Korpp Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC269794 (Scotland)

Unaudited Financial Statements for the Year Ended 30 June 2020

for

Korpp Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

J Koramshai

SECRETARY:

Ms K Koramshai Richmond

REGISTERED OFFICE:

3 Maryfield Road

Broughty Ferry

Dundee

Tayside

DD5 2JJ

BUSINESS ADDRESS:

Green Acres

The Street

Poynings

West Sussex

BN45 7AQ

REGISTERED NUMBER:

SC269794 (Scotland)

ACCOUNTANTS:

Angela Campbell

Chartered Accountant

3 Maryfield Road

Broughty Ferry

DUNDEE

Tayside

DD5 2JJ

FIXED ASSETS

Investment property

4

97,651

190,042

CURRENT ASSETS

Stocks

68,790

-

Debtors

5

17,000

40,342

Cash at bank

33,952

712

119,742

41,054

CREDITORS

Amounts falling due within one year

6

183,838

20,010

NET CURRENT (LIABILITIES)/ASSETS

(64,096

)

21,044

TOTAL ASSETS LESS CURRENT LIABILITIES

33,555

211,086

CREDITORS

Amounts falling due after more than one year

7

-

(160,512

)

PROVISIONS FOR LIABILITIES

10

-

(9,278

)

NET ASSETS

33,555

41,296

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

11

33,553

41,294

SHAREHOLDERS' FUNDS

33,555

41,296

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 30 June 2021 and were signed by:

J Koramshai - Director

1.	STATUTORY INFORMATION

Korpp Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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

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. as modified by the revaluation of investment property measured at fair value through profit and loss.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgments, estimates and assumptions that effect the amounts reported. These estimates and judgments are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover

Turnover represents the gross rental income received from the investment properties during the year.

Tangible fixed assets

Tangible assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided at a rate calculated to write off the cost of the fixed assets, less the estimated residual value on a straight line basis.

At each balance sheet date, the company reviews the carrying amount of its tangible assets to determine whether there is any indication of impairment loss. In the director's opinion, the value of the tangible assets as shown in the balance sheet reflect the estimated recoverable value of the assets and therefore no further depreciation requires to be accumulated.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. This is in accordance with the FRS 102 1A which, unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for investment potential and not for use by the company so their current value is of prime importance. the departure from the provision of the Companies Act 2006 is required in order to give a true and fair view.

Stocks

The development property stock has been valued at cost including refurbishment costs to the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Going concern

The accounts have been prepared on a going concern basis as the director has underwritten the costs of refurbishment of the properties to be undertaken, with a view to eventual sale of these properties. The director anticipates proceeds of sale of these properties will exceed the value of these properties as shown in the Balance Sheet and therefore the accounts have been prepared on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2019 - 1 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2019

190,042

Additions

28,711

Disposals

(108,102

)

Impairments

(13,000

)

At 30 June 2020

97,651

NET BOOK VALUE

At 30 June 2020

97,651

At 30 June 2019

190,042

Fair value at 30 June 2020 is represented by:

£

Valuation in 2006

79,500

Valuation in 2007

38,750

Valuation in 2008

(40,250

)

Valuation in 2009

(31,000

)

Valuation in 2020

(35,000

)

Cost

85,651

97,651

If the investment property had not been revalued it would have been included at the following historical cost:

30.6.20

30.6.19

£

£

Cost

85,651

143,042

The investment property was valued on an open market basis on 30 June 2020 by the director, J Koramshai .

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Other debtors

17,000

40,342

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Bank loans and overdrafts

80,891

-

Trade creditors

604

7,848

Taxation and social security

-

63

Other creditors

102,343

12,099

183,838

20,010

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.20

30.6.19

£

£

Bank loans

-

160,512

8.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.20

30.6.19

£

£

Bank loans

80,891

160,512

The loans are secured by standard securities over the assets to which the loan relates and also a floating charge over the company's assets.

9.	FINANCIAL INSTRUMENTS

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the futures payments discounted at a market rate of interest for a similar debt instrument.

10.	PROVISIONS FOR LIABILITIES

30.6.20

30.6.19

£

£

Deferred tax

Other timing differences

-

9,278

Deferred

tax

£

Balance at 1 July 2019

9,278

Unused amounts reversed during year

(9,278

)

Balance at 30 June 2020

-

The deferred tax provision was the calculated tax due on estimated gain on the revaluation of the investment properties at fair value. These properties have now been sold and no deferred tax provision is required..(Note 13).

11.

RESERVES

The Retained Earnings account records the retained earnings and also the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. The Retained Earnings Reserve of £33,553 includes £12,000 ( 2019 - £37,722 ) relating to the asset revaluation and fair value movements on assets and is not available for distribution.

12.	RELATED PARTY DISCLOSURES

13.	POST BALANCE SHEET EVENTS

In February 2021, the proceeds of sale of the remaining investment shown in the balance sheet at 30 June 2020 was £102,250, The property purchased for development incurred additional costs of £32,000 and was sold before the date of signing of this report.. An interest free loan from the director has been provided to cover the purchase price and refurbishment costs of the development property.