Company Registration No. 07572383 (England and Wales)
OBLIX CAPITAL LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
OBLIX CAPITAL LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
OBLIX CAPITAL LTD
BALANCE SHEET
AS AT 31 MARCH 2021
2021-03-31
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
148,190
216,460
Investments
4
2
2
148,192
216,462
Current assets
Debtors
5
44,906,730
72,368,288
Cash at bank and in hand
376,961
1,167,382
45,283,691
73,535,670
Creditors: amounts falling due within one year
6
(18,047,670)
(47,694,417)
Net current assets
27,236,021
25,841,253
Total assets less current liabilities
27,384,213
26,057,715
Creditors: amounts falling due after more than one year
7
(27,323,470)
(25,953,470)
Provisions for liabilities
(10,928)
(20,090)
Net assets
49,815
84,155
Capital and reserves
Called up share capital
8
300
300
Profit and loss reserves
49,515
83,855
Total equity
49,815
84,155
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
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
.
OBLIX CAPITAL LTD
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 25 March 2022 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 2021
- 3 -
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
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 as applicable to companies subject to the small companies regime. 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 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
.
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
Covid has continued to affect economic recovery and business confidence in the UK . This has led to limitations on liquidity in the debt markets and consequences on new lending. Lockdowns, shortage in supply chains, longer response times due to self isolation are some of the challenges resulting in lending businesses focus on their loan portfolios. In these circumstances the company has worked closely with their customers and existing development projects have continued to receive funding support.
true
The company has access to a credit facility from its shareholder with adequate resources to continue 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.
1.3
Turnover
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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cos
t
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.
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 and other short-term liquid investments with original maturities of three months or less.
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.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
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.
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
1 A
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.
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.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
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.
1.14
Government grants
Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
14
25
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
3
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2020
180,764
268,581
449,345
Additions
11,700
11,700
At 31 March 2021
180,764
280,281
461,045
Depreciation and impairment
At 1 April 2020
64,040
168,845
232,885
Depreciation charged in the year
35,664
44,306
79,970
At 31 March 2021
99,704
213,151
312,855
Carrying amount
At 31 March 2021
81,060
67,130
148,190
At 31 March 2020
116,724
99,736
216,460
4
Fixed asset investments
2021
2020
£
£
Investment in subsidiaries
2
2
The
value of investment
s
above
are
stated at cost
.
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2020 & 31 March 2021
2
Carrying amount
At 31 March 2019 & 31 March 2020
2
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
5
Debtors
2021
2020
£
£
Amounts falling due within less than one year:
Secured loans
44,510,225
67,624,230
Corporation tax recoverable
246,049
Amounts due from group undertakings
51,582
21,625
Other debtors
242,606
247,279
Prepayments
102,317
48,394
44,906,730
68,187,577
Amounts falling due after one year:
Secured loans
4,180,711
Total debtors
44,906,730
72,368,288
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
709,034
56,607
Amounts due to group undertakings
2
2
Deemed loan due to Safalta Venture Limited
80,158
3,617,893
Deemed loan due to Safalta Venture 2 Limited
14,155,380
40,398,219
Other taxation and social security
4,942
40,198
Other creditors
26,611
343,381
Accruals
3,141,543
3,238,117
18,117,670
47,694,417
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
.
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other loans
27,323,470
25,953,470
Other loan is provided by a shareholder of the company, interest is charged at a market rate.
OBLIX CAPITAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300
300
300
300
9
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:
2021
2020
£
£
649,324
10
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.
11
Contingent liabilities
The company is party to a cross guarantee relating to a bank loan amounting to £
Nil
(20
20
: £5,763,407) in Safalta Venture Limited and £
1
4,
597
,
733
(20
20
: £40,350,081) in Safalta Venture 2
L
imited, fellow group companies.