IPOWER_MICRO_CHP_LIMITED - Accounts

The directors present their report and financial statements for the year ended 31 March 2016.

The company was incorporated on 6 November 2013 and commenced trading on 30 November 2014.

The principal activity of the company is that of facilitating the increased usage and commercial development of low carbon energy technologies.principal activity of the company is that of facilitating the increased usage and commercial development of low carbon energy technologies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of iPower Micro CHP Limited for the year ended 31 March 2016 set out on pages 2 to 3 from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Chartered Accountants in Scotland, we are subject to its ethical and other professional requirements which are detailed at icas.com/regulations.

This report is made solely to the Board of Directors of iPower Micro CHP Limited, as a body, in accordance with the terms of our engagement letter dated 24 November 2014. Our work has been undertaken solely to prepare for your approval the financial statements of iPower Micro CHP Limited and state those matters that we have agreed to state to the Board of Directors of iPower Micro CHP Limited, as a body, in this report in accordance with Instutute of Chartered Accountants in Scotland as detailed at icas.com/regulations. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than iPower Micro CHP Limited and its Board of Directors as a body, for our work or for this report.

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Going concern

Due to the issue encountered with the liquidation of a supplier to whom a deposit was paid, the company is not in a position to meet the repayment terms of a loan from Social Growth Fund LLP.  Social Investment Scotland, who manage the Social Growth Fund LLP’s lending, has indicated that it does not intend to enforce the loan repayment terms in their current form, and has confirmed its willingness to restructure the loan into a form which would not jeopardise the continued trading of the company, or its associates, as going concerns.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

The loan from Social Growth Fund LLP, included in other creditors, is secured by way of a cross guarantee on the company's assets from the parent company iPower Energy Limited. Interest is charged on the loan at 8% per annum, and there is a repayment holiday until the suitable form of restructure is put in place.

iPower Micro CHP Limited and iPower Energy Limited have a cross guarantee detailing that each company which is party to the deed guarantees to each creditor payment in full any debt in accordance with the deed of cross guarantee. The SIS loan of £531,521 (2015: £520,345) taken out by iPower Micro CHP is cross guaranteed between both iPower Micro CHP and iPower Energy Limited

The controlling party and parent company is iPower Energy Ltd, a company registered in Scotland.

iPower Energy Limited, the parent company, supplied £1,500 (2015: £20,833) of services to the company during the period. These services were supplied on normal commercial terms.

During the year the company made loans to and received loans from iPower Energy, the parent company. At the year end the balance due from iPower Energy was £90 (2015: £nil) which is included within debtors.