Crescent Real Estate Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07642442 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

FOR

CRESCENT REAL ESTATE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S Ebrahim

A Ebrahim

M H Ladak

SECRETARY:

M H Ladak

REGISTERED OFFICE:

Magma House

16 Davy Court

Castle Mound Way

Rugby

Warwickshire

CV23 0UZ

REGISTERED NUMBER:

07642442 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Magma House

16 Davy Court

Castle Mound Way

Rugby

CV23 0UZ

FIXED ASSETS

Tangible assets

4

38,664

73,009

Investment property

5

5,943,710

5,182,166

5,982,374

5,255,175

CURRENT ASSETS

Debtors

6

125,088

21,997

Cash at bank

143,882

300,472

268,970

322,469

CREDITORS

Amounts falling due within one year

7

(2,076,789

)

(2,093,691

)

NET CURRENT LIABILITIES

(1,807,819

)

(1,771,222

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,174,555

3,483,953

CREDITORS

Amounts falling due after more than one year

8

(421,848

)

-

NET ASSETS

3,752,707

3,483,953

CAPITAL AND RESERVES

Called up share capital

100

100

Other reserves

2,999,998

2,999,998

Retained earnings

752,609

483,855

3,752,707

3,483,953

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 2 December 2021 and were signed on its behalf by:

M H Ladak - Director

1.	STATUTORY INFORMATION

Crescent Real Estate 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.

The presentation currency of the financial statements is sterling.

Turnover

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a straight line method, as indicated below.

Depreciation is provided on the following basis:

Plant and machinery

- 10% Straight line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

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.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes as financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors 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.

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

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it related to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

(i) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

(ii) Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Going concern

At 30 June 2021 the company had net current liabilities of £1,807,819 (2020: £1,771,222) and net assets of £3,752,707 (2020: £3,483,953). The directors have prepared the financial statements on a going concern basis. The loans due to participating interests will not be recalled until the company has sufficient funds to repay the balances. The directors have confirmed that adequate cash resources will be available to cover the company's requirements for working capital and capital expenditure for at least twelve months from the date of these accounts.

3.	EMPLOYEES AND DIRECTORS

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

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 July 2020

and 30 June 2021

343,445

DEPRECIATION

At 1 July 2020

270,436

Charge for year

34,345

At 30 June 2021

304,781

NET BOOK VALUE

At 30 June 2021

38,664

At 30 June 2020

73,009

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2020

5,182,166

Additions

761,544

At 30 June 2021

5,943,710

NET BOOK VALUE

At 30 June 2021

5,943,710

At 30 June 2020

5,182,166

The revalued assets are stated at their 2021 open market valuation by the directors.

Fair value at 30 June 2021 is represented by:

£

Valuation in 2013

2,999,998

Cost

2,943,712

5,943,710

6.

DEBTORS

2021

2020

£

£

Amounts falling due within one year:

Trade debtors

89,879

-

Prepayments

1,209

21,997

91,088

21,997

Amounts falling due after more than one year:

Other debtors

34,000

-

Aggregate amounts

125,088

21,997

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

7,152

-

Trade creditors

26,679

135

Amounts owed to group undertakings

1,395,000

1,545,000

Tax

32,318

23,159

VAT

39,375

11,576

Directors' current accounts

463,824

442,510

Accruals and deferred income

112,441

71,311

2,076,789

2,093,691

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 1-2 years

7,152

-

Bank loans - 2-5 years

21,456

-

Bank loans due in more than 5 years by instalments

393,240

-

421,848

-

Amounts falling due in more than five years:

Repayable by instalments

Bank loans due in more than 5 years by instalments

393,240

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

429,000

-

10.	RELATED PARTY DISCLOSURES

At the year end the company owed Lark Investments Inc. via Ebrahim Properties Inc £1,395,000 (2020- £1,545,000). The businesses are controlled by S Ebrahim, the ultimate controlling party and a director of the company. No interest is charged on this balance.

At the year end the company owed M H Ladak, a director of the company, £463,824 (2020- £442,510). No interest is charged on this balance.