Fairmount Real Estate Company Limited - Period Ending 2021-03-31

Fairmount Real Estate Company Limited

Contents

Company Information	1
Accountants' Report	2
Abridged Statement of Financial Position	3 to 4
Notes to the Unaudited Abridged Financial Statements	5 to 8

Fairmount Real Estate Company Limited

Company Information

Directors

Mrs S C Prior Mr R T Barber Mr D Shah

Company secretary

Mrs S C Prior

Registered office

Ds House 306 High Street Croydon Surrey CR0 1NG

Accountants

DSK Partners LLP Chartered Accountants D S House 306 High Street Croydon Surrey CR0 1NG

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Fairmount Real Estate Company Limited
for the Year Ended 31 March 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Fairmount Real Estate Company Limited for the year ended 31 March 2021 as set out on pages 3 to 8 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
http://www.icaew.com/regulation.

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

It is your duty to ensure that Fairmount Real Estate Company Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Fairmount Real Estate Company Limited. You consider that Fairmount Real Estate Company 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 accounts of Fairmount Real Estate Company 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 accounts.

......................................

DSK Partners LLP
Chartered Accountants
D S House
306 High Street
Croydon
Surrey
CR0 1NG

26 November 2021

Fairmount Real Estate Company Limited

(Registration number: 00386497)
Abridged Statement of Financial Position as at 31 March 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	605,000	605,000
Other financial assets	5	688,111	685,340
		1,293,111	1,290,340
Current assets
Debtors		9,053	11,801
Cash at bank and in hand		71,270	74,342
		80,323	86,143
Prepayments and accrued income		28	58
Creditors: Amounts falling due within one year		(76,651)	(71,632)
Net current assets		3,700	14,569
Total assets less current liabilities		1,296,811	1,304,909
Provisions for liabilities		(145,524)	(145,524)
Accruals and deferred income		(16,140)	(17,175)
Net assets		1,135,147	1,142,210
Capital and reserves
Called up share capital		6,602	6,602
Capital redemption reserve		3,300	3,300
Profit and loss account		1,125,245	1,132,308
Shareholders' funds		1,135,147	1,142,210

For the financial year ending 31 March 2021 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income Statement has been taken.

Fairmount Real Estate Company Limited

(Registration number: 00386497)
Abridged Statement of Financial Position as at 31 March 2021 (continued)

All of the company’s members have consented to the preparation of an Abridged Statement of Financial Position in accordance with Section 444(2A) of the Companies Act 2006.

Approved and authorised by the Board on 26 November 2021 and signed on its behalf by:
 

Mrs S C Prior Company secretary and director

Fairmount Real Estate Company Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Ds House
306 High Street
Croydon
Surrey
CR0 1NG
England

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

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Fairmount Real Estate Company Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2021 (continued)

2	Accounting policies (continued)

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 period end and that are expected to apply to the reversal of the timing difference.
 

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Investment property

Investment property is carried at fair value, derived on 31 March 2017 the market prices for comparable real estate. As at 31 March 2017 the company has taken advantange of the transistional relief to measure fair value at date of transition to FRS102 and use as deemed cost.

No depreciation is provided in respect of investment property which is included in tangible assets.
This treatment conflicts with the requirement of the Companies Act that all properties should be depreciated. The directors consider that, because this property is not held for consumption, but for investment potential it is necessary to adopt the requirement of the section 1A "small entities" of FRS 102 in order to give a true and fair view.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Fairmount Real Estate Company Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2021 (continued)

2	Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities, or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
 
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 1 (2020 - 1).

Fairmount Real Estate Company Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 March 2021 (continued)

4	Tangible assets

	Land and buildings £	Total £
Cost or valuation
At 1 April 2020	605,000	605,000
At 31 March 2021	605,000	605,000
Depreciation
Carrying amount
At 31 March 2021	605,000	605,000
At 31 March 2020	605,000	605,000

In the opinion of the directors, the market value of freehold properties is £605,000 (2020 - £605,000).
 

5	Other financial assets (current and non-current)

	Other Investments £	Total £
Non-current financial assets
Cost or valuation
At 1 April 2020	685,340	685,340
Additions	141,039	141,039
Disposals	(138,268)	(138,268)
At 31 March 2021	688,111	688,111
Impairment
Carrying amount
At 31 March 2021	688,111	688,111

Market value of investments at 31 March 2021 is £773,448 (2020 - £646,838).