Company Registration No. 07572383 (England and Wales)
OBLIX CAPITAL LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
OBLIX CAPITAL LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
OBLIX CAPITAL LTD
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 1 -
2020
2020
2019
2019
Note
£
£
£
£
Fixed assets
Tangible assets
4
216,460
272,908
Investments
5
2
2
216,462
272,910
Current assets
Debtors
8
72,368,288
92,168,414
Cash at bank and in hand
1,167,382
152,331
73,535,670
92,320,745
Creditors: amounts falling due within one year
9
(47,694,417)
(60,822,162)
Net current assets
25,841,253
31,498,583
Total assets less current liabilities
26,057,715
31,771,493
Creditors: amounts falling due after more than one year
10
(25,953,470)
(31,473,470)
Provisions for liabilities
(20,090)
(17,975)
Net assets
84,155
280,048
Capital and reserves
Called up share capital
300
300
Profit and loss reserves
83,855
279,748
Total equity
84,155
280,048
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime
within part 15 of the Companies Act 2006
.
The financial statements were approved by the board of directors and authorised for issue on 4 June 2021 and are signed on its behalf by:
Anuj Nehra
Director
Company Registration No. 07572383
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
1
Accounting policies
Company information
Oblix Capital Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
1.1
Basis of preparation of financial statements
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.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to small companies regime within part 15 of the Companies Act 2006. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 under the historical cost concept except for fair value treatment of certain instruments as discussed in note 1.9.
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertakings comprise a small-sized group as disclosed in note 6. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts
.
The financial statements have been prepared on a going concern basis under the historical cost concept except for fair value treatment of certain instruments as disclosed in note 1.9. The principal accounting policies adopted are set out below. These policies have been consistently applied from year to year, unless stated otherwise.
Management has applied judgement to recognise
bad and doubtful debt provisions against secured loans and
deemed loan
and
made estimates to bad and doubtful provisions against secured loans and fair value the deemed loan on its initial recognition and re-measurement at the year end assessed based on future cash flows as disclosed in note 1.3 and 1.9 respectively.
1.2
Going concern
Going concern of the company has been assessed as part of the going concern assessment of the group. The Directors prepared the forecasts over a period of foreseeable future of 12 months the date of approval of these financial statements. The forecasts consider the potential impact of the Covid pandemic.
true
The group adopted a policy of remote working in line with government guidelines and have continued to be operational. The group has taken swift action and implemented strategies to withstand the effect on operations primarily by aligning its cost base to the income from the secured loan portfolio. This includes effective cash management and reducing overheads. A conservative loan to value threshold allows the group to withstand credit losses and drop in market of the underlying securities. The group has continued support and access to a credit facility from the shareholder.
The company has adequate resources to remain operational throughout the pandemic and continue to be in operational existence for the foreseeable future. The Directors believe that the company is well placed to manage its business risks successfully within the expected economic outlook. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 3 -
1.3
Revenue
Revenue comprises the interest received or receivable and fees recognised on loans. Revenue is recognised as follows:
Interest income is recognised in the income statement for all financial assets measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period. The effective interest rate (EIR) is the rate that exactly discounts estimated future cash flows through the expected life, or contractual term if shorter, of the financial asset to the net carrying amount of the financial asset. When calculating the EIR, the company estimates cash flows considering all contractual terms of the financial instruments, but does not include an expectation for future credit losses. The calculation includes all fees (arrangement and broker fees payable at the time the loan is advanced and exit fees payable when the last payment is made under the loan agreement) charged to customers, and direct and incremental transaction costs.
Estimates of bad and doubtful debt provisions
The Company assesses at each reporting period whether there is objective evidence that a financial asset is impaired. A financial asset or portfolio of financial assets is impaired and impairment loss is incurred if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset.
If there is objective evidence that an impairment loss on a financial asset classified as loans and receivable has been incurred, the Company measures the amount of the loss as the difference between the carrying amount of the asset and the present value of the estimated future cash flows from the asset discounted at the effective interest rate of the instrument at initial recognition.
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:
Leasehold improvements
over the period of the lease
Website designing
25% straight line
Office equipment
25% straight line
Computer software
25% straight line
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
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.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 4 -
1.7
Cash and cash equivalents
Cash and cash equivalents
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.
1.8
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
EIR
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.
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.
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
Basic financial liabilities, including creditors, bank loans
and
loans from
fellow group companies 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 receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
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.
Offsetting
Financial asset and liabilities are offset and the net amount is presented in the financial statements when there is a legal enforceable right to offset the recognised amounts and there is an intention on a net basis to realise the asset and settle the liability simultaneously.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 5 -
1.9
Deemed loan
As a part of the funding arrangements with banks the company entered into mortgage sale agreements with Safalta Venture Limited
and Safalta Venture 2 Limited
. The loans sold
, under the agreements,
have not satisfied the criteria for the
de-
recognition of assets under FRS 102 and as a result these assets have been treated as a “deemed loan” due to Safalta Venture Limited
and a ''deemed loan'' due to Safalta Venture 2 Limited respectively
.
The company also entered into subordinated loan agreements with Safalta Venture Limited and Safalta Venture 2 Limited
which ha
ve
been offset against the
respective
deemed loans to show the “net” position. The deemed loans net of the subordinated loans as a single instruments were recognised at fair value which was the deemed net transaction price.
At each year end, the deemed loans have been measured at fair value using the expected future cash flows of the loans discounted at a market rate, with the changes in the fair values taken to the statement of income.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
expenses
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 6 -
1.14
Related party transactions
Under FRS 102 sections 33.1A and 33.14, the company is not required to disclose any related party transactions including transactions with directors and inter-company balances.
2
Employees
The average monthly number of persons employed by the company during the year was 25 (2019 - 22).
2020
2019
Number
Number
Total
25
22
3
Directors' remuneration
During the year no remuneration has been paid to the directors of the company.
4
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2019
180,764
236,647
417,411
Additions
-
31,934
31,934
At 31 March 2020
180,764
268,581
449,345
Depreciation and impairment
At 1 April 2019
27,887
116,616
144,503
Depreciation charged in the year
36,153
52,229
88,382
At 31 March 2020
64,040
168,845
232,885
Carrying amount
At 31 March 2020
116,724
99,736
216,460
At 31 March 2019
152,877
120,031
272,908
5
Fixed asset investments
2020
2019
£
£
Investment in subsidiaries
2
2
The
value of investment
s
above
are
stated at cost
.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2019 & 31 March 2020
2
Carrying amount
At 31 March 2019 & 31 March 2020
2
6
Subsidiaries
Details of the company's subsidiaries at 31 March 2020 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Exito Holdings Limited
United Kingdom
Ordinary
100.00
-
Exito Holdings 2 Limited
United Kingdom
Ordinary
100.00
-
Safalta Venture Limited
United Kingdom
Ordinary
0
100.00
Safalta Venture 2 Limited
United Kingdom
Ordinary
0
100.00
7
Financial instruments
2020
2019
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
72,073,845
91,896,328
Carrying amount of financial liabilities
Measured at fair value
73,607,689
92,019,343
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
8
Debtors
2020
2019
£
£
Amounts falling due within less than one year:
Secured loans
67,624,230
79,124,797
Corporation tax recoverable
246,049
-
Amounts due from group undertakings
21,625
242,200
Other debtors
247,279
285,997
Prepayments
48,394
272,086
68,187,577
79,925,080
Amounts falling due after one year:
Secured loans
4,180,711
12,243,334
Total debtors
72,368,288
92,168,414
9
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
56,607
59,305
Amounts due to group undertakings
2
8,257
Deemed loan due to Safalta Venture Limited
3,617,893
11,753,979
Deemed loan due to Safalta Venture 2 Limited
40,398,219
45,499,604
Corporation tax
-
234,549
Other taxation and social security
40,198
41,740
Other creditors
343,381
34,158
Accruals
3,238,117
3,190,570
47,694,417
60,822,162
The deemed loan
s
are
secured on the mortgage loans purchased. The subordinated loan
s
have
been offset against the deemed loan
s
to show the net position. At the year end, the deemed loan
s
represent the fair value of loan
s
transferred net of subordinated loan
s from Safalta Venture Limited and Safalta Venture 2 Limited
.
10
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other loans
25,953,470
31,473,470
Other loan is provided by a shareholder of the company, interest is charged at a market rate. The net movement on the loan during the year was a decrease of £5
,
520,000. The loan will be fully repayable by 31 March 2021. Therefore the carrying loan balance as at the year end of £25,953,470 is shown under creditors falling due within one year.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 9 -
11
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
20,090
17,975
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was David Pearson.
The auditor was Grant Thornton UK LLP.
13
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
649,324
878,497
14
Parent company
The company is
a wholly owned subsidiary of Oblix Group Limited, a company incorporated in England and Wales with a registered address of Acre House, 11-15 William Road, London, NW1 3ER. The smallest group into which the company is consolidated into is that of Oblix Group Limited
.
The ultimate controlling party is Y London International Limited
incorporated in the British Virgin Islands.
15
Contingent liabilities
The company is party to a cross guarantee relating to a bank loan amounting to £5,763,407
(201
9
: £
12,542,805
) in Safalta Venture Limited and £40,350,081
(201
9
: £
45,593,773
) in Safalta Venture 2
L
imited, fellow group companies.
In the period since 31 March 2020, the subsidiary entity Safalta Venture Limited has repaid the RBS loan that it was holding on in its Balance Sheet. As a result of this Oblix Capital Limited has repaid the deemed loan due to Safalta Venture Limited and has bought back all the loans previously held in Safalta Venture Limited
.
2020-03-31
2019-04-01
false
04 June 2021
CCH Software
CCH Accounts Production 2020.310
No description of principal activity
This audit opinion is unqualified
Rishi Passi
Anuj Nehra
Ms Snizhana Yesaulenko
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