REGISTERED NUMBER:
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Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 March 2021 |
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Euro Exim Bank Limited |
REGISTERED NUMBER:
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Report of the Directors and |
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Audited Financial Statements for the Year Ended 31 March 2021 |
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for |
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Euro Exim Bank Limited |
Euro Exim Bank Limited (Registered number: 07520196) |
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Contents of the Financial Statements |
FOR THE YEAR ENDED 31 MARCH 2021 |
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Company Information | 1 |
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Report of the Directors | 2 | to | 4 |
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Statement of Financial Position | 5 |
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Notes to the Financial Statements | 6 | to | 12 |
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Euro Exim Bank Limited |
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Company Information |
FOR THE YEAR ENDED 31 MARCH 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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INDEPENDENT AUDITORS : |
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Chartered Accountants & Statutory Auditors |
1 Beauchamp Court |
10 Victors Way |
Barnet |
Hertfordshire |
EN5 5TZ |
Euro Exim Bank Limited (Registered number: 07520196) |
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Report of the Directors |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the provision of support consultancy and management during the issuance of letters of credits. |
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Change in the nature of trade |
The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of COVID-19, such as safety and health measures for our people (such as social distancing and working from home) and securing the supply of our services. |
As a result the directors have implemented a strategic decision to relinquish Relay Message services to Euro Exim Bank (St Lucia) Limited in favour of providing Euro Exim Bank (St Lucia) Limited chargeable management services based on a percentage of income. The alteration in the company's principal activity enabled the company to reduce its major direct costs and other administrative expenses to safeguard its survival through uncertain times. |
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Euro Exim Bank (St Lucia) Limited is registered in St Lucia, which is controlled by Century Holding Limited, in which a key management personnel has a controlling interest. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 April 2020 to the date of this report. |
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The beneficial interests of the directors holding office at 31 March 2021 in the shares of the company, according to the register of directors' interests, were as follows: |
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31.3.21 | 1.4.20 |
Ordinary shares of £1 each |
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350,100 | 350,100 |
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These directors did not hold any non-beneficial interests in the shares of the company. |
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FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
The directors have established a risk and financial management framework whose primary objective is to protect the Company from events that hinder the achievement of performance objective. The objective aim to limit the undue counterparty exposure, ensure sufficient working capital and monitor risk at a business unit level. |
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The company's principal financial instruments during the year comprised of trade debtors and trade creditors. The main purpose of these financial instruments are to provide funding for company's operations. |
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Liquidity risk |
The Company manages its cash requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operation needs of the business. |
Euro Exim Bank Limited (Registered number: 07520196) |
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Report of the Directors |
FOR THE YEAR ENDED 31 MARCH 2021 |
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Interest rate risk |
Currently the company's exposure to interest rate risk is minimal. |
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Credit risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors will be monitored on an ongoing basis and provision may be made for doubtful debts where necessary. |
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GOING CONCERN |
The directors have considered the company's objective, risk management policies, liquidity risk, credit risk, capital management policies and procedures, the nature of its market positioning and its expenditure and cash flow projections. As a result of this review the directors have concluded that the company has adequate and reliable resources to continue to adopt a going concern basis in preparing these financial statements. However the extraordinary circumstances created by the global pandemic Covid-19 coronavirus, the directors have taken steps deemed necessary as disclosed in the Note 2, the accounting policies and notes to the accounts. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The director is responsible for preparing the director's report and the financial statements in |
accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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. |
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In preparing these financial statements, the director is required to: |
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-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. |
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The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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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The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and BBK Partnership will therefore continue in office. |
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Euro Exim Bank Limited (Registered number: 07520196) |
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Report of the Directors |
FOR THE YEAR ENDED 31 MARCH 2021 |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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ON BEHALF OF THE BOARD: |
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Euro Exim Bank Limited (Registered number: 07520196) |
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Statement of Financial Position |
31 MARCH 2021 |
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31.3.21 | 31.3.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 9 |
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CAPITAL AND RESERVES |
Called up share capital | 10 |
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Retained earnings | 11 |
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SHAREHOLDERS' FUNDS |
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881,659 | 875,710 |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | STATUTORY INFORMATION |
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Euro Exim Bank Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The policies adopted for the recognition of turnover are as follows: |
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When the outcome of a transaction can be estimated reliably, turnover is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to competed letters of credit issued by Euro Exim Bank Limited St Lucia. |
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Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
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Tangible fixed assets |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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Government grants |
The company receives government grants in respect of furlough of employees. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
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Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
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The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Cash and cash equivalents |
Cash and cash equivalents comprises cash on hand and all deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to and insignificant risk of change in value. |
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Foreign currency transactions and balances |
Transactions in foreign currency are initially recorded at the functional currency rate prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective financial currency of the entity at the rate prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. |
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Trade debtors |
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
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Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities of the company does not have an unconditional right at the end of the reporting period to refer settlements of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlements for at least twelve months after the reporting date they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
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Borrowings |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2. | ACCOUNTING POLICIES - continued |
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. |
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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. |
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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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Director and shareholder loans |
Loans provided by or to the directors or shareholders considered to be a neutral person will be measured at transaction price. |
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Provisions |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
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Going concern |
The accounts have been prepared in a going concern basis. |
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The current pandemic caused by Covid-19 has triggered global uncertainty and the impact particularly in the finance and credit industry is expected to be extraordinary. The directors are monitoring the progress and effect of the spread of the virus, though they are unable to immediately quantify its impact on future commerciality. |
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Strategies and policies to manage the evolving developments have been implemented by the director's, specifically: |
- Monitoring changes in confirmed orders and cancellations |
- Monitoring the management responses of associated institutions |
- Reviewing the impact on forecast that may impact impairment evaluations |
- Possibilities in insurance recoveries |
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The directors are assured that the company has sufficient resources to bear the global impact within the finance and credit industry. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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4. | INTANGIBLE FIXED ASSETS |
Computer |
software |
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COST |
At 1 April 2020 |
and 31 March 2021 |
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AMORTISATION |
At 1 April 2020 |
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Amortisation for year |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
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Additions |
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At 31 March 2021 |
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DEPRECIATION |
At 1 April 2020 |
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Charge for year |
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At 31 March 2021 |
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NET BOOK VALUE |
At 31 March 2021 |
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At 31 March 2020 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.21 | 31.3.20 |
£ | £ |
Trade debtors |
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Other debtors |
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Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.21 | 31.3.20 |
£ | £ |
Bank loans and overdrafts (see note 8) |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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8. | LOANS |
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An analysis of the maturity of loans is given below: |
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31.3.21 | 31.3.20 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
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9. | PROVISIONS FOR LIABILITIES |
31.3.21 | 31.3.20 |
£ | £ |
Deferred tax | 5,212 | - |
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Deferred |
tax |
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Provided during year |
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Balance at 31 March 2021 |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.21 | 31.3.20 |
value: | £ | £ |
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Ordinary | £1 | 350,100 | 350,100 |
Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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11. | RESERVES |
Retained |
earnings |
£ |
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At 1 April 2020 |
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Profit for the year |
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At 31 March 2021 |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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13. | RELATED PARTY DISCLOSURES |
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During the period the company had transactions with EEB Consultants Limited registered in England amounting to receivables of £74,687 (2020: £74,687), in which a key management personnel has a controlling interest. |
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During the period the company had transactions with Premium Brands Distributors Limited registered in England amounting to receivables of £13,793 (2020: £46,331), in which a key management personnel has a controlling interest. |
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During the period the company had transactions with Century Holdings Limited registered in UAE amounting to receivables of £9,963 (2020: £nil), in which a key management personnel has a controlling interest. |
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During the period the company had transactions with Euro Exim Bank Limited registered in St Lucia amounting to payables of £nil (2020: £2,506), which is controlled by Century Holding Limited, in which a key management personnel has a controlling interest. |
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During the period the company had transactions with Euro Exim Bank Limited registered in St Lucia amounting to receivables of £25.081 (2020: £191,148l). Euro Exim Bank Limited (St Lucia) is controlled by Century Holding Limited, in which a key management personnel has a controlling interest. |
Euro Exim Bank Limited (Registered number: 07520196) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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14. | POST BALANCE SHEET EVENTS |
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The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity and the company's business in various material ways: |
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-Due to the imposed restrictive free movement the company established remote working procedures for all staff. |
-Due to government measures taken, the directors established strict safety protocols for staff returning back to the offices. |
-The reduction of economic activity did not proportionally reduce administrative expenses. |
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The company and its directors are unable to predict future trends due to the ongoing and evolving restrictions being placed by various governments. Depending on the duration of the COVID-19 crisis and continued global negative impact on global economic activity, the company might experience negative results. |
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As from July 2021, the directors will now charge a fixed monthly fee to Euro Exim Bank (St Lucia) Limited in pace of a percentage of income receivable. The directors have taken this decision based upon the advantages seen in cost saving by changing its nature of trade, as described in the directors report. This is not considered an adjusting event. |