The Invicta Film Partnership No.43, LLP LLP accounts

REGISTERED NUMBER: OC327396

The Invicta Film Partnership No.43, LLP

Financial Statements

5 April 2018

The Invicta Film Partnership No.43, LLP

Financial Statements

Year ended 5 April 2018

Contents	Page

Designated members and professional advisers	1

Members' report	2

Independent auditor's report to the members	4

Statement of comprehensive income	7

Statement of financial position	8

Reconciliation of members' interests	9

Statement of cash flows	11

Notes to the financial statements	12

The Invicta Film Partnership No.43, LLP

Designated Members and Professional Advisers

Designated members	Invicta Film Nominees Limited
	Sovereign Film Nominees Limited

Registered office	99 Kenton Road
	Harrow
	Middlesex
	HA3 0AN

Auditor	Malde & Co
	Chartered Certified Accountants & statutory auditor
	99 Kenton Road
	Kenton Harrow
	Middlesex
	HA3 0AN

Bankers	Bank of Scotland
	West End Office
	PO Box 17235
	EH11 1YH

The Invicta Film Partnership No.43, LLP

Members' Report

Year ended 5 April 2018

The members present their report and the financial statements of the LLP for the year ended 5 April 2018 .

Principal activities

The principal activity of the LLP during the year continued to be that of acquiring films, arranging for the leasing and distribution of these films and acting as licensor of the films. On 19th March 2018, the LLP disposed of all its assets and ceased trading operations.

Designated members

The designated members who served the LLP during the year were as follows:

Invicta Film Nominees Limited
Sovereign Film Nominees Limited

Policy regarding members' drawings and the subscription and repayment of amounts subscribed or otherwise contributed by members

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the LLP.

No member has the right to make any drawings or withdraw part of their capital without the prior written agreement of all the other ordinary members. However, in view of the fact that the LLP has ceased to trade, the amount that were due from Members have been treated as drawings.

Members' responsibilities statement

The members are responsible for preparing the members' report and the financial statements in accordance with applicable law and regulations. Company law as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires the members to prepare financial statements for each financial year. Under that law the members 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 as applied to limited liability partnerships the members 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 LLP and the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to: - select suitable accounting policies 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 LLP will continue in business. The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the members on 1 August 2018 and signed on behalf of the members by:

Mohammed Yusef

Sovereign Film Nominnes Limited

Designated Member

Registered office:

99 Kenton Road

Harrow

Middlesex

HA3 0AN

The Invicta Film Partnership No.43, LLP

Independent Auditor's Report to the Members of The Invicta Film Partnership No.43, LLP

Year ended 5 April 2018

Opinion

We have audited the financial statements of The Invicta Film Partnership No.43, LLP (the 'LLP') for the year ended 5 April 2018 which comprise the statement of comprehensive income, statement of financial position, reconciliation of members' interests, statement of cash flows and the related notes, 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 FRS 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 LLP's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP'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 LLP's affairs as at 5 April 2018 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the LLP 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 members' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

- the members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the LLP'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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The members are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships 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 - we have not received all the information and explanations we require for our audit.

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members determine is 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 members are responsible for assessing the LLP'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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor’s report 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members. - Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the LLP to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Sirishkumar V Malde FCCA

(Senior Statutory Auditor)

For and on behalf of

Malde & Co

Chartered Certified Accountants & statutory auditor

99 Kenton Road

Kenton Harrow

Middlesex

HA3 0AN

1 August 2018

The Invicta Film Partnership No.43, LLP

Statement of Comprehensive Income

Year ended 5 April 2018

		2018	2017
Note		£	£
Turnover	4	21,948,796	11,091,893

Cost of sales	200	7,160,947
	-------------	-------------
Gross profit	21,948,596	3,930,946

Gain on impairment or disposal of operations		( 85,883,412)	–
		--------------	------------
Operating profit	5	107,832,008	3,930,946

	--------------	------------
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members	107,832,008	3,930,946
	--------------	------------

All the activities of the LLP are from continuing operations.

The Invicta Film Partnership No.43, LLP

Statement of Financial Position

5 April 2018

	2018		2017
Note	£	£	£

Fixed assets

Intangible assets	7		–	35,804,729

Current assets

Debtors	8	–	77,001,754
Cash at bank and in hand		100	100
		----	-------------
		100	77,001,854

Creditors: amounts falling due within one year	9	–		9,781,296
		----		-------------
Net current assets			100	67,220,558
			----	--------------
Total assets less current liabilities			100	103,025,287
			----	--------------
Net assets			100	103,025,287
			----	--------------

Represented by:

Loans and other debts due to members

Other amounts		–	–

Members' other interests

Members' capital classified as equity	196,922,127	196,922,127
Other reserves, including the fair value reserve	(196,922,027)	(93,896,840)
	--------------	--------------
	100	103,025,287
	--------------	--------------

Total members' interests

Amounts due from members	–	(77,001,754)
Loans and other debts due to members	–	–
Members' other interests	100	103,025,287
	----	--------------
	100	26,023,533
	----	--------------

These financial statements were approved by the members and authorised for issue on 1 August 2018 , and are signed on their behalf by:

Mohammed Yusef

Invicta Film Nominees Limited

Designated Member

Registered number: OC327396

The Invicta Film Partnership No.43, LLP

Reconciliation of Members' Interests

Year ended 5 April 2018

	Members' other interests			Loans and other debts due to members less any amounts due from members in debtors		Total members' interests
	Members' capital (classified as equity)	Other reserves, including the fair value reserve	Total	Other amounts	Total	Total 2018
	£	£	£	£	£	£
Balance at 6 April 2017	196,922,127	(93,896,840)	103,025,287	(77,001,754)	(77,001,754)	26,023,533
Profit for the financial year available for discretionary division among members		107,832,008	107,832,008			107,832,008
	-------------	-------------	-------------	-------------	-------------	-------------
Members' interests after profit for the year	196,922,127	13,935,168	210,857,295	(77,001,754)	(77,001,754)	133,855,541
Other division of profits		(107,832,008)	(107,832,008)	107,832,008	107,832,008	–
Drawings				(133,855,441)	(133,855,441)	(133,855,441)
Other movements	–	(103,025,187)	(103,025,187)	103,025,187	103,025,187	–
	-------------	-------------	-------------	-------------	-------------	-------------
Balance at 5 April 2018	196,922,127	(196,922,027)	100	–	–	100
	-------------	-------------	-------------	-------------	-------------	-------------

The Invicta Film Partnership No.43, LLP

Reconciliation of Members' Interests (continued)

Year ended 5 April 2018

	Members' other interests			Loans and other debts due to members less any amounts due from members in debtors		Total members' interests
	Members' capital (classified as equity)	Other reserves, including the fair value reserve	Total	Other amounts	Total	Total 2017
	£	£	£	£	£	£
Balance at 6 April 2016	196,922,127	(93,896,840)	103,025,287	(69,344,795)	(69,344,795)	33,680,492
Profit for the financial year available for discretionary division among members		3,930,946	3,930,946			3,930,946
	-------------	-------------	-------------	-------------	-------------	-------------
Members' interests after profit for the year	196,922,127	(89,965,894)	106,956,233	(69,344,795)	(69,344,795)	37,611,438
Other division of profits		(3,930,946)	(3,930,946)	3,930,946	3,930,946	–
Drawings				(11,587,905)	(11,587,905)	(11,587,905)
Other movements	–	–	–	–	–	–
	-------------	-------------	-------------	-------------	-------------	-------------
Balance at 5 April 2017	196,922,127	(93,896,840)	103,025,287	(77,001,754)	(77,001,754)	26,023,533
	-------------	-------------	-------------	-------------	-------------	-------------

The Invicta Film Partnership No.43, LLP

Statement of Cash Flows

Year ended 5 April 2018

	2018	2017
	£	£

Cash flows from operating activities

Profit for the financial year	107,832,008	3,930,946

Adjustments for:
Amortisation of intangible assets	–	7,160,947
Accrued (income)/expenses	( 9,781,296)	496,012
	--------------	-------------
Cash generated from operations	98,050,712	11,587,905
	-------------	-------------
Net cash from operating activities	98,050,712	11,587,905
	-------------	-------------

Cash flows from investing activities

Proceeds from sale of intangible assets	35,804,729	–
	-------------	-------------
Net cash from investing activities	35,804,729	–
	-------------	-------------

Cash flows from financing activities

Payments to members representing a return on amounts subscribed or otherwise contributed	(133,855,441)	(11,587,905)
	--------------	-------------
Net cash used in financing activities	( 133,855,441)	( 11,587,905)
	--------------	-------------

Net decrease in cash and cash equivalents	–	–
Cash and cash equivalents at beginning of year	100	100
	----	----
Cash and cash equivalents at end of year	100	100
	----	----

The Invicta Film Partnership No.43, LLP

Notes to the Financial Statements

Year ended 5 April 2018

1.	General information

The LLP is registered in England and Wales. The address of the registered office is 99 Kenton Road, Harrow, Middlesex, HA3 0AN.

2.	Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships' issued in January 2017 (SORP 2017).

3.	Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. In adopting the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", it was not necessary to change any accounting policies and no prior period adjustment was required. Hence there has been no effect on the results for the current period in adopting the new Financial Reporting Standard. The financial statements are prepared in UK sterling, which is the functional currency of the entity .

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is in respect of the LLP's principal activity and represents income from the leasing of film rights, granted under lease agreements, recognised in the accounting period in which they are earned. Any other income relating to the lease will be accounted for as and when such income is received.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with Section 22 of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships'. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.

Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the statement of comprehensive income in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the statement of financial position.

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the statement of comprehensive income and are equity appropriations in the statement of financial position.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

All amounts due to members that are classified as liabilities are presented in the statement of financial position within 'Loans and other debts due to members' and are charged to the statement of comprehensive income within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the statement of financial position within 'Members' other interests'.

Intangible assets

The distribution rights of film productions are acquired for a term of 15 years and capitalised at cost. They are reviewed for impairment where events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

	Intangible asset	-	Straight line over 15 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

4.	Turnover

Turnover arises from:

	2018	2017
	£	£
Overseas sales	21,948,796	11,091,893
	-------------	-------------

The turnover is attributable to the one principal activity of the LLP. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2018	2017
	£	£
Overseas	21,948,796	11,091,893
	-------------	-------------

5.	Operating profit

Operating profit or loss is stated after charging:

	2018	2017
	£	£
Amortisation of intangible assets	–	7,160,947
	----	------------

The auditor's remuneration for the year is borne by Invicta Capital Limited as per the Services Agreement.

6.	Information in relation to members

	2018	2017
	No.	No.
Average number of members	227	227
	----	----

7.	Intangible assets

	Development costs
	£
Cost
At 6 April 2017	186,208,241
Additions	–
Disposals	( 186,208,241)
	--------------
At 5 April 2018	–
	--------------
Amortisation
At 6 April 2017	150,403,512
Charge for the year	–
Disposals	( 150,403,512)
	--------------
At 5 April 2018	–
	--------------
Carrying amount
At 5 April 2018	–
	--------------
At 5 April 2017	35,804,729
	--------------

8.	Debtors

	2018	2017
	£	£
Amounts due from members	–	77,001,754
	----	-------------

The debtors above include the following amounts falling due after more than one year:

	2018	2017
	£	£
Amounts due from members	–	77,001,754
	----	-------------

9. Creditors: amounts falling due within one year

	2018	2017
	£	£
Accruals and deferred income	–	9,781,296
	----	------------

10.	Related party transactions

In the opinion of the members there is no controlling party. No transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard No. 8.