Azur Developments Ltd - Period Ending 2017-06-30

Registration number: 09101150

Azur Developments Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2017

Lucraft Hodgson & Dawes LLP
2/4 Ash Lane
Rustington
West Sussex
BN16 3BZ

Azur Developments Ltd

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 11

Azur Developments Ltd

Company Information

Directors	Mr I Sexton Mrs L Sexton

Registered office

2/4 Ash Lane Rustington Littlehampton West Sussex BN16 3BZ

Accountants

Lucraft Hodgson & Dawes LLP 2/4 Ash Lane Rustington West Sussex BN16 3BZ

Page 1

Azur Developments Ltd

(Registration number: 09101150)
Balance Sheet as at 30 June 2017

	Note	2017  £	2016  £
Fixed assets
Tangible assets	3	60,379	-
Current assets
Stocks	4	2,210,781	1,071,995
Debtors	5	25,356	46,336
Cash at bank and in hand		84,366	4,687
		2,320,503	1,123,018
Creditors: Amounts falling due within one year	6	(2,491,808)	(1,149,917)
Net current liabilities		(171,305)	(26,899)
Net liabilities		(110,926)	(26,899)
Capital and reserves
Called up share capital		100	100
Profit and loss account		(111,026)	(26,999)
Total equity		(110,926)	(26,899)

For the financial year ending 30 June 2017 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 26 March 2018 and signed on its behalf by:
 

.........................................

Mr I Sexton

Director

The notes on pages 3 to 11 form an integral part of these financial statements.

Page 2

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

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:
2/4 Ash Lane
Rustington
Littlehampton
West Sussex
BN16 3BZ
United Kingdom

These financial statements were authorised for issue by the Board on 26 March 2018.

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 that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling, which is also the company's functional currency. The financial statements are rounded to the nearest £1.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

Page 3

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

2	Accounting policies (continued)

The current income 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 tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

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
Plant and machinery	25% reducing balance

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 debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Page 4

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

2	Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Page 5

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

2	Accounting policies (continued)

Financial instruments

Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
 Recognition and measurement
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised costs using the effective interest method.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, such as the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case off an outright short term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow, discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If evidence of impairment is found, an impairment loss is recognised in the income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying value and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 

3	Tangible assets

	Other property, plant and equipment  £	Total £
Cost or valuation

Page 6

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

3	Tangible assets (continued)

	Other property, plant and equipment  £	Total £
Additions	60,886	60,886
At 30 June 2017	60,886	60,886
Depreciation
Charge for the year	507	507
At 30 June 2017	507	507
Carrying amount
At 30 June 2017	60,379	60,379

4

Stocks

	2017  £	2016  £
Work in progress	2,210,781	1,071,995
	2,210,781	1,071,995

5

Debtors

	2017 £	2016 £
Prepayments	-	19,864
Other debtors	25,356	26,472
	25,356	46,336

Page 7

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

6

Creditors

Creditors: amounts falling due within one year

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	8	40,000	-
Trade creditors		175,608	179,197
Amounts due to related parties	9	2,275,000	970,000
Accrued expenses		1,200	720
		2,491,808	1,149,917

7	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary of £1 each	100	100	100	100

8	Loans and borrowings

	2017  £
Current loans and borrowings
Other borrowings	40,000
	40,000

9	Related party transactions

Transactions with directors

Other transactions with directors

During the year the company made sales to a director totalling £68,134 (2016 - £19,864). In addition the company was provided with a loan from a director totalling £40,000. This loan is non-interest bearing, unsecured and repayable on demand.

Page 8

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

9	Related party transactions (continued)

Summary of transactions with other related parties

The company has a related party, Azur Auto Limited, a company under common control.
 During the year the company continued to be provided with a loan from Azur Auto Limited.
 The loans provided are interest bearing at a rate of 4% per annum and are unsecured and repayable on demand.
 

Loans to related parties

2017	Other related parties £
At start of period	970,000
Advanced	1,305,000
Repaid	(68,349)
Interest transactions	68,349
At end of period	2,275,000

2016	Other related parties £
At start of period	95,000
Advanced	875,000
Repaid	(15,686)
Interest transactions	15,686
At end of period	970,000

10	Transition to FRS 102

This is the first year that the company has presented its results under FRS102. The last financial statements prepared under previous UK GAAP were for the year ended 30 June 2016. The date of transition to FRS102 was 1 July 2015.

Set out below are the changes in accounting policies which reconcile profit for the year ended 30 June 2016 and the total equity as at 1 July 2015 and 30 June 2016 between UK GAAP as previously reported and FRS102.

Page 9

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

10	Transition to FRS 102 (continued)

Balance Sheet at 1 July 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Current assets
Stocks		76,621	-	-	76,621
Debtors		5,070	-	-	5,070
Cash at bank and in hand		32,022	-	-	32,022
		113,713	-	-	113,713
Creditors: Amounts falling due within one year		(117,485)	-	-	(117,485)
Net liabilities		(3,772)	-	-	(3,772)
Capital and reserves
Called up share capital		100	-	-	100
Profit and loss account		(3,872)	-	-	(3,872)
Total equity		(3,772)	-	-	(3,772)

Page 10

Azur Developments Ltd

Notes to the Financial Statements for the Year Ended 30 June 2017

10	Transition to FRS 102 (continued)

Balance Sheet at 30 June 2016
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Current assets
Stocks		1,071,995	-	-	1,071,995
Debtors		46,336	-	-	46,336
Cash at bank and in hand		4,687	-	-	4,687
		1,123,018	-	-	1,123,018
Creditors: Amounts falling due within one year		(1,149,917)	-	-	(1,149,917)
Net liabilities		(26,899)	-	-	(26,899)
Capital and reserves
Called up share capital		100	-	-	100
Profit and loss account		(26,999)	-	-	(26,999)
Total equity		(26,899)	-	-	(26,899)

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