Company registration number 03606255 (England and Wales)
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 4
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
€
€
€
€
Fixed assets
Investment properties
3
1,824,317
1,800,000
Investments
4
482,641
482,641
2,306,958
2,282,641
Current assets
Debtors
6
1,842
1,825
Cash at bank and in hand
538
199
2,380
2,024
Creditors: amounts falling due within one year
7
(3,494,414)
(3,454,682)
Net current liabilities
(3,492,034)
(3,452,658)
Net liabilities
(1,185,076)
(1,170,017)
Capital and reserves
Called up share capital
8
1,600
1,600
Profit and loss reserves
(1,186,676)
(1,171,617)
Total equity
(1,185,076)
(1,170,017)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 9 May 2023
Lorenzo Braghieri
Director
Company Registration No. 03606255
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
M.C.F. Modern & Classic Furniture Limited is a private company limited by shares incorporated in England and Wales. The registered office is Second Floor De Burgh House, Market Road, Wickford, Essex, England, SS12 0FD.
1.1
Accounting convention
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 euros, 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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts derived from the provision of administrative services. Turnover is recognised upon completion of the contractual obligations of the company. Turnover is shown net of VAT and other sales related taxes.
1.3
Investment properties
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. The surplus or deficit on revaluation is recognised in profit or loss.
1.4
Financial instruments
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.
Basic financial assets
Basic financial assets include cash and bank balances and debtors.
Debtors
Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the asset is impaired.
Cash at bank and in hand
Cash at bank and in hand include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.
Classification of financial liabilities
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.
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
Basic financial liabilities
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.
1.5
Foreign exchange
Transactions in currencies other than euros 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 are included in the profit and loss account for the period.
1.6
The director has prepared the financial statements on the going concern basis although the balance sheet shows negative shareholders funds. This is considered appropriate as the company's shareholders and creditors will continue to provide financial support to the company for the foreseeable future and the company is expecting to make profits in future years that will reverse this position. Should the company be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
3
Investment property
2022
€
Fair value
At 1 January 2022
1,800,000
Additions
24,317
At 31 December 2022
1,824,317
The fair value of the investment property has been arrived at on the basis of a valuation carried out by Lorenzo Braghieri (director). As such the valuation was not carried out by an independent valuer who holds a recognised and relevant professional qualification. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties as at 31 December 2022.
M.C.F. MODERN & CLASSIC FURNITURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
4
Fixed asset investments
2022
2021
€
€
Investments
482,641
482,641
5
Associates
Details of the company's associates at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mirandola SRL
Italy
Ordinary
16.66
6
Debtors
2022
2021
Amounts falling due within one year:
€
€
Other debtors
1,842
1,825
7
Creditors: amounts falling due within one year
2022
2021
€
€
Trade creditors
3,673
11,393
Other creditors
3,490,741
3,443,289
3,494,414
3,454,682
8
Called up share capital
2022
2021
€
€
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,600
1,600
9
Related party transactions
Included within other creditors is an interest free loan of €3,435,573 (2021: €3,390,280) from the shareholders. This is repayable on demand. The shareholder advanced a further €45,293 (2021: €36,612) to the company during the year.