A1 Appliances

A1 APPLIANCES (MANCHESTER) LTD. CORPORATION TAX COMPUTATION FOR THE PERIOD ENDED 31ST MARCH 2005 A)

ADJUSTED PROFIT £ Profit per Account

(680)

Add Depreciation

-

ADJUSTED PROFIT

(680)

PROFITS AND GAINS FROM NON-TRADING LOAN RELATIONSHIPS Deposit account interest

1

Profits

1

Current year Trading Losses

(1)

FROFITS CHARGEABLE TO CORPORATION TAX

NIL

MEMO: There are no Associated Companies CORPORATION TAX CHARGEABLE CORPORATION TAX OUTSTANDING

NIL

MEMO: Summary of trading losses Trading Loss

680

Utilised (s393A)

1 679

Losses brought forward

41,286

Available for carry forward

41,965

CORPORATION TAX PAYABLE YEAR

PROFITS

RATE

TAX

2004-2005

£0

19%

Nil

A1 APPLIANCES (MANCHESTER) LTD.

REPORTS AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2005

DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP

YACOOB MALIK & CO. ACCOUNTANTS & LEGAL CONSULTANTS

A1 APPLIANCES (MANCHESTER) LTD.

COMPANY NO. 4211477

( ENGLAND AND WALES )

OFFICERS AND PROFESSIONAL ADVISERS OF THE COMPANY

DIRECTORS

R CONNOLLY P MARTIN W F MARTIN

SECRETARY

P MARTIN

REGISTERED OFFICE

548 HYDE ROAD GORTON MANCHESTER M18 7AA

ACCOUNTANTS

YACOOB MALIK & CO. ACCOUNTANTS & LEGAL CONSULTANTS DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP

A1 APPLIANCES (MANCHESTER) LTD. REPORT OF THE DIRECTORS The Directors have pleasure in submitting their Report and Accounts for the period ended 31 March 2005 PRINCIPAL ACTIVITIES, REVIEW OF THE BUSINESS AND FUTURE PROSPECTS The company carries on the business of Domestic Appliances and Furniture Retail. The company has not enjoyed a satisfactory period's trading. However, the Directors are of the opinion that the business will continue to operate in satisfactory manner in the future.

RESULTS AND DIVIDENDS ( a ) The Company made a Loss of £680 ( b ) No Dividends have been paid during the year. ( c ) This leaves a Loss of £680 in retention DIRECTORS The following Directors held office throughout the year. Their interest in the shares of the business at the beginning and end of the year was as follows: NAME OF DIRECTORS

CLASS OF SHARES Ordinary

NUMBER HELD 2005

2004

8

8

P MARTIN

26

26

W F MARTIN

15

15

R CONNOLLY

FIXED ASSETS Full details of changes in fixed assets are given in the notes to the accounts. CASH FLOW STATEMENT The Company is exempt from the requirement of Financial Reporting Standard Number 1 to prepare a cash flow statement as it qualifies as a small company.

1

A1 APPLIANCES (MANCHESTER) LTD. REPORT OF THE DIRECTORS ( Continued )

CLOSE COMPANY STATUS This Company is a close Company within the meaning of the Income and Corporation Taxes Act 1988

By Order of The Board

-----------------------------------------------SECRETARY P Martin DATE:-

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

2

A1 APPLIANCES (MANCHESTER) LTD. PROFIT AND LOSS ACCOUNT FOR THE PERIOD ENDED 31 MARCH 2005

Note

£

£

2005

2004

47,737

46,044

Cost of Sales

7,904

7,103

Gross Profit

39,833

38,941

Operating Expenses

39,778

45,627

55

(6,686)

1

1

Turnover

(2)

Operating Profit / (Loss) Interest Receivable Interest Payable

(3)

736

760

Profit and Loss on ordinary activities

(4)

(680)

(7,445)

Taxation

( 5)

-

-

(680)

(7,445)

Balance Brought Forward

(37,265)

(29,820)

Balance Carried Forward

(37,947)

(37,265)

Profit and Loss on ordinary activities after Taxation and Retained Profit and Loss for the year

Turnover, Operating Expenses and Operating Profit / Loss derived exclusively from continuing operations. There have not been any acquisition. Operating Expenses solely comprise administrative Expenses. ---------------------------------------------------------------------------------------------STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE PERIOD ENDED 31 MARCH 2005 There were no recognised gains or losses in year 2005 or 2004 other than the profit / Loss for the year. The Notes on pages 6 to 10 form part of these Accounts

3

A1 APPLIANCES (MANCHESTER) LTD. BALANCE SHEET AS AT 31 MARCH 2005 FIXED ASSETS

Note

2005

2004 £

Tangible Assets

(7)

£

24,361

24,361

CURRENT ASSETS Stock

15,304

15,010

2,000

2,000

Cash at Bank

-

-

Cash in Hand

-

-

17,304

17,010

70,240

73,388

Debtors and Prepayments

(8)

CREDITORS Amount falling due within one year

(9)

NET CURRENT ASSETS

(52,936)

(56,378)

TOTAL ASSETS LESS LIABILITIES

(28,575)

(32,017)

CREDITORS Amount falling due after one year

( 10 )

(1,544)

5,148

(30,119)

(37,165)

100

100

(30,219)

(37,265)

(30,119)

(37,165)

CAPITAL AND RESERVE Called up Share Capital

( 11 )

Profit and Loss Account

The company is entitled to exemption from audit under Section 249A of the Companies Act 1985 for the year ended 31 March 2005 No notice has been deposited under section 249B(2) of the Compsnies Act 1985 in relation to its accounts for the financial year. The directors acknowledge their responsibilities for; (a)

Ensuring that the company keeps accounting records which comply with Section 221 of the Compsnies Act 1985.

4

A1 APPLIANCES (MANCHESTER) LTD. BALANCE SHEET AS AT 31 MARCH 2005 ( Continued) (b)

Preparing Accounts which give a true and fair view of the state of the 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 requirement of Section 226 and which otherwise comply with the requirements of the Companies Act 1985 relating to accounts, so far as applicable to the company.

THE NOTES ON PAGES 6 TO 10 FORM PART OF THESE ACCOUNTS

------------------------------------------------------ DIRECTOR

THESE ACCOUNTS WERE APPROVED BY THE DIRECTORS ON ----------------------------------------------------

5

A1 APPLIANCES (MANCHESTER) LTD. NOTES TO THE ACCOUNTS

1. PRINCIPAL ACCOUNTING POLICIES The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom. The following accounting policies have been consistently applied in dealing with items which are considered material in relation to the company's accounts. a) BASIS OF ACCOUNTING All items in the accounts are stated under the historical cost accounting rules. b) DEPRECIATION Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows; 2005

2004

Fixtures & Fittings

0%

15%

Motor Vehicle

0%

25%

Computers

0%

25%

c) DEFERRED TAXATION Deferred Taxation is provided at the current rate of corporation tax on the liability method, in respect of tax deferred by taxation allowances and timing difference except to the extent that there is a reasonable probability that liability will not arise within the foreseeable future. 2. TURNOVER Turnover represents the amount invoiced in respect of goods sold and services provided during the year excluding VAT. The turnover and pre-tax Profit/Loss are attributable to the principal activity of the company.

6

A1 APPLIANCES (MANCHESTER) LTD. NOTES TO THE ACCOUNTS

3. INTEREST PAYABLE: Hire Purchase Interest

-

-

4. PROFIT/LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION This is stated after charging:

2005 £

Depreciation

2004 £

-

-

-

-

13,560

13691

2

2

5. TAXATION Corporation tax on profit for period 6. STAFF COSTS AND SELF EMPLOYED Details of staff costs including the Directors were as follows; Wages and Salaries The average number of employees during the year was as follows:

7

A1 APPLIANCES (MANCHESTER) LTD. NOTES TO THE ACCOUNTS

7. FIXED ASSETS Land &

Plant &

Buildings COST

£

At 1 APRIL 2004

Machinery

Total

£

£

7,525

22,574

30,099

Disposal

-

-

-

Additions

-

-

7,525

22,574

AT 31 MARCH 2005

30,099

DEPRECIATION AT 1 APRIL 2004

- 5,738

5,738

Charge for the year

-

-

-

AT 31 MARCH 2005

-

5,738

5,738

AT 31 MARCH 2005

7,525

16,836

24,361

AT 31 MARCH 2004

7,525

16,836

24,361

NET BOOK VALUE

8

A1 APPLIANCES (MANCHESTER) LTD. NOTES TO THE ACCOUNTS 2005 8. DEBTORS & PREPAYMENTS Debtors

£

2004 £

2000

2000

-

-

589

526

Hire Purchase

1,264

3882

Other creditors

44,170

44,170

Directors Current Account

21,215

21,400

662

866

-

544

2,340

2000

70,240

73,388

2,808

5148

Prepayments 9. CREDITORS: Amount falling due within one year Bank loans and overdraft

V,A.T Social Security & Other Taxes Accrued expenses

10. CREDITORS: Amount falling due after one year Hire Purchase

9

A1 APPLIANCES (MANCHESTER) LTD. NOTES TO THE ACCOUNTS

ISSUED AND 11. SHARE CAPITAL

AUTHORISED 2005

FULLY PAID

FULLY PAID

2004

2005

2004

£

£

£

100

1000

100

£ Ordinary Shares of £1 each

1000

ISSUED AND AUTHORISED

12. RECONCILIATION OF MOVEMENT IN SHAREHOLDER'S FUNDS

2005 £ Profit/Loss for the financial year

2004 £

(680)

(7445)

Opening Shareholder's Funds

(37265)

(29820)

Closing Shareholder's Funds

(37945)

(37265)

10

A1 APPLIANCES (MANCHESTER) LTD. TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2005 2005 £

£

SALES / TURNOVER Cost of Sales Other direct costs

2004 £

£

47,737 7,904 -

Gross Profit

46,044 7,103

7,904

-

39,833

7103 38941

LESS EXPENSES: Premises Costs

11,225

15,685

Directors remuneration

5,258

5,209

Wages

8,302

8,482

Telephone

1,314

2,470

-

367

904

376

6,377

5,948

-

-

71

99

284

1

Postage & Stationery Advertising Motor expenses Repairs & renewals Cleaning expenses Sundry expenses Accountancy

1,795

35,530

2,490

4,303

41,127 (2,186)

Finance costs Bank interest

-

24

Hire purchase

736

736

Bank Charges

4,248

TRADING PROFIT / LOSS FOR THE YEAR

4,984 (680)

THIS PAGE DOES NOT FORM PART OF THE STATUTORY ACCOUNTS

1,729

2,489 (4,674)

11

REPORT OF THE ACCOUNTANTS TO THE SHAREHOLDERS OF LAND A1 APPLIANCES OF FURNITURE (MANCHESTER) LIMITED LTD. FOR THE YEAR ENDED 31 MARCH 2005

In accordance with instructions given to us, and without auditing, we have prepared the accounts for the year ended 31 March 2005 set out on pages 3 to 10 from accounting records and from information and explanations supplied to us by the management of the Company.

……………………………………………….. YACOOB MALIK & CO. ACCOUNTANTS AND LEGAL CONSULTANTS DEBDALE HOUSE 2 BRIGHTON RANGE MANCHESTER M18 7LP ________________________________________

THIS PAGE DOES NOT FORM PART OF THE STATUTORY ACCOUNTS