Zinc Apartments Limited |
Statement of Directors' Responsibilities |
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The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations. |
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Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to: |
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select suitable accounting policies and then apply them consistently; |
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make judgements and estimates that are reasonable and prudent; |
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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Zinc Apartments Limited |
Independent auditors' report |
to the members of Zinc Apartments Limited |
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We have audited the accounts of Zinc Apartments Limited for the year ended 30 September 2013 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard For Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
Respective responsibilities of directors and auditors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors. |
In accordance with the exemption provided by APB Ethical Standard - Provisions Available for Smaller Entities (Revised), we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts. |
Scope of the audit of the accounts |
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion the information given in the Directors' Report for the financial year for which the accounts are prepared is consistent with the accounts. |
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the accounts are not in agreement with the accounting records and returns; or |
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certain disclosures of directors’ remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit; or |
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the directors were not entitled to prepare the accounts and the directors' report in accordance with the small companies regime. |
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A R Mitchell |
(Senior Statutory Auditor) |
109 Gloucester Place |
for and on behalf of |
Adams, Mitchell |
London |
Accountants and Statutory Auditors |
30 June 2014 |
W1U 6JW |
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Zinc Apartments Limited |
Notes to the Accounts |
for the year ended 30 September 2013 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). |
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Turnover |
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Turnover represents the value, net of value added tax and discounts, of properties sold and rented during the year. |
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Stocks |
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Stock represents property acquired for development together with work in progress on those properties. The resultant stock and work in progress is valued at the lower of cost or net realisable value. Cost comprises the acquisition cost of the land and buildings, together with related legal and professional costs, and development expenditure. Interest expense is written off as incurred. In considering net realisable value, it is assumed that developments will be completed and sold in the ordinary course of business, and not placed on the market for immediate sale in their current state of development. |
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2 |
Operating profit |
2013 |
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2012 |
£ |
£ |
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This is stated after charging: |
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Auditors' remuneration |
1,985 |
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1,750 |
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The exceptional item within the profit and loss account represents the release of an obligation to pay a creditor, Acorn Homes (GB) Limited (in liquidation) that had input money into the company for the development of a site, held as stock. The company has decided to sell the stock it in its current state, which has resulted in a write down in value. Acorn Homes (GB) Limited (in liquidation) has accepted, therefore, that there will not be sufficient funds resulting from the sale of the stock for the company to repay the capital input and consequently the amount due has been written off in the profit and loss account. |
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3 |
Interest payable |
2013 |
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2012 |
£ |
£ |
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Interest payable |
612,458 |
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505,110 |
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4 |
Debtors |
2013 |
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2012 |
£ |
£ |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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855 |
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5,443 |
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Other debtors |
583 |
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- |
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1,438 |
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5,443 |
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5 |
Creditors: amounts falling due within one year |
2013 |
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2012 |
£ |
£ |
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Bank loans and overdrafts |
6,377,463 |
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7,116,494 |
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Trade creditors |
- |
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100 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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92,289 |
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62,664 |
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Other creditors |
408,246 |
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2,397,025 |
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6,877,998 |
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9,576,283 |
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6 |
Share capital |
Nominal |
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2013 |
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2013 |
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2012 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
£1 each |
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100 |
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100 |
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100 |
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7 |
Profit and loss account |
2013 |
£ |
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At 1 October 2012 |
(5,389,803) |
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Profit for the year |
1,427,942 |
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At 30 September 2013 |
(3,961,861) |
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8 |
Post balance sheet events |
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On 19 May 2014, Macquarie Bank, who financed the company's stock and work in progress entered into a binding agreement, the effect of which is to assign the beneficial interest in its loan to the company to Mr Skok, a director of other group companies, and that no demands will be made on the company before the assignment is complete, which had not completed at the date of the approval of these accounts. The assignee has irrevocably agreed to extend the terms of the loan and this will result in an immediate improvement in the liquidity, net current assets and long term viability of the company. |
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10 |
Ultimate controlling party |
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The director considers RST Residential Investments Limited to be the ultimate controlling party. |
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11 |
Going concern |
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On 26 October 2011 Macquarie Bank Limited appointed a receiver to the company's property. The company continues to trade and market the company's remaining stock of apartments. The director has prepared the accounts on the going concern basis because in her opinion whilst the company continues to work with Macquarie Bank Limited to market the remaining stock of property, there would be no material difference in the values of assets and liabilities if the going concern basis were not applicable. This basis of accounts preparation is further supported by the post balance sheet events explained in Note 8 above. |