The directors present their annual report and financial statements for the year ended 31 December 2021.
The principal activity of the company continued to be that of providing administrative and property management services.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor Taylor Viney & Marlow Limited is deemed to be reappointed under section 487(2) of the Companies Act 2006.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
Mhitar Limited is a private company limited by shares incorporated in England and Wales. The registered office is Global House, 1 Ashley Avenue, Epsom, Surrey, KT18 5FL.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the year was:
The amount owed to group undertakings includes loans from Mhitar Investments Sociedada Unipessoal Lda with interest charged at 3% and 4% per annum.
Creditors falling due after more than one year included a loan received from First Quantum International Limited and carries interest at 3% per annum (2020: 3%).
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The following companies are related to Mhitar Limited by virtue of common directors and control by First Quantum International Limited which is a company registered in Liechtenstein:
First Quantum Property Developments Limited, a company incorporated in England and Wales
First Quantum Property Developments III Limited, a company incorporated in England and Wales
First Quantum Broughton Limited, a company incorporated in England and Wales.
Mhitar Investments Sociedade Unipessoal LDA is a company registered in Portugal and 100% owned by Mhitar Limited.
Oil Ventures Corporation Establishment is a company registered in Liechtenstein and 100% owned by First Quantum International Limited.
Fixed asset loans include the following loans receivable from related companies:
Mhitar Investments Sociedade Unipessoal LDA €850,000 (2020 €850,000) converted to £713,482 (2020 £768,849)
Mhitar Investments Sociedade Unipessoal LDA €2,593,897 (2020 €2,593,897) converted to £2,290,729 (2020 £2,290,729).
Interest receivable for the year on the above loans is as follows:
Mhitar Investments Sociedade Unipessoal LDA €850,000 carries interest at 4% and the interest receivable for the year is £30,211 (2020 £30,211)
Mhitar Investments Sociedade Unipessoal LDA of €2,593,897 carries interest at 3% and the interest receivable for the year is £68,722 (2020 £68,722).
Creditors due within one year include the following related party loan balances payable to:
First Quantum Property Developments Limited £425,000 (2020 £15,250)
First Quantum Property Developments III Limited £1,795,545 (2020 £1,445,545)
First Quantum Broughton Limited £421,000 (2020 £10,000)
Oil Ventures Corporation Establishment £1,660,682 (2020 £1,660,682).
Creditors due in more than one year include £1,100,002 (2020 £1,100,002) payable to First Quantum International Limited.
Interest payable and similar charges to include the following interest payable:
£66,427 (2020 £66,427) payable to Oil Ventures Corporation Establishment, being interest charged at 4% per year.
£33,000 (2020 £33,000) payable to First Quantum International Limited, being interest charged at 3% per year.
Turnover includes the following management fees charged in the year for services provided:
£0 (2020 £75,000) charged to First Quantum Property Developments III Limited.
£0 (2020 £45,000) charged to First Quantum Broughton Limited.
Erik Mkhitaryan is the shareholder of Mhitar Limited and at 31 December 2021 was owed £160,982 (2020 £161,267). The loan was interest free and payable on demand.
Administrative expenses include £4,075 (31 December 2020 £11,581) for consultancy services charged by the director Frank Horatio Tett.