Company Registration No. 06506067 (England and Wales)
IIFL WEALTH (UK) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
IIFL WEALTH (UK) LTD
COMPANY INFORMATION
Directors
A N Shah
S Vakil
Company number
06506067
Registered office
68 St Margarets Road
Edgware
Middlesex
HA8 9UU
Auditor
Ashley King Ltd
68 St. Margarets Road
Edgware
Middlesex
HA8 9UU
Business address
45 King William Street
London
United Kingdom
EC4R 9AN
IIFL WEALTH (UK) LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
IIFL WEALTH (UK) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2017
- 1 -
The directors present the strategic report for the year ended 31 March 2017.
Review of the business
The principal activity of the company is to provide investment advisory, and regulated by the Financial Conduct Authority (FCA) in U.K.
Results and key performance indicators
The Company has performed in accordance with its strategic objectives for the year given the challenging operating environment. The company had profits before taxation and the results for the year are shown on the profit and loss account set out on page 6.
The profit and loss account of the Company also shows the key performance indicators, which are considered to be turnover, gross profit and operating profit.
Changes in the shareholder funds are set out on the Statement of Changes in Equity on page 8 of these statements.
The Company's position at the balance sheet date is shown on page 7.
Business environment
The Company’s focus has been on Professional Clients and Eligible Counter Parties. This market is highly comparative and there is some downward pressure on margins.
Strategy
The Company will continue to grow within the market and are currently looking at new opportunities. The Company has adequate capital and liquidity to fund the growth of the Company and is in a position to take advantage of suitable opportunities as they arise.
Principal risks and uncertainties
The process of risk management is addressed through a framework of policies, procedures and internal controls. Compliance with regulations, legal and ethical standards is a priority for the company and is managed throughout the operational activities of the business.
Future developments
The company plans to consolidate it market presence and increase capacity by recruiting suitable additional staff members.
S Vakil
Director
4 May 2017
IIFL WEALTH (UK) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2017
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2017.
Principal activities
The principal activity of the company continued to be that of providing investment services and other monetary intermediation.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A N Shah
S Vakil
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
The auditors, Ashley King Ltd, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements 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 financial statements 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 financial statements, the directors are required to:
-
• select suitable accounting policies and then apply them consistently;
-
• make judgements and accounting estimates that are reasonable and prudent;
-
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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 financial statements 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
IIFL WEALTH (UK) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 3 -
On behalf of the board
..............................
S Vakil
Director
Date: .........................
2017-05-04
IIFL WEALTH (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IIFL WEALTH (UK) LTD
- 4 -
We have audited the financial statements of IIFL Wealth (UK) Ltd for the year ended 31 March 2017 set out on pages 6 to 20. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 auditor's 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 auditor
As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements 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 Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
-
• give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its profit for the year then ended;
-
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
• have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
IIFL WEALTH (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IIFL WEALTH (UK) LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the Strategic Report and the Directors' Report
.
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:
-
• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
• the financial statements are not in agreement with the accounting records and returns; or
-
• certain disclosures of directors' remuneration specified by law are not made; or
-
• we have not received all the information and explanations we require for our audit.
Rajendrakumar Patel (Senior Statutory Auditor)
for and on behalf of Ashley King Ltd
4 May 2017
Chartered Accountants
Statutory Auditor
68 St. Margarets Road
Edgware
Middlesex
HA8 9UU
IIFL WEALTH (UK) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2017
- 6 -
2017
2016
Notes
£
£
Turnover
3
757,083
595,000
Administrative expenses
(737,428)
(571,349)
Operating profit
4
19,655
23,651
Interest receivable and similar income
7
892
1,192
Profit before taxation
20,547
24,843
Tax on profit
8
(5,467)
(7,007)
Profit for the financial year
15,080
17,836
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
IIFL WEALTH (UK) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2017
- 7 -
2017
2016
£
£
Profit for the year
15,080
17,836
Other comprehensive income
-
-
Total comprehensive income for the year
15,080
17,836
IIFL WEALTH (UK) LTD
BALANCE SHEET
AS AT
31 MARCH 2017
31 March 2017
- 8 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,132
763
Current assets
Debtors
11
161,835
122,216
Cash at bank and in hand
69,462
102,075
231,297
224,291
Creditors: amounts falling due within one year
12
(32,876)
(40,581)
Net current assets
198,421
183,710
Total assets less current liabilities
199,553
184,473
Capital and reserves
Called up share capital
13
150,000
150,000
Profit and loss reserves
14
49,553
34,473
Total equity
199,553
184,473
The financial statements were approved by the board of directors and authorised for issue on 4 May 2017 and are signed on its behalf by:
A N Shah
S Vakil
Director
Director
Company Registration No. 06506067
IIFL WEALTH (UK) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2017
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2015
150,000
16,637
166,637
Year ended 31 March 2016:
Profit and total comprehensive income for the year
-
17,836
17,836
Balance at 31 March 2016
150,000
34,473
184,473
Year ended 31 March 2017:
Profit and total comprehensive income for the year
-
15,080
15,080
Balance at 31 March 2017
150,000
49,553
199,553
IIFL WEALTH (UK) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2017
- 10 -
2017
2016
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
18
(40,242)
(4,323)
Income taxes paid
(7,000)
(9,420)
Net cash outflow from operating activities
(47,242)
(13,743)
Investing activities
Purchase of tangible fixed assets
(763)
(496)
Proceeds from other investments and loans
14,500
(29,500)
Interest received
892
1,192
Net cash generated from/(used in) investing activities
14,629
(28,804)
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(32,613)
(42,547)
Cash and cash equivalents at beginning of year
102,075
144,622
Cash and cash equivalents at end of year
69,462
102,075
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
- 11 -
1
Accounting policies
Company information
IIFL Wealth (UK) Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
68 St Margarets Road, Edgware, Middlesex, HA8 9UU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents fees and commissions receivable net of any VAT.
Fee income represents revenue earned under a wide variety of contracts to provide marketing and referral services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
Amounts recoverable under ongoing work in progress, is included in debtors in accordance with UITF 40 - Revenue Recognition and Service Contracts, and are stated at the net sales value after provision for contingencies and anticipated future losses.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
25% reducing balance
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 12 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2017
2016
£
£
Turnover analysed by class of business
Fees receivable
757,083
595,000
2017
2016
£
£
Other significant revenue
Interest income
892
1,192
2017
2016
£
£
Turnover analysed by geographical market
United Kingdom
757,083
595,000
Turnover relates to services rendered in the United Kingdom.
4
Operating profit
2017
2016
Operating profit for the year is stated after charging:
£
£
Exchange losses
144
-
Fees payable to the company's auditor for the audit of the company's financial statements
5,000
5,000
Depreciation of owned tangible fixed assets
394
199
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £144 (2016 - £-).
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2017
2016
Number
Number
Consultants and support staff
4
3
Their aggregate remuneration comprised:
2017
2016
£
£
Wages and salaries
534,110
401,327
Social security costs
66,241
47,541
600,351
448,868
6
Directors' remuneration
2017
2016
£
£
Remuneration for qualifying services
231,457
198,659
Remuneration disclosed above include the following amounts paid to the highest paid director:
2017
2016
£
£
Remuneration for qualifying services
231,457
198,659
7
Interest receivable and similar income
2017
2016
£
£
Interest income
Interest on bank deposits
132
224
Other interest income
760
968
Total income
892
1,192
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
132
224
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 17 -
8
Taxation
2017
2016
£
£
Current tax
UK corporation tax on profits for the current period
5,474
7,007
Adjustments in respect of prior periods
(7)
-
Total current tax
5,467
7,007
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2017
2016
£
£
Profit before taxation
20,547
24,843
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2016: 20.00%)
4,109
4,969
Tax effect of expenses that are not deductible in determining taxable profit
1,358
2,038
Taxation charge for the year
5,467
7,007
9
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 April 2016
1,816
Additions
763
At 31 March 2017
2,579
Depreciation and impairment
At 1 April 2016
1,053
Depreciation charged in the year
394
At 31 March 2017
1,447
Carrying amount
At 31 March 2017
1,132
At 31 March 2016
763
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 18 -
10
Financial instruments
2017
2016
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
156,700
114,499
Carrying amount of financial liabilities
Measured at amortised cost
27,402
33,574
11
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
122,500
54,999
Amounts owed by group undertakings
15,000
30,000
Other debtors
22,579
31,977
Prepayments and accrued income
1,756
5,240
161,835
122,216
12
Creditors: amounts falling due within one year
2017
2016
£
£
Corporation tax
5,474
7,007
Other creditors
22,402
28,574
Accruals and deferred income
5,000
5,000
32,876
40,581
13
Share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
150,000 Ordinary Shares of £1 each
150,000
150,000
150,000
150,000
14
Profit and loss reserves
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
14
Profit and loss reserves
(Continued)
- 19 -
2017
2016
£
£
At the beginning of the year
34,473
16,637
Profit for the year
15,080
17,836
At the end of the year
49,553
34,473
15
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2017
2016
£
£
Aggregate compensation
231,457
198,659
During the year the company rendered marketing support and referral services to group undertakings. The total fees for the year was £585,000 (2016 £ - 420,000).The balance outstanding at the period end from group undertakings is shown on note 11.
16
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
3.25
29,500
760
(15,260)
15,000
29,500
760
(15,260)
15,000
17
Controlling party
The company is under control of IIFL Holdings Limited, registered in Mumbai, Maharashtra, India
IIFL WEALTH (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 20 -
18
Cash generated from operations
2017
2016
£
£
Profit for the year after tax
15,080
17,836
Adjustments for:
Taxation charged
5,467
7,007
Investment income
(892)
(1,192)
Depreciation and impairment of tangible fixed assets
394
199
Movements in working capital:
(Increase) in debtors
(53,217)
(49,453)
(Decrease)/increase in creditors
(7,074)
21,280
Cash absorbed by operations
(40,242)
(4,323)
2017-03-31
2016-04-01
false
CCH Software
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