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Registered number: 09729173
INFINITI FILMS LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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INFINITI FILMS LIMITED
COMPANY INFORMATION
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INFINITI FILMS LIMITED
CONTENTS
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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INFINITI FILMS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2016
The directors present their report and the financial statements for the period ended 31 December 2016.
The principal activity of the company is the production of co-extruded and blown films.
Infiniti Films was set up in August 2015. In preparation for the start of sales and production, many months were spent developing new films and identifying new suppliers from around Europe and the Far East, with deliveries commencing in May 2016. In 2016 two slitter rewinders were installed to compliment finished goods for the printing and graphic markets.
We now have established agents in the EU promoting the films we manufacture in the UK.
Our first year of operation concentrated on establishing a foothold in these markets and proving to the graphics printers that our new films are among the best in Europe.
We are looking for substantial growth during 2017 and plan to become a leading supplier of special barrier films for the food packaging markets. It is also planned for Infiniti Films to achieve BRC accreditation to compliment the markets we already specialise in.
Directors' responsibilities statement
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The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are 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. In preparing these financial statements, the directors are required to:
·select suitable accounting policies for the Company's financial statements and then apply them consistently;
·make judgments and accounting estimates that are reasonable and prudent;
·prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
The directors who served during the period were:
R H Fearnley (appointed 12 August 2015)
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J K Findlay (appointed 17 October 2016)
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A S Green (appointed 6 October 2015, resigned 17 October 2016)
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INFINITI FILMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2016
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on 11 April 2017 and signed on its behalf.
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INFINITI FILMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Interest payable and expenses
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(Loss)/profit for the period
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There were no recognised gains and losses for 2016 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2016.
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The notes on pages 6 to 18 form part of these financial statements.
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INFINITI FILMS LIMITED
REGISTERED NUMBER: 09729173
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of Companies Act 2006.
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.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 April 2017.
The notes on pages 6 to 18 form part of these financial statements.
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INFINITI FILMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Comprehensive income for the period
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Shares issued during the period
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The notes on pages 6 to 18 form part of these financial statements.
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
The company is a private company limited by shares, incorporated under the Companies Act 2006 and registered in England and Wales (no.9729173). The address of the registered office is c/o Langtons, The Plaza, 100 Old Hall Street, Liverpool, Merseyside L3 9QJ.
These financial statements present information about the company as an individual undertaking; it is not a member of a group of companies. The principal activity of the company is the production of co-extruded and blown films.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The presentation currency of these financial statements is £ sterling; the financial statements are rounded to the nearest £.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
·the Company has transferred the significant risks and rewards of ownership to the buyer;
·the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
·the amount of revenue can be measured reliably;
·it is probable that the Company will receive the consideration due under the transaction; and
·the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
·the amount of revenue can be measured reliably;
·it is probable that the Company will receive the consideration due under the contract;
·the stage of completion of the contract at the end of the reporting period can be measured reliably; and
·the costs incurred and the costs to complete the contract can be measured reliably.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
All borrowing costs are recognised in the Statement of Comprehensive Income in the period in which they are incurred.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The directors have made judgments regarding the depreciation of fixed assets, the carrying value of stocks and the provision for bad and doubtful debts.
Page 9
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating (loss)/profit is stated after charging:
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Depreciation of tangible fixed assets
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Other operating lease rentals
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Page 10
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Staff costs, including directors' remuneration, were as follows:
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The average monthly number of employees, including the directors, during the period was as follows:
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Page 11
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Interest payable and similar charges
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Other loan interest payable
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Taxation on profit on ordinary activities
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Page 12
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
9.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is lower than the standard rate of corporation tax in the UK of 20%. The differences are explained below:
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(Loss)/profit on ordinary activities before tax
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(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20%
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Expenses not deductible for tax purposes
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Capital allowances for period in excess of depreciation
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Unrelieved tax losses carried forward
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Total tax charge for the period
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Factors that may affect future tax charges
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the company has tax losses of £300,500 which are available to be carried forward and offset against future trading profits.
The deferred tax asset arising from the excess of tax losses over fixed asset timing differences amounting to £48,000 has not been recognised in these accounts.
Page 13
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Charge for the period on owned assets
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Finished goods and goods for resale
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Stock recognised in cost of sales during the period as an expense was £301,976.
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Trade debtors excluding factored debts
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Prepayments and accrued income
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Page 14
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
12.Debtors (continued)
Factored debts are secured by a fixed and floating charge over the assets and undertaking of the company.
Included within other debtors due within one year is a loan to R H Fearnley, a director, amounting to £4,938. Amounts repaid during the period totalled £NIL. The main conditions were as follows:
The loan is interest free, unsecured and has no fixed repayment terms.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Proceeds of factored debts
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Accruals and deferred income
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Other loans are secured by a fixed and floating charge over the assets and undertaking of the company.
the proceeds of factored debts are secured by a fixed and floating charge over the assets and undertaking of the company.
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Page 15
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Creditors: Amounts falling due after more than one year
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Secured loans
Other loans are secured by a fixed and floating charge over the assets and undertaking of the company.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Page 16
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Financial assets measured at fair value through profit or loss
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Other financial liabilities measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise trade and other debtors and bank and cash balances.
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Other financial liabilities measured at fair value through profit or loss comprise trade and other creditors and accruals and bank and other loans.
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Shares classified as equity
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Allotted, called up and fully paid
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31,250 Ordinary shares of £1 each
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During the period 32,500 ordinary shares of £1 each, having an aggregate nominal value of £32,500, were issued. The consideration received, excluding share premium, was £32,500.
Share premium account
Share premium account represents the price per share paid by investors in excess of the nominal value of the shares issued.
Profit and loss account
Retained earnings includes all current and prior period retained profits and losses.
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Commitments under operating leases
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The Company had no commitments under the non-cancellable operating leases as at the reporting date.
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Page 17
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INFINITI FILMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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Related party transactions
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British Polythene Limited - Sales to
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British Polythene Limited - Balance due from
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British Polythene Limited - Loan due to
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During the period the company loaned money to R H Fearnley, a director and shareholder.
British Polythene Limited is a shareholder.
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The company is controlled by R H Fearnley.
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