Arima Leisure Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03094386 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 October 2017

for

ARIMA LEISURE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Director:

Mr L A Kyriacou

Secretary:

Mrs T Kyriacou

Registered office:

907 Green Lanes

Winchmore Hill

London

N21 2QP

Registered number:

03094386 (England and Wales)

Accountants:

Haines Watts

Chartered Accountants

305 Regents Park Road

Finchley

London

N3 1DP

Fixed assets

Tangible assets

4

2,915

4,099

Investments

5

100

-

Investment property

6

11,828,885

6,127,051

11,831,900

6,131,150

Current assets

Debtors

7

72,013

129,507

Prepayments and accrued income

2,367

1,992

Cash at bank

155

15,776

74,535

147,275

Creditors

Amounts falling due within one year

8

5,197,872

3,988,190

Net current liabilities

(5,123,337

)

(3,840,915

)

Total assets less current liabilities

6,708,563

2,290,235

Provisions for liabilities

759,352

198,749

Net assets

5,949,211

2,091,486

Capital and reserves

Called up share capital

10

2

2

Retained earnings

5,949,209

2,091,484

Shareholders' funds

5,949,211

2,091,486

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the director on 26 July 2018 and were signed by:

Mr L A Kyriacou - Director

1.	Statutory information

Arima Leisure 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

First year adoption of Financial Reporting Standard 102 ( FRS 102) Section 1A

These financial statements for the year ended 31 October 2017 are the first that are prepared in accordance

with FRS 102 Section 1A. The previous financial statements were prepared in accordance with UK GAAP, the

date of transition to FRS 102 Section 1A is 1 November 2015.

Preparation of consolidated financial statements

The financial statements contain information about Arima Leisure Limited as an individual company and do not

contain consolidated financial information as the parent of a group. The company has taken the option under

Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out

by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as

possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out

by management regularly. Whilst every attempt is made to ensure that the deferred tax is accurate as possible,

there remains a risk that the provisions do not match the actual tax liability when asset is disposed off.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is

carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are

as accurate as possible, there remains a risk that the provisions do not match the level of debts which

ultimately prove to be uncollectable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Computer equipment

-

25% on cost

Investment property

Investment properties are included in the balance sheet at their open market value and the aggregate surplus or

deficit is recognised in the profit and loss account. No depreciation is provided.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a

party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial

recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the

effective interest rate method. A provision is established when there is objective evidence that the company will

not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank

and bank overdrafts which are integral part of the company’s cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the

substance of the contractual arrangements entered into and the definitions of a financial liability and an equity

instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company

after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

3.	Employees and directors

The average number of employees during the year was 1 (2016 - 1 ) .

4.	Tangible fixed assets

Plant and

Computer

machinery

equipment

Totals

£

£

£

Cost

At 1 November 2016

and 31 October 2017

27,057

2,511

29,568

Depreciation

At 1 November 2016

23,596

1,873

25,469

Charge for year

865

319

1,184

At 31 October 2017

24,461

2,192

26,653

Net book value

At 31 October 2017

2,596

319

2,915

At 31 October 2016

3,461

638

4,099

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as

follows:

Plant and

machinery

£

Cost

At 1 November 2016

and 31 October 2017

27,057

Depreciation

At 1 November 2016

23,596

Charge for year

865

At 31 October 2017

24,461

Net book value

At 31 October 2017

2,596

At 31 October 2016

3,461

5.	Fixed asset investments

Other

investments

£

Cost

Additions

100

At 31 October 2017

100

Net book value

At 31 October 2017

100

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary Company

Registered office: 25 Fairgreen, Barnet, United Kingdom, EN4 0QS

Nature of business: Buying and selling of real estate

%

Class of shares:

holding

Ordinary

100.00

30/9/17

£

Aggregate capital and reserves

100

6.	Investment property

Total

£

Fair value

At 1 November 2016

6,127,051

Additions

1,406,912

Revaluations

4,294,922

At 31 October 2017

11,828,885

Net book value

At 31 October 2017

11,828,885

At 31 October 2016

6,127,051

Fair value at 31 October 2017 is represented by:

£

Valuation in 2002

250,000

Valuation in 2003

25,000

Valuation in 2004

78,611

Valuation in 2005

38,158

Valuation in 2006

177,184

Valuation in 2007

70,000

Valuation in 2011

(87,948

)

Valuation in 2015

333,903

Valuation in 2017

4,294,922

Cost

6,649,055

11,828,885

The properties have been valued on an open market existing use basis by the director and by the Lloyds Bank

PLC.

7.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors

3,713

11,246

Other debtors

68,300

118,261

72,013

129,507

8.

Creditors: amounts falling due within one year

2017

2016

£

£

Bank loans and overdrafts

88,663

9,772

Trade creditors

159,857

228,469

Taxation and social security

72,509

42,659

Other creditors

4,876,843

3,707,290

5,197,872

3,988,190

9.	Secured debts

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

88,663

9,772

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

2

Ordinary

£1

2

2

11.	Director's advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 October 2017 and

31 October 2016:

2017

2016

£

£

Mr L A Kyriacou

Balance outstanding at start of year

74,762

88,691

Amounts advanced

9,237

272,110

Amounts repaid

(40,000

)

(286,039

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

43,999

74,762

12.	Related party disclosures

Included above in Other creditors is an amount of £4,775,225 (2016 : £3,663,625) owed to a related company.

Both the companies are related by virtue of having common directors and shareholders.