Swann Communications (Europe) Limited

The principal activity of the company is the import and distribution of the Swann range of DIY home security, CCTV and smart home products in Europe and that is expected to continue. FINANCIAL RISKS The main financial risks arising from the company's activities are credit risk and liquidity risk. these are monitored by the board of directors and were not considered to be significant at the balance sheet date. The company's policy in respect of credit risk is to require appropriate credit checks on potential customers and to carry debt insurance where appropriate. The company also regularly reviews the credit position and payment pattern of existing customers. The company's policy in respect of liquidity risk is to maintain readily accessible bank deposit funds to ensure the company has sufficient funds for operations and to ensure sufficiently accurate and timely forecasts for sales and cashflow. GOING CONCERN The directors have prepared a budget forecast covering a period extending beyond 12 months from the date of approval of these financial statements. The forecast contains assumptions about the performance of the business which include the director's best estimates of future developments of the business, including consideration of working capital assumptions and cash reserves. Whilst the company is forecast to be cash neutral, additional reliance is placed upon the support of the ultimate company. Shenzhen Infinova Limited has committed in writing to the directors that it will provide financial support as required and it will not recall monies in relation to amounts owed to them if payments would impact the liquidity of the company. Based on the above, the directors are satisfied that Swann Communications (Europe) Limited is able to meet its liabilities as they fall due and consequently, these financial statements have been prepared on a going concern basis.