Megachoice Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02890762 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

MEGACHOICE LIMITED

Page

Company Information

1

Chartered Accountants' Report

2

Statement of Financial Position

3

Notes to the Financial Statements

5

DIRECTORS:

Mr K K Bhudia

Mrs M K Bhudia

REGISTERED OFFICE:

505 Pinner Road

Harrow

Middlesex

HA2 6EH

REGISTERED NUMBER:

02890762 (England and Wales)

ACCOUNTANTS:

STGCA LLP t/a Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of Financial Position. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Megachoice Limited for the year ended 31 December 2021 which comprise the Income Statement, 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Megachoice Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Megachoice Limited and state those matters that we have agreed to state to the Board of Directors of Megachoice Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Megachoice Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Megachoice 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 Megachoice Limited. You consider that Megachoice 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 Megachoice 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.

STGCA LLP t/a Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

26 September 2022

FIXED ASSETS

Property, plant and equipment

4

153

180

Investments

5

561,469

522,139

Investment property

6

3,194,000

2,926,000

3,755,622

3,448,319

CURRENT ASSETS

Debtors

7

228,439

248,439

Cash at bank and in hand

270,612

275,469

499,051

523,908

CREDITORS

Amounts falling due within one year

8

70,780

64,929

NET CURRENT ASSETS

428,271

458,979

TOTAL ASSETS LESS CURRENT LIABILITIES

4,183,893

3,907,298

CREDITORS

Amounts falling due after more than one year

9

(513,023

)

(579,938

)

PROVISIONS FOR LIABILITIES

(245,156

)

(339,364

)

NET ASSETS

3,425,714

2,987,996

CAPITAL AND RESERVES

Called up share capital

11

30,000

30,000

Fair value reserve

12

1,531,249

1,357,458

Retained earnings

12

1,864,465

1,600,538

SHAREHOLDERS' FUNDS

3,425,714

2,987,996

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 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 applicable to companies subject to the small companies regime.

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

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2022 and were signed on its behalf by:

Mr K K Bhudia - Director

1.	STATUTORY INFORMATION

Megachoice 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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover represents rent receivable, net of value added tax.

Turnover is recognised when the company has a right to consideration.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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 statement of financial position date.

Deferred tax

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

Fixed asset investments

Fixed asset investments are shown at costs less any provision for diminution in value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2020 - 3 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

and

fittings

£

COST

At 1 January 2021

and 31 December 2021

1,657

DEPRECIATION

At 1 January 2021

1,477

Charge for year

27

At 31 December 2021

1,504

NET BOOK VALUE

At 31 December 2021

153

At 31 December 2020

180

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2021

523,134

Additions

198,545

Disposals

(152,524

)

Share of profit/(loss)

(6,691

)

At 31 December 2021

562,464

PROVISIONS

At 1 January 2021

and 31 December 2021

995

NET BOOK VALUE

At 31 December 2021

561,469

At 31 December 2020

522,139

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2021

2,926,000

Revaluations

268,000

At 31 December 2021

3,194,000

NET BOOK VALUE

At 31 December 2021

3,194,000

At 31 December 2020

2,926,000

Fair value at 31 December 2021 is represented by:

£

Valuation in 2016

1,696,822

Valuation in 2021

268,000

Cost

1,229,178

3,194,000

The investment properties were valued on an open market basis on 31 December 2021 by the directors .

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Amounts owed by connected companies

228,378

248,378

Tax

61

61

228,439

248,439

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

33,041

33,041

Tax

16,883

5,905

Social security and other taxes

-

1,291

Other creditors

17,736

17,852

Accrued expenses

3,120

6,840

70,780

64,929

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 1-2 years

33,041

33,041

Bank loans - 2-5 years

99,108

99,108

Bank loans more 5 yr by instal

96,474

111,504

Other loans - 2-5 years

284,400

336,285

513,023

579,938

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

96,474

111,504

10.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

261,664

276,694

The bank loan is secured against assets of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

30,000

Ordinary

1

30,000

30,000

12.

RESERVES

Fair

Retained

value

earnings

reserve

Totals

£

£

£

At 1 January 2021

1,600,538

1,357,458

2,957,996

Profit for the year

452,118

452,118

Dividends

(14,400

)

(14,400

)

Transfer

(173,791

)

173,791

-

At 31 December 2021

1,864,465

1,531,249

3,395,714

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year the company paid dividends of £6,000 (2020: £18,750) to the directors.

14.	RELATED PARTY DISCLOSURES

At the year end, the company was owed £228,378 (2020: £248,378) by Flexgrove Properties Ltd, a company in which the directors have a beneficial interest. The amount owed is recoverable on demand.