PINELARCH_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Pinelarch Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Copper Room, Deva City Office Park, Trinity Way, Manchester, M3 7BG.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Having taken into consideration the impact of the interruption to the company following the Covid-19 coronavirus pandemic, the director has prepared revised financial projections and cash flows forecasts. Whilst there remains significant uncertainty around the impact of the pandemic, at the time of approving the financial statements the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true

The company is renegotiating the bank loans and remains confident this will be concluded satisfactorily.

Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

Investment property comprises No's. 2 - 10 (Even) Water Lane, Wilmslow, Cheshire, SK9 5AA. The fair value of the investment property has been assessed by a director of the company who has been involved in property investment and development for a period in excess of 40 years. In assessing fair values the director has had regard to desk top valuations that have been provided by leading national surveying firms, mortgage valuations conducted and has assessed yield profiles of similar property be it location, covenant strength or length of lease.

On 30 November 2017 the company refinanced the property known as No's. 2 - 10 (Even) Water Lane, Wilmslow, Cheshire, SK9 5AA receiving an advance of £1,474,000 from Octopus Administrative Services Financial Limited and £381,000 from Fern Trading Limited thus enabling it to redeem the commercial mortgage with West Bromwich Commercial Limited in full. The term of each of these loans is 4 years from 30 November 2017 with monthly interest only repayments. Interest is charged on the loan from Octopus Administrative Services Financial Limited at a fixed rate of 5.50% throughout the term of the loan and interest is charged on the loan from Fern Trading Limited at a fixed rate of 9.45% throughout the term of the loan. Both loans are secured by fixed and floating charges over the property known as No's. 2 - 10 (Even) Water Lane, Wilmslow, Cheshire, SK9 5AA.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was qualified and the auditor reported as follows:

Qualified opinion

We have audited the financial statements of Pinelarch Limited (the 'company') for the year ended 30 April 2021 which comprise , the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

•     give a true and fair view of the state of the company's affairs as at 30 April 2021 and of its loss 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 qualified opinion

Within the balance sheet, the Company’s interest in an investment property is shown at £2,600,000, representing the revaluation undertaken during 2017. Management has not updated the fair value of the investment property as at 30 April 2021, which constitutes a departure from Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

It is not practicable to quantify the financial impact of this misstatement.

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 Auditor's 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.

During the year the company entered into the following transactions with related parties:

During the year Pinelarch Limited paid £2,500 (2020: £2,500) in administration and management charges to Carrwood Estates Limited.

Accruals include an administration and management charge of £2,500 (2020: £2,500) due for the year to Carrwood Estates Limited.

Charitable donations of £Nil (2020: £2,262) were made in the year to The Gradel Foundation.

The following amounts were outstanding at the reporting end date:

Amounts due to related parties consists of £25,659 (2020: £11,919) owed to Carrwood Estates Limited, monies paid out of £2,460 and monies received of £16,200 in the year, £60,000 (2020: £60,000) owed to Foregate Investments Limited, £13,044 (2020: £3,670) owed to Plantation Investments Limited, monies paid out of £10,790 and monies received of £20,164 in the year, £Nil (2020: £Nil) owed to St. George Estates Limited and £5,428 (2020: £3,538) owed to Water Lane Investments Limited, monies received of £1,890 in the year.

All balances are inter company transactions with members of the Carrwood Estates Limited group with no specific guarantees or security. There are no bad debts or provisions required.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties consists of £100 (2020: £100) owed by Shirmax Limited, £5,831 (2020: £5,331) owed by St. George Estates Limited, monies paid out of £500 in the year, £1,600 (2020: £1,600) owed by St. George Estates (Management) Limited, monies paid out of £3,000 and monies received of £3,000 in the year and £Nil (2020: £Nil) owed by Water Lane Investments Limited.

All balances are inter company transactions with members of the Carrwood Estates Limited group with no specific guarantees or security. There are no bad debts or provisions required.

Mr A. Gradel is a director of the above companies and is a shareholder in Carrwood Estates Limited and St. George Estates Limited. Mr A. Gradel is also a trustee of The Gradel Foundation.

Included within Creditors: amounts falling due within one year is a balance of £160,000 (2020: £160,000) due to Mr A. Gradel. The balance is unsecured, interest free and repayable on demand.

In the opinion of the director the ultimate controlling party is Mr. A Gradel who owns the majority of the share capital in issue.