Lazari Assets Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05377174 (England and Wales)

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

LAZARI ASSETS LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Ms A Lazari

REGISTERED OFFICE:

Greater London House

Hampstead Road

London

NW1 7QX

REGISTERED NUMBER:

05377174 (England and Wales)

AUDITORS:

Chris Skarparis & Co Ltd

Chartered Accountants and

Statutory Auditors

2nd Floor

10(b) Aldermans Hill

Palmers Green

London

N13 4PJ

FIXED ASSETS

Tangible assets

5

260

346

Investment properties

6

4,630,000

4,420,000

4,630,260

4,420,346

CURRENT ASSETS

Debtors

7

65,448

53,079

Cash at bank

1,551,348

1,450,108

1,616,796

1,503,187

CREDITORS

Amounts falling due within one year

8

175,003

179,719

NET CURRENT ASSETS

1,441,793

1,323,468

TOTAL ASSETS LESS CURRENT LIABILITIES

6,072,053

5,743,814

CREDITORS

Amounts falling due after more than one year

9

(2,551,527

)

(2,593,251

)

PROVISIONS FOR LIABILITIES

13

(184,834

)

(144,934

)

NET ASSETS

3,335,692

3,005,629

CAPITAL AND RESERVES

Called up share capital

14

2

2

Retained earnings

15

3,335,690

3,005,627

SHAREHOLDERS' FUNDS

3,335,692

3,005,629

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 director and authorised for issue on 29 October 2021 and were signed by:

Ms A Lazari - Director

1.	STATUTORY INFORMATION

Lazari Assets Limited is a private company,limited by shares, registered in England and Wales. The company 's registered number is 05377174 and registered office address is Greater London House, Hampsted Road, London, NW1 7QX.

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.

Significant judgements and estimates

Critical accounting estimates and assumptions

The preparation of financial statements in accordance with generally accepted accounting principals requires management to make estimates and assumptions in certain circumstances that effect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the accounts and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates. The estimates and assumptions that have a significant risk of causing a maternal adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.

Investment and operating property valuations

Properties are valued annually by external valuers. Valuations are made as at the reporting date and conform to International Valuation Standards. Valuations are made using various assumptions and estimations which include, but are not limited to market yields, transaction prices of similar properties, tenure and tenancy details. These assumptions are approved by the company directors.

Trade receivables

The company reviews trade receivables and makes judgements on the recoverability of these receivables with reference to the age of outstanding amounts, credit status of the counterparty and the status of any outstanding dispute.

Going concern

A detailed review of cash flow forecasts and working capital requirements for the 12 months from the signing of the financial statements, incorporating the impact of Covid-19, have been undertaken by the Director's to confirm that the company has sufficient resources to meet its normal trading liabilities as and when they fall due for a period of at least one year from the date of signature of the financial statements of the company for the year ended 31 March 2021.

Turnover

Turnover represents net rental and other related income, excluding value added tax.

Tangible fixed assets

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

Computer equipment

-

25% on reducing balance

Investment properties

Investment properties are carried at fair value as determined above. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

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 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.

Deferred taxes at the balance sheet date have been measured using the enacted tax rates of 19% as reflected in these financial statements.

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.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out- right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the balance sheet date.

Finance costs amortisation

Finance costs incurred in connection with the arrangement of bank loans are capitalised as a reduction to the loan and then amortised , on a straight line basis, over the duration of the loans.

Recognition of income relating to rent free periods

Rental income relating to rent free periods given on new leases is allocated evenly over the period from the date of the lease commencement to the the lease expiry date.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Long term directors loan account is interest free and measured at the transaction price.

Derivative financial instruments

The company holds derivative financial instruments to hedge its interest rate risk exposures. All derivatives are recognised initially at fair value. Thereafter, derivatives are measured at fair value with changes recognised in profit or loss as part of interest payable. Fair value is based on price quotations from financial institutions active in the relevant market.

3.	EMPLOYEES AND DIRECTORS

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

4.	AUDITORS' REMUNERATION

31.3.21

31.3.20

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

6,000

5,400

Auditors' remuneration for non audit work

2,790

1,794

5.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 April 2020

and 31 March 2021

2,453

DEPRECIATION

At 1 April 2020

2,107

Charge for year

86

At 31 March 2021

2,193

NET BOOK VALUE

At 31 March 2021

260

At 31 March 2020

346

6.	INVESTMENT PROPERTIES

Total

£

FAIR VALUE

At 1 April 2020

4,420,000

Revaluations

210,000

At 31 March 2021

4,630,000

NET BOOK VALUE

At 31 March 2021

4,630,000

At 31 March 2020

4,420,000

The Investment properties were valued on an open market basis on 31 March 2021 by Lambert Smith Hampton, Chartered Surveyors.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Trade debtors

65,448

53,071

Other debtors

-

8

65,448

53,079

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Bank loans and overdrafts (see note 10)

41,000

41,000

Trade creditors

-

1

Tax

37,544

34,351

VAT

4,745

5,564

Rent received in advance

69,498

68,571

Accrued expenses

22,216

30,232

175,003

179,719

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.21

31.3.20

£

£

Bank loans (see note 10)

1,241,000

1,282,000

Other loans (see note 10)

(9,964

)

(9,240

)

Tenants' deposits

49,786

49,786

Directors' loan accounts

1,270,705

1,270,705

2,551,527

2,593,251

10.

LOANS

An analysis of the maturity of loans is given below:

31.3.21

31.3.20

£

£

Amounts falling due within one year or on demand:

Bank loan under 1 yr

41,000

41,000

Amounts falling due between one and two years:

Bank loan 1-2 yrs

41,000

41,000

Amounts falling due between two and five years:

Bank loan 2-5 yrs

1,200,000

1,241,000

Finance costs

(12,330

)

(9,240

)

Financial Instruments

2,366

-

1,190,036

1,231,760

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.21

31.3.20

£

£

Bank loans

1,282,000

1,323,000

The bank holds charges over 116-120 Seven Sisters Road (market value of £2,360,000 as at 31st of March 2021 and 122 Seven Sisters Road (market value of £1,420,000 as at 31st of March 2021). There are no charges over 150 Seven Sisters Road (unencumbered -market value of £850,000 as at 31st of March 2021).

As at the balance sheet date of 31 March 2021, the company had entered into a 4 year interest rate SWAP agreement fixing at a rate of 1.90% on a notional principal amount of 1,323,000, reducing with capital amortisation. The SWAP became effective from 14 April 2020. As at 31 March 2021 the outstanding amount of interest rate SWAP was 1,282,000.

12.	DIRECTOR'S LOAN

Included in Creditors - amounts falling due after more than one year is a loan of £1,270,705 (2020 - £1,270,705 ) due to the Director. This loan is recognised at transaction price. The director's loan is not due until after more than 1 year and is interest free.

13.	PROVISIONS FOR LIABILITIES

31.3.21

31.3.20

£

£

Other provisions

Deferred tax on CGT provision

184,834

144,934

Capital gains tax on uncrystallised gains on property investments is provided in the financial statements as shown above.

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.3.21

31.3.20

value:

£

£

2

Ordinary

£1

2

2

15.

RESERVES

Retained

earnings

£

At 1 April 2020

3,005,627

Profit for the year

330,063

At 31 March 2021

3,335,690

Included in Retained earnings as at 31 March 2021 is an amount of £1,622,225 (2020 - £1,451,625) of revaluation reserves which are non distributable.

16.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Christakis Skarparis (Senior Statutory Auditor)

for and on behalf of Chris Skarparis & Co Ltd