London Electrical (UK) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02984078 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 October 2017

for

LONDON ELECTRICAL (UK) LIMITED

Page

Company Information

1

Chartered Accountants' Report

2

Statement of Financial Position

3

Notes to the Financial Statements

5

DIRECTOR:

P.S Bhagat

REGISTERED OFFICE:

75 Park Lane

Croydon

Surrey

CR9 1XS

REGISTERED NUMBER:

02984078 (England and Wales)

ACCOUNTANTS:

Kings Mill Partnership

75 Park Lane

Croydon

Surrey

CR9 1XS

The following reproduces the text of the report prepared for the director in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Statement of Financial Position. Readers are cautioned that the Income Statement and certain other primary

statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of London Electrical (UK) Limited for the year ended 31 October 2017 which comprise the Income

Statement, Statement of Financial Position and the related notes from the company's accounting records and from

information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of London Electrical (UK) Limited in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of London Electrical (UK) Limited and state those matters that we have agreed to state to the director of London Electrical (UK) Limited in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than London Electrical (UK) Limited and its director for our work or for this report.

It is your duty to ensure that London Electrical (UK) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of London Electrical (UK) Limited. You consider that London Electrical (UK) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of London Electrical (UK) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Kings Mill Partnership

75 Park Lane

Croydon

Surrey

CR9 1XS

30 July 2018

FIXED ASSETS

Tangible assets

4

55,744

63,040

Investments

5

30,000

30,000

Investment property

6

802,132

729,132

887,876

822,172

CURRENT ASSETS

Stocks

7

67,500

72,500

Debtors

8

88,270

97,560

Cash at bank

1,288

3,054

157,058

173,114

CREDITORS

Amounts falling due within one year

9

398,729

434,924

NET CURRENT LIABILITIES

(241,671

)

(261,810

)

TOTAL ASSETS LESS CURRENT LIABILITIES

646,205

560,362

CREDITORS

Amounts falling due after more than one year

10

(562,942

)

(509,071

)

PROVISIONS FOR LIABILITIES

(19,076

)

(12,080

)

NET ASSETS

64,187

39,211

CAPITAL AND RESERVES

Called up share capital

226,000

226,000

Non - Distribution reserve

11

81,323

51,319

Retained earnings

11

(243,136

)

(238,108

)

SHAREHOLDERS' FUNDS

64,187

39,211

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 Income Statement has not been delivered.

The financial statements were approved by the director on 30 July 2018 and were signed by:

P.S Bhagat - Director

1.	STATUTORY INFORMATION

London Electrical (UK) 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 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

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

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset over its

expected useful life or, if held under a finance lease, over the lease term, whichever is the shorter as follows:

Short Leaseholds - Straight Line over the life of the lease

Improvements to Leaseholds - Straight Line over the life of the lease.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation being on 31st October 2017. The valuation was carried

out by the ultimate controlling party Mr Salman. Any surplus or deficit arising from changes in the market value

is transferred to the profit and loss account.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

and

Motor

leaseholds

fittings

vehicles

Totals

£

£

£

£

COST

At 1 November 2016

202,496

7,959

40,686

251,141

Additions

8,000

-

-

8,000

Disposals

(63,000

)

(7,959

)

(40,686

)

(111,645

)

At 31 October 2017

147,496

-

-

147,496

DEPRECIATION

At 1 November 2016

139,456

7,959

40,686

188,101

Charge for year

15,296

-

-

15,296

Eliminated on disposal

(63,000

)

(7,959

)

(40,686

)

(111,645

)

At 31 October 2017

91,752

-

-

91,752

NET BOOK VALUE

At 31 October 2017

55,744

-

-

55,744

At 31 October 2016

63,040

-

-

63,040

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 November 2016

and 31 October 2017

30,000

NET BOOK VALUE

At 31 October 2017

30,000

At 31 October 2016

30,000

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 November 2016

729,132

Additions

33,000

Revaluations

40,000

At 31 October 2017

802,132

NET BOOK VALUE

At 31 October 2017

802,132

At 31 October 2016

729,132

The investment property is to be revalued every 5 years and as no more than 25% is occupied by the company

then no depreciation charge is applied.

7.

STOCKS

2017

2016

£

£

Stocks

67,500

72,500

.

8.

DEBTORS

2017

2016

£

£

Amounts falling due within one year:

Trade debtors

1,966

1,416

Amounts owed by group undertakings

12,196

22,036

14,162

23,452

2017

2016

£

£

Amounts falling due after more than one year:

Other debtors

74,108

74,108

Aggregate amounts

88,270

97,560

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

29,137

2,984

Trade creditors

4,809

7,152

Social security and other taxes

1,756

1,557

Other creditors

350,227

411,831

Directors' current accounts

10,000

10,000

Accruals and deferred income

2,800

1,400

398,729

434,924

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Other creditors

562,942

509,071

The company continues to trade with the continued support of its major shareholder Mr Rahman Salman. The

other major creditor is Mrs Bailey for the purchasing of the freehold and flats of 164 Westbourne Grove London.

As amounts owed to Mrs Bailey are repayable on demand the loan balance is shown is other creditors due in less

than one year.

Also in other creditors due after one year is a balance of £76,000 owing to Mr Salman the ultimate controlling

party which was originally in other creditors due in less than one year. As the balance of £76,000 was from

previous years Mr Salman took the view that this was a long term creditor and should be shown as such.

11.

RESERVES

Non -

Retained

Distribution

earnings

reserve

Totals

£

£

£

At 1 November 2016

(238,108

)

51,319

(186,789

)

Profit for the year

27,976

27,976

Investment Property

(33,004

)

30,004

(3,000

)

At 31 October 2017

(243,136

)

81,323

(161,813

)

12.	FIRST YEAR ADOPTION

The company has adopted FRS 102 for the year ended 31st October 2017 and has restated the comparative prior

year amounts.

Explanations

1. Company law suggests the need to ring fence an entity's non-distributable reserves in order avoid

misinterpretation of any available reserves to the shareholders. The concept of having a revaluation reserve

relating to investment properties is no longer compliant under FRS 102 (section 16). Thus, the decision was

taken by the directors to create a separate reserve called 'Non-distributable reserves'.

Note. This has no overall effect on shareholders' funds.

2. In conjunction with note 1. all revaluation gains generated through investment properties are subject to a

deferred tax provision. No provisions were made prior to FRS 102 adoption, therefore adjustments have now

been applied to last years statement of financial position and statement of comprehensive income.

Transition to FRS 102 - reconciliations

Restated statement of financial position

Explanation

31-Oct-16

31-Oct-16

£

£

Original shareholders' funds

(238,108

)

(238,108

)

Revaluation reserve

3,000

63,399

Non-Distribution reserve

1

60,399

Deferred tax adjustment

2

(12,080

)

----------------

----------------

Total reserves

(186,789

)

(174,709

)

==========

==========

Restated income statement

Explanation

31-Oct-16

£

Original profit on ordinary activities before tax

(6,384

)

Reclassification of reserves

1

15,000

Deferred tax adjustment

2

(12,080

)

----------------

Restated loss on ordinary activities after tax

(3,464

)

==========