European Capital Markets Ltd - Limited company accounts 16.3

REGISTERED NUMBER: 05004266 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 January 2017

for

European Capital Markets Ltd

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Profit and Loss and Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTOR:

G A Ameri

SECRETARY:

@UKPLC Client Secretary Ltd

REGISTERED OFFICE:

52 Kingsway Place

Sans Walk

London

EC1R 0LU

REGISTERED NUMBER:

05004266 (England and Wales)

AUDITORS:

Sawin & Edwards Statutory Auditors

52 Kingsway Place

Sans Walk

London

EC1R 0LU

The director presents his strategic report for the year ended 31 January 2017.

REVIEW OF BUSINESS

The key financial and other performance indicators during the year were as follows:

2016

2016

Change %

£

£

Turnover

-

-

-

Profit /(loss) for the year after tax

1,579

(5,333)

+ 129.6

Equity shareholder fund

206,323

204,744

+ 0.77

The company failed to achieve any turnover in the year but is actively seeking to promote itself in the current

period.

Profit after tax arising this time. Profit has arisen was mainly due to an increase in the foreign exchange gain

in the year.

Equity shareholder fund increased by 0.77% in the year. This increase was mainly due to a profit made in the

year.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company are its exposure to currency movements on its cash balances and

deposits.

The principal uncertainty remains the ability of the company to generate turnover and gain new business

against a background of volatile financial markets.

ON BEHALF OF THE BOARD:

G A Ameri - Director

23 May 2017

The director presents his report with the financial statements of the company for the year ended 31 January 2017.

PRINCIPAL ACTIVITY

The company's principal activity during the year continued to be the provision of financial services. The

company is authorised by the FCA to carry out regulated work.

DIVIDENDS

A dividend of £Nil (2016: £32,800) was paid in the year.

FUTURE DEVELOPMENTS

The company continues to pursue a number of corporate finance activities.

DIRECTOR

G A Ameri held office during the whole of the period from 1 February 2016 to the date of this report.

FINANCIAL INSTRUMENTS

See note 16 to the accounts.

.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law

the director has elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he

ought to have taken as a director in order to make himself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sawin & Edwards Statutory Auditors, will be proposed for re-appointment at the forthcoming

Annual General Meeting.

ON BEHALF OF THE BOARD:

G A Ameri - Director

23 May 2017

We have audited the financial statements of European Capital Markets Ltd for the year ended

31 January 2017 on pages seven to sixteen. The financial reporting framework that has been applied in their

preparation is 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'.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company's members as a body, for our audit work, for this report, or for the opinions we

have formed.

Respective responsibilities of director and auditors

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient

to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to

the company's circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the director; and the overall presentation of the

financial statements. In addition, we read all the financial and non-financial information in the Strategic

Report and the Report of the Director to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially

inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware

of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 January 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the

Strategic Report and the Report of the Director for the financial year for which the financial statements are

prepared is consistent with the financial statements, and has been prepared in accordance with applicable

legal requirements. In the light of the knowledge and understanding of the company and its environment, we

have not identified any material misstatements in the Strategic Report or the Report of the Director.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

W K Sawin (Senior Statutory Auditor)

for and on behalf of Sawin & Edwards Statutory Auditors

52 Kingsway Place

Sans Walk

London

EC1R 0LU

23 May 2017

TURNOVER

-

-

Administrative expenses

(13,961

)

(12,835

)

(13,961

)

(12,835

)

Other operating income

15,235

7,212

OPERATING PROFIT/(LOSS)

4

1,274

(5,623

)

Interest receivable and similar income

305

290

PROFIT/(LOSS) BEFORE TAXATION

1,579

(5,333

)

Tax on profit/(loss)

5

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,579

(5,333

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,579

(5,333

)

FIXED ASSETS

Tangible assets

7

2,699

4,244

CURRENT ASSETS

Debtors

8

556

563

Cash at bank

215,130

216,813

215,686

217,376

CREDITORS

Amounts falling due within one year

9

(12,062

)

(16,876

)

NET CURRENT ASSETS

203,624

200,500

TOTAL ASSETS LESS CURRENT LIABILITIES

206,323

204,744

CAPITAL AND RESERVES

Called up share capital

10

150,000

150,000

Retained earnings

11

56,323

54,744

SHAREHOLDERS' FUNDS

206,323

204,744

The financial statements were approved by the director on 23 May 2017 and were signed by:

G A Ameri - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2015

150,000

92,877

242,877

Changes in equity

Dividends

-

(32,800

)

(32,800

)

Total comprehensive income

-

(5,333

)

(5,333

)

Balance at 31 January 2016

150,000

54,744

204,744

Changes in equity

Total comprehensive income

-

1,579

1,579

Balance at 31 January 2017

150,000

56,323

206,323

Cash flows from operating activities

Cash generated from operations

14

(1,899

)

702

Net cash from operating activities

(1,899

)

702

Cash flows from investing activities

Purchase of tangible fixed assets

(89

)

(1,442

)

Interest received

305

290

Net cash from investing activities

216

(1,152

)

Cash flows from financing activities

Equity dividends paid

-

(32,800

)

Net cash from financing activities

-

(32,800

)

Decrease in cash and cash equivalents

(1,683

)

(33,250

)

Cash and cash equivalents at beginning of year

15

216,813

250,063

Cash and cash equivalents at end of year

15

215,130

216,813

1.	GENERAL INFORMATION

European Capital Market Limited is a company incorporated in England and Wales. The company's

registered office is 52 Kingsway Place, Sans Walk, London, EC1R 0LU. The company registration

number is 05004266. The principal place of business is 25-27 Sloane Court West, London, SW3 4TD.

The company's functional and presentational currency is pounds sterling.

The director has authorised the issue of these financial statements on the date of the statement as set

out on page 8

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

-

20% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss and

Statement of Comprehensive Income, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable

profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling

at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account

in arriving at the operating result.

Financial instruments

Financial assets and financial liabilities are recognised on the balance sheet when the Company

becomes a party to the contractual provisions of the instrument.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in

operational existence for the foreseeable future. The company therefore continues to adopt the going

concern.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs and director' remuneration for the year ended 31 January 2017 nor for the

year ended 31 January 2016.

4.	OPERATING PROFIT/(LOSS)

The operating profit (2016 - operating loss) is stated after charging/(crediting):

2017

2016

£

£

Depreciation - owned assets

1,634

2,107

Audit fees

3,000

3,000

Other services relating to the FCA audit

2,000

2,000

Other services relating to the

preparation of financial

statements

2,000

2,000

Other services relating to taxation

500

500

Foreign exchange differences

(15,235

)

(7,212

)

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 January 2017 nor for the year ended

31 January 2016.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The

difference is explained below:

2017

2016

£

£

Profit/(loss) before tax

1,579

(5,333

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

316

(1,067

)

Effects of:

Accelerated depreciation

(237

)

(45

)

Non deductible expenses

114

104

Utilisation of losses

(193

)

-

Increase in potential UK tax losses

-

1,008

Total tax charge

-

-

6.

DIVIDENDS

2017

2016

£

£

Ordinary shares shares of 1 each

Interim

-

32,800

7.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 February 2016

44,280

Additions

89

At 31 January 2017

44,369

DEPRECIATION

At 1 February 2016

40,036

Charge for year

1,634

At 31 January 2017

41,670

NET BOOK VALUE

At 31 January 2017

2,699

At 31 January 2016

4,244

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Other debtors

365

372

Prepayments and accrued income

191

191

556

563

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Director's loan

4,562

9,376

Accruals and deferred income

7,500

7,500

12,062

16,876

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

150,000

Ordinary shares

1

150,000

150,000

11.

RESERVES

Retained

earnings

£

At 1 February 2016

54,744

Profit for the year

1,579

At 31 January 2017

56,323

12.	RELATED PARTY DISCLOSURES

During the year the director, G A Ameri, paid expenses on behalf of the company for £4,561 (2016;

£3,016). During the year the company repaid £9,376 (2016: £Nil) to G A Ameri. At the year end, the

company owed £4,562 (2016: £9,376) to G A Ameri.

13.	ULTIMATE CONTROLLING PARTY

The company is under the control of the director, G A Ameri, who owns 100% of the issued share

capital of the company.

14.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit/(loss) before taxation

1,579

(5,333

)

Depreciation charges

1,634

2,107

Finance income

(305

)

(290

)

2,908

(3,516

)

Decrease in trade and other debtors

7

57

(Decrease)/increase in trade and other creditors

(4,814

)

4,161

Cash generated from operations

(1,899

)

702

15.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 31 January 2017

31.1.17

1.2.16

£

£

Cash and cash equivalents

215,130

216,813

Year ended 31 January 2016

31.1.16

1.2.15

£

£

Cash and cash equivalents

216,813

250,063

16.	FINANCIAL INSTRUMENTS

The company’s principal financial instruments comprise cash, short term deposits and short term

investments, the main purpose of which is to finance the company’s operations and expansion. The

company has other financial instruments such as trade debtors and trade creditors which arise directly

from normal trading.

The company has not entered into any derivative or other hedging instruments.

The main risks arising from the company’s financial instruments are interest rate risk, market risk and

liquidity risk. The Board reviews and agrees policies for managing each of these risks and these are

summarised below.

Interest rate risks

The company manages its liquidity through the use of cash deposits at variable rates of interest for a

variety of short term periods, depending on cash requirements. The rates are reviewed regularly and

the best rate obtained in the context of the company’s need.

The interest rate exposure of the company’s cash deposits was as follows:-

Euro cash deposits £164 (2016: £4,586)

US$ cash deposits £50 (2016: £137,631)

Sterling cash deposits £214,915 (2016: £74,596)

Liquidity risks

The company’s policy throughout the year has been to ensure that it has adequate liquidity by careful

management of its working capital.

Currency risks

The company, wherever possible invoices in sterling, but in the instances when the company invoices

in a foreign currency the company does not hedge the asset . As noted above the company also holds

cash deposits in foreign currencies which give rise to an exchange risk of losses arising from adverse

currency movements.

17.	CAPITAL REQUIREMENT

The company's capital requirement under the Financial Conduct Aucthority regulations amounted to

£43,000 as at 31 January 2017.