ELEM_CIEF_LTD - Accounts

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.

ELEM CIEF Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6 Sherwood Rise, Nottingham, NG7 6JF.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the balance sheet date, the company had net current assets of £519,281 which includes creditors repayable within one year of £17,544. The Directors have therefore considered the basis on which the financial statements have been prepared. The company continues to be able to service its current debts and has not breached any of the covenants on the loan funding, nor does the company expect to breach any of these covenants within a period of 12months from the date of these financial statements.

In March 2020 the impact of the Covid-19 pandemic was apparent globally. In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to income and expenditure. Based on the forecasts prepared, the Directors have a reasonable expectation that the company can meet its liabilities as they fall due. Business performance has seen a significant upturn post year end as a result of the Covid-19 pandemic as more businesses seek loan funding. Business performance post year end remains very positive and in line with expectations. As such the Directors are confident that the Company remains very strong and all future liability payments can be met for a period of at least 12 months from the signing of these financial statements. The Directors have been conveyed the Auditor’s view that there is a material uncertainty in respect of going concern due to various financial covenants in place on a number of the company’s loans, however the Directors are of the view that all covenants in place will continue to be met for a period of at least 12 months from sign off, just as they have been met historically. On this basis the directors have prepared the accounts on the going concern basis.

This is the first period that financial statements have been prepared and cover a period from 6 Aug 2019 to 31 Mar 2020. Therefore, there are no comparative amount stated.

Turnover represents interest received and arrangement fees on loan amounts and is recognised on an accruals basis over the term of the loan.

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.

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, 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.

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 payments 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. Amounts 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.

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.

In March 2020 the impact of the Covid-19 pandemic was apparent globally. The directors have assessed the current and future impact of this outbreak on the company and are of the view that the business is well placed to deal with any financial difficulties that may arise, albeit they are of the view that the likelihood of any such issues occurring is remote and as such continue to prepare the accounts on the going concern basis.