IQB Construction Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10113163 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

IQB CONSTRUCTION LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr D M Reid

Mr N A Forster

SECRETARY:

Ms S Cruickshank

REGISTERED OFFICE:

15 Golden Square

London

United Kingdom

W1F 9JG

REGISTERED NUMBER:

10113163 (England and Wales)

ACCOUNTANTS:

FLB Accountants LLP

Chartered Accountants & Registered Auditors

250 Wharfedale Road

Winnersh Triangle

Berkshire

RG41 5TP

FIXED ASSETS

Investments

4

1

1

CURRENT ASSETS

Debtors

5

11,089

25,728,195

Cash at bank

1,817

13,575

12,906

25,741,770

CREDITORS

Amounts falling due within one year

6

(3,432,079

)

(25,753,824

)

NET CURRENT LIABILITIES

(3,419,173

)

(12,054

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(3,419,172

)

(12,053

)

CAPITAL AND RESERVES

Called up share capital

7

1

1

Retained earnings

8

(3,419,173

)

(12,054

)

SHAREHOLDERS' FUNDS

(3,419,172

)

(12,053

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 March 2021 and were signed on its behalf by:

Mr D M Reid - Director

1.	STATUTORY INFORMATION

IQB Construction Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The Company’s principal activity is as a holding company for investments that construct and develop anaerobic digestion plants.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared using the going concern basis of accounting. The Company made a loss for the year of £3,407,119 (2019: profit of £14,062) and has net liabilities of £3,419,172 (2019: £12,053).

The Company has a loan from Ingenious Renewable Energy Lending Services Limited (IRELSL) which has security in the form of debentures and guarantees over the assets held by Saltaugh Grange Renewable Energy Limited, East Helscott Renewable Energy Limited and Penans Renewable Energy Limited, therefore no letter of support was deemed necessary.

As a result of the above and having considered the Company's cash requirements for the year from the date of approval of these accounts, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Company continues to adopt the going concern basis in preparing the financial statements.

Investments

Investments in unlisted company shares, which have been classified as fixed asset investments as the Company intends to hold them on a continuing basis are initially recognised at transaction price and subsequently remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Financial instruments

The Company only 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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at cost. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

(i) Investments

Investments in equity shares are initially recognised at transaction price and subsequently held at fair value through profit and loss. In the Company's Balance Sheet, investments in subsidiary undertakings are held as part of an investment portfolio and are measured at fair value with changes in fair value recognised in profit or loss.

(ii) Recognition and derecognition

Purchases and sales of investments are recognised on the trade date - the date on which the purchase or sale is committed. Investments are derecognised when the rights to receive cash flows from investments have expired or the Company has transferred all risks and rewards of ownership.

(iii) Fair value measurement

The Company considers the investments in the underlying subsidiaries to be held as part of an investment portfolio. In accordance with FRS 102 9.9B they are excluded from consolidation and are measured at fair value with changes in fair value recognised in profit or loss.

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique i.e. income approach using a discounted cash flow method.

Financial assets (investment in subsidiaries) at fair value through profit and loss are initially recognised at cost. Subsequent to initial recognition, investments in subsidiaries are measured at fair value with gains and losses arising from the change in fair value presented in the Income Statement in the period in which they arise.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Financial assets:

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, are measured initially at fair value, net of transaction costs, and are measured subsequently at cost.

Finance costs

Finance costs are charged to the Income Statement over the term of the instrument at a constant rate on the carrying amount.

Interest income

Interest income is recognised in the Income Statement over the term of the instrument at a constant rate on the carrying amount.

Taxation

The tax expense for the year comprises current and deferred tax. 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.

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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

• 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

• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2019 - NIL).

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakin

£

COST

At 1 April 2019

and 31 March 2020

1

NET BOOK VALUE

At 31 March 2020

1

At 31 March 2019

1

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

-

25,702,347

Other debtors

11,089

25,848

11,089

25,728,195

Amounts owed by group undertaking comprises of a shareholder loan provided to its immediate subsidiary. Interest is charged at 8.6% + UK base rate per annum and capitalised quarterly. The loan is unsecured and repayable on demand. In 2020, the shareholder loan has been deemed irrecoverable and fully written off.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank overdrafts

40

77

Trade creditors

-

3,008

Amounts owed to group undertakings

-

25,750,738

Other creditors

3,432,039

1

3,432,079

25,753,824

Ingenious IQB Member Limited, a related party, provided a loan to the Company. Interest is charged at 8.5% + UK base rate per annum and capitalised annually. The loan is secured by a fixed and floating charge over the shares and all assets of the Company and repayable on demand.

IQ Biogas Limited, a related party, provided a loan to the Company. Interest is charged at 8.5% + UK base rate per annum and capitalised quarterly. The loan is unsecured and repayable on demand.

In 2020, the loans payable to Ingenious IQB Member Limited and IQ Biogas Limited have been fully written off due to the irrecoverable shareholder loan receivable described in the note above.

The Company has a loan from Ingenious Renewable Energy Lending Services Limited (IRELSL) which has security in the form of debentures and guarantees over the assets held by Saltaugh Grange Renewable Energy Limited, East Helscott Renewable Energy Limited and Penans Renewable Energy Limited. Interest is charged at 8.25% per annum and capitalised annually.

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1

Ordinary

£1.00

1

1

8.

RESERVES

Retained

earnings

£

At 1 April 2019

(12,054

)

Deficit for the year

(3,407,119

)

At 31 March 2020

(3,419,173

)

Profit and loss account

The profit and loss account represents the cumulative profits or losses, net of dividends paid and other adjustments.

9.	CONTROLLING PARTY

As at year end, IQ Biogas Limited, a company registered in England and Wales, is the immediate controlling parent company. The ultimate parent company is Ingenious Qila Biogas LLP, which is registered in England and Wales.