Cormorant Investments Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 00760992 (England and Wales)

Financial Statements

for the Year Ended 31 May 2017

for

Cormorant Investments Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mrs M Gurnhill

Mr R C Gurnhill

Miss G E Gurnhill

SECRETARY:

Mrs M Gurnhill

REGISTERED OFFICE:

Byways

Main Street

Horsington

WOODHALL SPA

Lincolnshire

LN10 5EX

REGISTERED NUMBER:

00760992 (England and Wales)

ACCOUNTANTS:

Nicholsons

Chartered Accountants

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

BANKERS:

NatWest Bank Plc

Lincoln Smiths Branch

225 High Street

LINCOLN

Lincolnshire

LN2 1AZ

FIXED ASSETS

Investments

3

1,615,500

1,615,500

CURRENT ASSETS

Debtors

4

11,294

10,712

Cash at bank

64,547

39,081

75,841

49,793

CREDITORS

Amounts falling due within one year

5

31,578

39,658

NET CURRENT ASSETS

44,263

10,135

TOTAL ASSETS LESS CURRENT LIABILITIES

1,659,763

1,625,635

PROVISIONS FOR LIABILITIES

161,600

164,900

NET ASSETS

1,498,163

1,460,735

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,498,063

1,460,635

SHAREHOLDERS' FUNDS

1,498,163

1,460,735

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 22 March 2018 and were signed on its behalf by:

Mrs M Gurnhill - Director

1.	STATUTORY INFORMATION

Cormorant Investments 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

This is modified by the revaluation of certain assets.

Turnover

Turnover represents rents receivable on an accrual basis.

Financial instruments

Only basic financial instruments as defined in FRS 102 are held. Financial assets and financial

liabilities are recognised in the accounts only when the entity becomes party to the contractual

provisions of the instrument and their measurement basis is as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt

instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at transaction price.

Financial liabilities - trade creditors, accruals and other creditors are basic financial instruments,

and are measured at amortised cost. Where a financial liability constitutes a financing transaction

it is initially and subsequently measures at the present value of future payments, discounted at a

market rate of interest.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken

place and there is an obligation to deliver services rather than cash or another financial

instrument.

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.

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.

Operating leases and rental income

Rentals payable under operating leases are charged against income on a straight line basis over

the lease term.

Rental income from operating leases is recognised on a straight line basis over the term of the

lease.

Investment properties

Investment properties are held as fixed assets at open market value. Any aggregate surplus or

deficit from changes in market value are transferred to a revaluation reserve account.

Under the Companies Act 2006 all fixed assets should be depreciated over their useful economic

lives. However, in accordance with the Financial Reporting Standard for Smaller Entities (effective

January 2015) investment properties should not be subject to periodic charges for depreciation,

and should be included in the balance sheet at their open market value. The directors consider

these properties are not held for consumption but for their investment potential and in order to

give a true and fair view it is appropriate to depart from the Companies Act.

3.	FIXED ASSET INVESTMENTS

Other

investment

£

COST OR VALUATION

At 1 June 2016

and 31 May 2017

1,615,500

NET BOOK VALUE

At 31 May 2017

1,615,500

At 31 May 2016

1,615,500

Cost or valuation at 31 May 2017 is represented by:

Other

investment

£

Valuation in 2017

1,615,500

If investment properties had not been revalued they would have been included at the following

historical cost:

2017

2016

£

£

Cost

602,107

602,107

Investment properties were valued on a fair basis on 31 May 2017 by Mrs Gurnhill, a director. The

valuation was determined by the current value of similar properties in the area.

The original cost of the investment properties is £602,107 (2016 - £602,107) and had they been

depreciated in accordance with the Companies Act 2006 the depreciation charge would have

been £12,033 (2016 - £12,033) and the net book value as at 31 May 2017 would have been

£451,128 (2015 - £463,161).

During the year investment properties valued at £1,615,500 (2016 - £1,615,500) were let under

operating leases. The rent received under these leases was £149,287 (2016 - £144,810).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

10,442

9,860

Prepayments

852

852

11,294

10,712

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Tax

14,717

6,334

Social security and other taxes

862

908

Directors' current accounts

4,711

21,955

Deferred income

5,288

4,461

Accruals

6,000

6,000

31,578

39,658

6.	RELATED PARTY DISCLOSURES

At the year end, there was a balance due from the company to Mrs M Gurnhill, a director and 60%

shareholder in the company, of £4,711 (2016 - £21,595).This is an unsecured interest free loan.

During the year the company paid rents of £30,000 (2016 - £30,000) to Mrs M Gurnhill. The rents

are paid at arm's length at an open market value.

There were no amounts outstanding or prepaid at 31 May 2017.

7.	FIRST YEAR ADOPTION

This is the first period that the company has presented accounts in accordance with FRS 102 'The

Financial Reporting Framework Applicable in the UK and Republic of Ireland'. For financial years

up to and including the year end 31 May 2016, the Company prepared its financial statements in

accordance with UK GAAP.

The date of transition to FRS 102 is therefore 1 June 2016. The opening equity position as at the

1 June 2016 and its previously published financial statements for the year ended 31 March 2016

have been restated from old UK GAAP.

.