Phanar Asset Management (Uk) Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 08902743 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 28 February 2018

for

Phanar Asset Management (UK) Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

5

Other Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

C A Frapin

O Jonson

SECRETARY:

CPA Audit Corporate Services Limited

REGISTERED OFFICE:

14 Old Queen Street

London

SW1H 9HP

REGISTERED NUMBER:

08902743 (England and Wales)

AUDITORS:

S H Landes LLP

Statutory Auditors

3rd Floor Fairgate House

78 New Oxford Street

London

WC1A 1HB

The directors present their report with the financial statements of the company for the year ended 28 February 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2017 to the date of this report.

C A Frapin

O Jonson

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director

in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of

that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

O Jonson - Director

15 June 2018

Opinion

We have audited the financial statements of Phanar Asset Management (UK) Limited (the 'company') for the year ended

28 February 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of

significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable

in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit

of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities

in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the

Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider

whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or

otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not

identified material misstatements in the Report of the Directors.

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 directors' remuneration specified by law are not made; or

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

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page two, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due

to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance

is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a

material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in

the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial

statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Steven Landes (Senior Statutory Auditor)

for and on behalf of S H Landes LLP

Statutory Auditors

3rd Floor Fairgate House

78 New Oxford Street

London

WC1A 1HB

18 June 2018

TURNOVER

81,692

-

Distribution costs

801

-

Administrative expenses

120,400

47,403

121,201

47,403

(39,509

)

(47,403

)

Other operating income

45,003

25,004

OPERATING PROFIT/(LOSS) and

PROFIT/(LOSS) BEFORE TAXATION

5,494

(22,399

)

Tax on profit/(loss)

5

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

5,494

(22,399

)

PROFIT/(LOSS) FOR THE YEAR

5,494

(22,399

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,494

(22,399

)

CURRENT ASSETS

Debtors

6

19,578

-

Cash at bank

84,651

56,603

104,229

56,603

CREDITORS

Amounts falling due within one year

7

29,466

12,334

NET CURRENT ASSETS

74,763

44,269

TOTAL ASSETS LESS CURRENT LIABILITIES

74,763

44,269

CAPITAL AND RESERVES

Called up share capital

8

71,668

66,668

Other reserves

9

20,000

-

Retained earnings

9

(16,905

)

(22,399

)

SHAREHOLDERS' FUNDS

74,763

44,269

The financial statements were approved by the Board of Directors on 15 June 2018 and were signed on its behalf by:

O Jonson - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Changes in equity

Issue of share capital

66,668

-

-

66,668

Total comprehensive income

-

(22,399

)

-

(22,399

)

Balance at 28 February 2017

66,668

(22,399

)

-

44,269

Changes in equity

Issue of share capital

5,000

-

-

5,000

Total comprehensive income

-

5,494

20,000

25,494

Balance at 28 February 2018

71,668

(16,905

)

20,000

74,763

Cash flows from operating activities

Cash generated from operations

1

3,048

(10,065

)

Net cash from operating activities

3,048

(10,065

)

Cash flows from financing activities

Share issue

5,000

66,668

Capital reserves

20,000

-

Net cash from financing activities

25,000

66,668

Increase in cash and cash equivalents

28,048

56,603

Cash and cash equivalents at beginning of year

2

56,603

-

Cash and cash equivalents at end of year

2

84,651

56,603

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

28.2.18

28.2.17

£

£

Profit/(loss) before taxation

5,494

(22,399

)

Increase in trade and other debtors

(19,578

)

-

Increase in trade and other creditors

17,132

12,334

Cash generated from operations

3,048

(10,065

)

2.	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 28 February 2018

28.2.18

1.3.17

£

£

Cash and cash equivalents

84,651

56,603

Year ended 28 February 2017

28.2.17

29.2.16

£

£

Cash and cash equivalents

56,603

-

1.	STATUTORY INFORMATION

Phanar Asset Management (UK) Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The shareholder has expressed his willingness to continue to provide financial support for the next 12 month as from the

date of approval of the financial statements in order for the company to meet its current liabilities. The director therefore

continues to adopt the going concern basis of accounting.

Significant judgements and estimates

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported

amount of assets and liabilities and reported amounts of revenue and operating costs during the reporting period. The

company does not have any estimates which could have significant effect on the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added

tax and other sales taxes.

Turnover represents amounts derived from the provision of services which fall within the company's ordinary activities,

stated net of value added tax where applicable.

Revenue comprising of consultancy fees due under the service agreement for acting as an introducer of potential clients and

opportunities to the related company, Phanar Asset Management AG, Switzerland.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are

charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and at bank, market deposits and other short-term bank

deposits with an original maturity of three months or less and therefore are subject to an insignificant risk of

changes in value.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the

effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would

be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective

interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company

does not have long term creditors.

3.	EMPLOYEES AND DIRECTORS

28.2.18

28.2.17

£

£

Wages and salaries

50,577

18,013

Social security costs

1,915

1,683

Other pension costs

36

-

52,528

19,696

The average number of employees during the year was as follows:

28.2.18

28.2.17

Management

2

1

28.2.18

28.2.17

£

£

Directors' remuneration

25,000

18,013

4.	OPERATING PROFIT/(LOSS)

The operating profit (2017 - operating loss) is stated after charging:

28.2.18

28.2.17

£

£

Other operating leases

32,741

7,200

Auditors' remuneration

6,000

-

Foreign exchange differences

5,227

-

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 28 February 2018 nor for the year ended 28 February 2017.

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:

28.2.18

28.2.17

£

£

Profit/(loss) before tax

5,494

(22,399

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 20%)

1,044

(4,480

)

Effects of:

Tax losses carried forward

(1,044

)

4,480

Total tax charge

-

-

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.18

28.2.17

£

£

Other debtors

2,158

-

Prepayments

17,420

-

19,578

-

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.18

28.2.17

£

£

Trade creditors

14,066

1

Social security and other taxes

-

1,493

Other creditors

3,520

1,000

Accrued expenses

11,880

9,840

29,466

12,334

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

28.2.18

28.2.17

value:

£

£

71,668

Ordinary

1

71,668

66,668

9.

RESERVES

Retained

Other

earnings

reserves

Totals

£

£

£

At 1 March 2017

(22,399

)

-

(22,399

)

Profit for the year

5,494

5,494

Capital reserves

-

20,000

20,000

At 28 February 2018

(16,905

)

20,000

3,095

10.	RELATED PARTY DISCLOSURES

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is O Jonson.