Momhil Productions Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1010 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, RG41 5TS.
The principal activity of the Company is to conduct a film and television development and production business.
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 £.
The directors have considered the current net liability position of the company. This position arose during the prior year as a result of the uncertainty of the Indian distributor for the film ‘Guru Tegh Bahadur’ being able to fulfil its obligations to the company and therefore, the full write off of the production costs for the film.
The directors have measures in place to ensure that whilst insolvent, the company does not engage in activities that will increase the company's liabilities to the detriment of its creditors.
The company is in a net liability position but has the support of Ingenious Capital Management Limited in not making further administrative support costs other than as cashflow reasonably permits. The entity has support from the parent of Ingenious Media Finance Limited that they will not call upon outstanding amounts until future cash flow permits.
The directors are continuing to explore new distributors for the film and remain confident that future sales can be attained. On this basis, despite the uncertainty the company accounts have been prepared as a going concern.
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.
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.
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.
A financial liability is removed from the balance sheet when the obligation is discharged, or cancelled, or expires.
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:
Included in other creditors is secured debts of £3,178,203 (2023 : £3,587,257)
Ingenious Media Finance Limited holds fixed and floating charges dated 10 March 2017 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.
Riverstone Pictures (Gtb) Limited holds fixed and floating charges dated 23 March 2017 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.
Burmester, Duncker & Joly Gmbh & Co. Kg Trading Under the Name Dfg Deutsche Filmversicherungsgemeinschaft European Film Bonds a/S holds fixed and floating charges dated 4 May 2017 covering all the property or undertaking of the company, the outstanding charge contains a negative pledge.
The share premium reserve records the amount above the nominal value received for shares issued.
The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.
In a prior financial year, the Company produced the film Guru Tegh Bahadur. In October 2019, the Indian distributor for the film defaulted on its contractually due payment to the Company and has still not agreed to an acceptable payment plan or settlement. The directors have commenced legal proceedings to recover the contractually due payment from the Indian distributor. However, this will be a drawn out process as due to the COVID-19 pandemic there are delays in the Indian courts to hear matters.
Subsequent to the year end the above matter continues to be processed and there will be no financial adjustments to the figures presented as at 31 March 2024.