14,750 (2019: payable £14,750). A director up until 24.08.2018 introduced £Nil (2019: introduced £124). At 31 January 2020 the balance payable was £15,374 (2019: payable £15,374). A director introduced £Nil and withdrew £45 (2019: introduced £Nil and withdrew £472). At 31 January 2020 the balance payable was £4,483 (2019: payable £4,528). Dividends were paid to the directors in respect of their shareholders totalling £Nil (2019: £Nil). No further transactions with related parties were undertaken, other those under normal market conditions, such as are required to be disclosed in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

12. PROFIT AND LOSS RESERVE ACCOUNT

	2020	2019
	£	£
Profit and loss distributable	517,695	545,077
Profit and loss non-distributable	(671,937)	(671,937)
	-------------	-------------
Reserves carried forward	1,189,632	1,217,014
	-------------	-------------