DLF Properties Limited - Period Ending 2022-06-30

DLF Properties Limited

(Registration number: 10816206)
Balance Sheet as at 30 June 2022

	Note	2022  £	(As restated) 2021  £
Fixed assets
Tangible assets	4	471	706
Investment property	5	940,000	940,000
		940,471	940,706
Current assets
Cash at bank and in hand		300,666	272,655
Creditors: Amounts falling due within one year	6	(987,479)	(988,228)
Net current liabilities		(686,813)	(715,573)
Total assets less current liabilities		253,658	225,133
Deferred tax liabilities	7	(26,689)	(26,734)
Net assets		226,969	198,399
Capital and reserves
Called up share capital		100	100
Profit and loss account		226,869	198,299
Total equity		226,969	198,399

For the financial year ending 30 June 2022 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 Profit and Loss Account has been taken.

Approved and authorised by the Board on 16 March 2023 and signed on its behalf by:
 

L M Ferro Director

DLF Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2022

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:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

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 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 financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Prior period errors

The prior period has been restated so as to reflect deferred tax of £26,600 on fair value adjustments, which was previously omitted. This decreases reserves and increases deferred tax at 1 July 2020.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value received for rental income net of value added tax.

Tax

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

The current corporation 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.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

DLF Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2022

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.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Office equipment	25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit and loss.

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 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

DLF Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2022

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as 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. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2021 - 4).

4

Tangible assets

	Furniture, fittings and equipment  £
Cost
At 1 July 2021 and 30 June 2022	941
Depreciation
At 1 July 2021	235
Charge for the year	235
At 30 June 2022	470
Carrying amount
At 30 June 2022	471
At 30 June 2021	706

5

Investment properties

	2022 £
At 1 July 2021 and 30 June 2022	940,000

The carrying value of the investment properties is based on the market value advised to the directors. The carrying amount at historical cost is £800,000 (2021 - £800,000).

DLF Properties Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2022

6

Creditors

	Note	2022  £	2021  £
Due within one year
Loans and borrowings	8	963,447	963,447
Trade creditors		2,000	-
Social security and other taxes		1,611	1,622
Accrued expenses		1,527	3,447
Corporation tax liability		8,154	8,087
Deferred income		10,740	11,625
		987,479	988,228

7

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Fixed asset timing differences	89
Revaluation of investment property	26,600
	26,689

2021	(As restated) Liability £
Fixed asset timing differences	134
Revaluation of investment property	26,600
	26,734

8

Loans and borrowings

	2022 £	2021 £
Current loans and borrowings
Director's loan account	963,447	963,447

9

Related party transactions

At 30 June 2022, the company owed D F Goddard £321,061 (2021 - £321,061), F G Ferro £321,061 (2021 - £321,061), L A Ferro £321,061 (2021 - £321,061) and L Ferro £264 (2021 - £264) in the form of directors' loan accounts. These loans are unsecured, repayable on demand and no interest is payable.