REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED |
REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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FOR |
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INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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INDEPENDENT AUDITORS : |
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10 Orange Street |
Haymarket |
London |
WC2H 7DQ |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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BALANCE SHEET |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Investments | 5 |
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CURRENT ASSETS |
Cash at bank |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT LIABILITIES |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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RESERVES |
Retained earnings | 8 |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | STATUTORY INFORMATION |
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Ingenious Real Estate Enterprises 2 Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The principal activity of the Company is the issuance of commercial loans to prospective borrowers for the purpose of funding residential, commercial and mixed use development projects to generate returns for its shareholders. The Company carries on these activities through its membership of Ingenious Real Estate Finance LLP ("the partnership"). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going Concern |
The Company's business activities, together with the factors likely to affect its future development, performance and position have been reviewed by the directors. Having assessed its financial position,profit and cashflow forecasts, the directors believe that the Company is well placed to manage its business successfully and will be able to maintain positive cashflows for the foreseeable future. |
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The directors have considered the impact of the Covid-19 pandemic on the Company. At the time of approving the financial statements, the full economic impact of the pandemic is still unknown, but the directors acknowledge that there is a high degree of macro-economic uncertainty and a related potential future slowdown in the residential real estate market in the UK. At the moment, there is no business interruption for the Company. |
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At this stage, it is not yet possible to assess the full extent of the pandemic on the market. Whilst there is uncertainty forecasting the overall impact of the pandemic on the real estate industry, there are currently not considered to be any indicators of a going concern threat to the Company as a consequence of the pandemic. Therefore, the directors have cautiously concluded that the impact of the pandemic on the Company is limited for the year and have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. |
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Accordingly, the Company continues to adopt the going concern basis in preparing the Annual Report and Financial Statements. |
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Significant judgements and estimates |
In the application of the Company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The Company 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. |
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Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
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Short term debtors are measured at transaction price, less any impairment. |
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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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Taxation |
Tax is recognised in the Income Statement, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
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The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. |
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Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that: |
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
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Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Loans |
Non-derivative financial liabilities with fixed or determinable repayments that are not quoted in an active market are classified as loans. Loans are initially recognised at fair value of the consideration received plus directly related transaction costs. They are subsequently measured at amortised cost using the effective interest method. Arrangement fees and interest payable on financial liabilities that are classified as loans, are charged to the profit and loss account. |
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The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating the interest payable over the expected life of the liability. The effective interest rate is the rate that exactly discounts estimated future cashflows to the instrument's initial carrying amount. Calculation of the effective interest rate takes into account fees payable, that are an integral part of the instrument yield and transaction costs. All contractual terms of a financial instrument are considered when estimating future cash flows. |
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A financial liability is removed from the balance sheet when the obligation is discharged, or cancelled, or expires. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2019 - NIL). |
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4. | AUDITORS' REMUNERATION |
2020 | 2019 |
£ | £ |
Fees payable to the company's auditors for the audit of the
company's financial statements |
4,500 |
4,500 |
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5. | FIXED ASSET INVESTMENTS |
Interest |
in other |
participatin |
interests |
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Cost |
At 1 January 2020 | 81,977,509 |
Additions | 866,651 |
Disposals | (8,720,528 | ) |
Share of profit/(loss) | 5,070,757 |
At 31 December 2020 | 79,194,389 |
Net book value |
At 31 December 2020 | 79,194,389 |
At 31 December 2019 | 81,977,509 |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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7. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
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Ordinary shares | £0.10 | - | - |
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8. | RESERVES |
Retained |
earnings |
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At 1 January 2020 |
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Profit for the year |
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At 31 December 2020 |
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Profit and loss account |
The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. |
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9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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10. | RELATED PARTY DISCLOSURES |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with the parent company on the basis that it is a wholly owned subsidiary. |
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11. | POST BALANCE SHEET EVENTS |
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After the year ended 31 December 2020, the Company made no capital contributions to the Partnership, and made withdrawals from the Partnership amounting to £6,012,451. |
INGENIOUS REAL ESTATE ENTERPRISES 2 |
LIMITED (REGISTERED NUMBER: 09063144) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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12. | ULTIMATE CONTROLLING PARTY |
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At 31 December 2020, the ultimate parent undertaking was Ingenious Estate Planning Limited, registered at 15 Golden Square, London, W1F 9JG. |
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There was no immediate or ultimate controlling party. |