Eland Property Investments LLP - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: OC388963 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2017

FOR

ELAND PROPERTY INVESTMENTS LLP

Page

General Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DESIGNATED MEMBERS:

S P Mace

A M Southwell

REGISTERED OFFICE:

105 Victoria Street

London

SW1E 6QT

REGISTERED NUMBER:

OC388963 (England and Wales)

ACCOUNTANTS:

George Hay & Company

Chartered Accountants

83 Cambridge Street

Pimlico

London

SW1V 4PS

CURRENT ASSETS

Debtors

3

968,673

952,031

Investments

4

4,287,718

3,932,098

Cash at bank

250,530

268,230

5,506,921

5,152,359

CREDITORS

Amounts falling due within one year

5

295,251

335,672

NET CURRENT ASSETS

5,211,670

4,816,687

TOTAL ASSETS LESS CURRENT LIABILITIES

and

NET ASSETS ATTRIBUTABLE TO MEMBERS

5,211,670

4,816,687

LOANS AND OTHER DEBTS DUE TO MEMBERS

5,201,670

4,806,687

MEMBERS' OTHER INTERESTS

Capital accounts

10,000

10,000

5,211,670

4,816,687

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

5,201,670

4,806,687

Members' other interests

10,000

10,000

5,211,670

4,816,687

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 31st March 2017.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to small LLPs.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP on 23rd October 2017 and were signed by:

A M Southwell - Designated member

S P Mace - Designated member

1.	STATUTORY INFORMATION

Eland Property Investments LLP is registered in England and Wales. The LLP's registered number and registered

office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable UK accounting standards,

including Financial Reporting Standard 102 - The Financial Reporting Standard applicable in the United

Kingdom (FRS102) and with the Companies Act 2006.

The financial statements have been prepared on the historical cost basis except for the modifications to a fair

value approach for certain financial instruments as specified in the accounting policies below.

The financial statements are prepared on a going concern basis, as the Designated Members are satisfied that the

Partnership has the resources to continue in business for the foreseeable future.

The financial statements are presented in Sterling (£).

Significant judgements and estimates

The preparation of the financial statements require management to make judgements, estimates and assumptions

that affect the amount reported for assets and liabilities at the balance sheet date and the amount reported for

revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from

those estimates. Management believes that the underlying assumptions are appropriate and that the Partnership's

financial statements therefore present the financial position and results fairly.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are

significant to the financial statements, are disclosed below.

Credit impairment charge

The Partnership reviews its debt instrument receivables on an on-going basis to assess the level of impairment.

Future cashflows are estimated on the basis of contractual cashflows of the assets, adjusted on the basis of

current observable date to reflect the effect of current conditions. The face value amount of the loans before

impairment as at 31st March 2017 was £15,130,979 (2016 £17,377,927).

Interest income

Interest income on loans and advances is calculated using the effective interest method which allocates any fees

receivable over the expected life of the assets and represents the return on credit risk faced by the entity. The

effective interest method requires the company to estimate future cashflows, in some cases based on experience

of behaviour, the terms of the loan agreement and the expected lives of the receivable.

Ageing profile of loan/debt repayments

When calculating the amortised cost of a financial instrument (asset or liability) the repayment profiles of the

future cash receipts or payments are profiled over the life time of the financial instrument. The profile reflects the

contractual repayment of the loans and is calculated at each reporting date.

Turnover - revenue recognition

Interest income

Interest income on loans and advances is calculated using the effective interest method which allocates any fees

receivable over the expected life of the assets and represents the return on credit risk faced by the entity. The

effective interest method requires the company to estimate future cashflows, in some cases based on experience

of behaviour, the terms of the loan agreement and the expected lives of the receivable.

The effective interest rate is calculated at the time of initiating (or acquiring) the loan facility and the calculation

is based on estimating future cash flows over the shorter of the contractual life of the loan or the expected

behavioural life (i.e. where a borrower may redeem a loan earlier than the contractual term).

The expected life assumptions utilise repayment profiles to represent how borrowers are expected to repay. The

Partnership has limited historical experience to support these profiles and therefore management must apply

judgement, in addition to any historical information available.

Redemptions: Derecognition of financial assets

Financial assets are derecognised when the contractual rights to receive the cash flows from these assets (loans

and advances) have ceased to exist or the assets have been transferred and substantially all the risks and rewards

of ownership of the assets are also transferred.

Borrowing costs

All borrowing costs are amortised over the expected life of the loan.

Financial instruments

The Partnership only enters in basic financial instrument transactions that result in the recognition of financial

assets and financial liabilities such as trade debtors and creditors, loans to related parties and loans and advances

to third party borrowers.

Debt instruments that are payable or receivable within 1 year such as trade debtors and creditors are measured

both initially and subsequently at the undiscounted amount of cash or other consideration expected to be received

or paid.

Financial Assets

Loans and advances

Loans and advances comprise financial assets that have been acquired at a significant discount from their face

value, which reflects incurred credit losses. The initial yield is derived by establishing the rate that discounts

expected future cash receipts from each loan to its carrying amount on recognition.

Loans and advances are recognised as basic financial instruments and are measured on an amortised cost basis.

Initial recognition and measurement of loans acquired is at transaction price, being the fair value of the

consideration paid or payable plus any directly attributable transaction costs. Subsequent measurement of loans

is on an amortised cost basis using the Effective Interest Rate method (EIR).

Once EIR is calculated on acquisition of a loan it cannot be changed. Depending on how the loan performs,

future cashflows can be re-assessed which could result in an adjustment to the carrying value of the loan.

Impairment of financial assets

At each reporting date, financial assets that are measured at cost or amortised cost are assessed for objective

evidence of impairment. If evidence of impairment is found the recoverable amount of the asset is then estimated

in order to determine the extent of the impairment loss and an impairment charge is subsequently recognised in

the Statement of Comprehensive Income.

The credit impairment charge is calculated by measuring the difference between the carrying amount of the loan,

the collateral value of the underlying security and the present value of estimated future cashflows, discounted at

the Effective Interest Rate calculated on initial recognition. The impairment loss is reported as a deduction from

the carrying value of the loan and recognised in the Statement of Comprehensive income as a 'Credit impairment

charge'.

If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related

objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss

is reversed. Any subsequent reversal of an impairment loss is recognised in the Statement of Comprehensive

Income to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits held with financial institutions.

Financial Liabilities

Creditors

All creditors have been classified as basic financial instruments and are measured at their transaction price.

.

Financial risk management

A financial institution under FRS 102 is defined to include "any entity whose principle activity is to generate

wealth or manage risk through financial instruments"; therefore, the principal risks and uncertainties faced by the

Partnership need to be identified and can be classified under several main areas of risk - credit risk, interest rate

risk, liquidity risk, conduct risk and operational risk.

Credit risk

Credit risk is the risk of financial loss to the Partnership if an obligor (borrower) or counterparty to a financial

instrument fails to meet its contractual obligations, and arises principally from the Partnership's loans and

advances to customers.

Credit risk is minimised through the holding of collateral against loans and advances to customers principally in

the form of first and second charges over commercial real estate, floating charges over business assets and

personal guarantees from borrowers which the Partnership has the ability to call on in the event of default by the

borrower.

In addition, regular performance reviews of historic and forecast financial information supplied by the borrower,

along with credit checks conducted through third party credit reference agencies and active management of

arrears by a dedicated account manager, reporting to a Designated Member, contribute to the on-going

management and mitigation of default risk.

The exposure in relation to loans, members loans and cash balances at 31st March 2017 amounted to £5,506,921

Interest rate risk

Interest rate risk is the risk that changes in interest rates will affect the Partnership's income or the value of its

holdings in financial instruments. The Partnership is potentially exposed to the risk of loss from fluctuations in

the future cash flows or fair values of financial instruments because of a change in market interest rates. The

Partnership seeks to minimise interest rate risk by entering into fixed interest rate agreements on all loans and

advances to borrowers.

Liquidity risk

Liquidity risk is the risk that the Partnership will encounter difficulty in meeting obligations associated with its

financial liabilities as they fall due. The Partnership expects to meet all its financial obligations under normal

market conditions through operating cashflow surpluses and endeavours to maintain an appropriate liquidity

buffer at all times.

In the event of a severe liquidity stress where operating cash flows are deemed insufficient to meet financial

obligations then the Partnership has both formal and informal credit facilities in place to cover any shortfall and

ensure it can continue as a going concern.

Conduct risk

Conduct risk is the risk that the Partnership's operating model, culture or actions result in unfair outcomes for

customers. Therefore, the effective management of risks impacting on customers is prioritised. Conduct risk may

arise from any aspect of the way the Partnership's business is conducted and a range of internal controls are in

place to mitigate this risk.

Operational risk

Operating risk is the risk of direct or indirect loss from failed or inadequate processes, people or systems, or

exposure to external events such as failure in IT systems. The Partnership aims to maintain robust operational

systems and controls and has put in place procedures detailing key operational requirements, business risks and

internal control processes to manage these risks.

3.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Amounts owed by associates

70

20,000

Other debtors

968,603

932,031

968,673

952,031

4.	CURRENT ASSET INVESTMENTS

2017

2016

£

£

Carrying value of loan portfolio

4,271,378

3,932,098

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

-

1

Other creditors

295,251

335,671

295,251

335,672

6.	RELATED PARTY DISCLOSURES

The LLP paid office cost recharges of £13,650 (2016 - £286,139) and a profit distribution of £139,750 (2016 -

Nil) in the year under review to Bergen Capital Management Limited, a company in which Messrs Mace and

Southwell are directors and shareholders.

At the year end there was a loan outstanding due from Bergen Capital Management Limited of £70 (2016 -

£20,000).