IIFL Wealth (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is c/o Ashley King Ltd, 68 St. Margarets Road, Edgware, Middlesex, HA8 9UU.
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 £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of IIFL Securities Limited, company No L99999MH1996PLC132983. These consolidated financial statements are available from its registered office, IIFL House, Sun Infotech Park, Road No.16V, Plot No. B-23, Thane Industrial Area, Wagle Estate, Thane -400604, Mumbai, India
At the time of approving these financial statements the director has reasonable expectation that the company will continue to receive support from its parent company and group companies.
However, as the company has currently suspended operations pending the outcome of a civil suit against it, the company has adopted an alternative basis of preparing these accounts, with the assets and liabilities stated at their current values.
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 director is 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 company had no paid employees during the period. The director served the company without being remunerated.
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:
Auditor’s report did not express an opinion.
The company was unable to provide sufficient, reliable and relevant information the on the level of liability which it may have in relation to the ongoing civil claim against it.
The Auditors were therefore unable to satisfy themselves whether or not any provisions are required for any liabilities in relation to the civil claim against it.
Emphasis of matter – basis of preparation of financial statements
|
There is currently an ongoing civil suit against the company in High Court of Justice, in England and Wales. The claim was issued several years ago, and whilst certain Judgements on procedural matters have been issued in favour of the claimants in the High Court in March 2023, substantive proceedings have yet to take place.
Whilst the director remains optimistic that the matter will be resolved in the company’s favour, at this stage, both the timetable for the substantive proceedings and the outcome remains difficult to predict with any certainty and how the case develops or the time it will take to conclude. Following the Judgement in March 2023, the company has taken a decision not to be represented in the Court proceedings by legal Counsel, and has left it to the other parties in the proceedings to argue out the matter.
In absence of advice and assessment of the company’s position from suitably qualified UK based legal advisors, the director is not in a position to provide the necessary information required and the likely outcome of the case, and the contingent liabilities for the preparation of these accounts.
The company has no directors or personnel based in the UK, and as a result the we have not been able to provide our auditors with all the information and clarifications they have requested.
The company did not render any services during both the year current or previous year.
Ding the year the company incurred a liability of £nil (2023 - £342,979) to a group undertaking. This liability which was released by the group in previous period end there was no balance due to the company from group undertakings.