1. Accounting policies

Basis of measurement and preparation of accounts

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008)

Turnover policy

The turnover shown in the profit and loss account represents amounts receivable for goods and services provided during the year in the normal course of business, net of trade discounts, VAT and other sales and related taxes.

Tangible fixed assets depreciation policy

All fixed assets are initially recorded at cost.

Valuation information and policy

Investment properties are shown at their open market value. The surplus or deficit arising from annual revaluation is transferred to the investment revaluation reserve unless a deficit, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognized in the profit and loss account for the year. This is accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) which, unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. The departure from the provisions of the Act is required in order to give a true and fair view.

Other accounting policies

Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

2 . Turnover

The turnover includes £59,104 of funding from directors and family to use in the continued maintenance and renovation of the property. Eventually empty and semi derelict areas will be reclaimed and usable thus enabling the property to be fully utilized and bring in a return for the investment.

3. Tangible assets

Ongoing general maintenance and renovation of parts of the property has been carried out, which has increased the value. Land & buildings were revalued by Mr M.J. Bowen, the director of the company, who has no relevant qualification has valued the investment property as at the balance sheet date and considered that the value included within the financial statements is indicative of the opening market value as at that date.

4. Creditors: amounts falling due after more than one year

Additionally Mr M.J. Bowen has extended his loan to the company, £160,439 carried over from 2012 less £1700 paid back. An additional fund into the company in the form of a loan from Mrs B.L. Bowen for £57,000

5. Provisions for liabilities

6. Called up share capital

Allotted, called up and paid

7. Profit and loss account

8. Related party disclosures

Loans have been provided to Melin-y-Derw Ltd to enable the company to meet it's financial commitments, which are also under personal guarantees by the Directors. In turn the company has provided expertise, and helped with the buildings ongoing renovation work.

9. Capital commitments

Since the accounting date and the filing date the Directors have continued to make a capital commitment to the company.