IRIS Accounts Production v22.1.4.3 00656996 Board of Directors 1.1.21 31.12.21 31.12.21 The principal activity of the company in the year under review was that of a collector and processor of mammalian industry by-products to produce meal and tallow. These products are used for animal feed, in the oleo chemical industry and is blended with other ingredients to use as an alternative to fuel in power generation. true false true true false false true false Defined benefit pension plans Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure006569962020-12-31006569962021-12-31006569962021-01-012021-12-31006569962019-12-31006569962020-01-012020-12-31006569962020-12-3100656996ns16:EnglandWales2021-01-012021-12-3100656996ns15:PoundSterling2021-01-012021-12-3100656996ns11:Director12021-01-012021-12-3100656996ns11:CompanySecretary12021-01-012021-12-3100656996ns11:PrivateLimitedCompanyLtd2021-01-012021-12-3100656996ns11:FRS1022021-01-012021-12-3100656996ns11:Audited2021-01-012021-12-3100656996ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2021-01-012021-12-3100656996ns11:LargeMedium-sizedCompaniesRegimeForAccounts2021-01-012021-12-3100656996ns11:FullAccounts2021-01-012021-12-3100656996ns6:TotalForAllPensionPlansExcludingMedicalOtherPlans2021-01-012021-12-3100656996ns11:OrdinaryShareClass12021-01-012021-12-3100656996ns11:Director22021-01-012021-12-3100656996ns11:Director32021-01-012021-12-3100656996ns11:RegisteredOffice2021-01-012021-12-3100656996ns6:CurrentFinancialInstruments2021-12-3100656996ns6:CurrentFinancialInstruments2020-12-3100656996ns6:ShareCapital2021-12-3100656996ns6:ShareCapital2020-12-3100656996ns6:RetainedEarningsAccumulatedLosses2021-12-3100656996ns6:RetainedEarningsAccumulatedLosses2020-12-3100656996ns6:ShareCapital2019-12-3100656996ns6:RetainedEarningsAccumulatedLosses2019-12-3100656996ns6:RetainedEarningsAccumulatedLosses2020-01-012020-12-3100656996ns6:RetainedEarningsAccumulatedLosses2021-01-012021-12-3100656996ns16:UnitedKingdom2021-01-012021-12-3100656996ns16:UnitedKingdom2020-01-012020-12-3100656996ns16:Asia2021-01-012021-12-3100656996ns16:Asia2020-01-012020-12-3100656996ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-01-012021-12-3100656996ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2020-01-012020-12-3100656996ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2021-01-012021-12-3100656996ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2020-01-012020-12-3100656996ns6:OwnedAssets2021-01-012021-12-3100656996ns6:OwnedAssets2020-01-012020-12-3100656996112021-01-012021-12-3100656996112020-01-012020-12-310065699642021-01-012021-12-310065699642020-01-012020-12-310065699652021-01-012021-12-310065699652020-01-012020-12-3100656996ns6:PlantMachinery2020-12-3100656996ns6:FurnitureFittings2020-12-3100656996ns6:MotorVehicles2020-12-3100656996ns6:ComputerEquipment2020-12-3100656996ns6:PlantMachinery2021-01-012021-12-3100656996ns6:FurnitureFittings2021-01-012021-12-3100656996ns6:MotorVehicles2021-01-012021-12-3100656996ns6:ComputerEquipment2021-01-012021-12-3100656996ns6:PlantMachinery2021-12-3100656996ns6:FurnitureFittings2021-12-3100656996ns6:MotorVehicles2021-12-3100656996ns6:ComputerEquipment2021-12-3100656996ns6:PlantMachinery2020-12-3100656996ns6:FurnitureFittings2020-12-3100656996ns6:MotorVehicles2020-12-3100656996ns6:ComputerEquipment2020-12-3100656996ns6:WithinOneYearns6:CurrentFinancialInstruments2021-12-3100656996ns6:WithinOneYearns6:CurrentFinancialInstruments2020-12-3100656996ns6:WithinOneYear2021-12-3100656996ns6:WithinOneYear2020-12-3100656996ns6:BetweenOneFiveYears2021-12-3100656996ns6:BetweenOneFiveYears2020-12-3100656996ns6:AllPeriods2021-12-3100656996ns6:AllPeriods2020-12-3100656996ns6:DeferredTaxation2020-12-3100656996ns6:DeferredTaxation2021-01-012021-12-3100656996ns6:DeferredTaxation2021-12-3100656996ns11:OrdinaryShareClass12021-12-3100656996ns6:RetainedEarningsAccumulatedLosses2020-12-31
REGISTERED NUMBER: 00656996 (England and Wales)















SARVAL (Hartshill) Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2021






SARVAL (Hartshill) Limited (Registered number: 00656996)






Contents of the Financial Statements
for the Year Ended 31 December 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


SARVAL (Hartshill) Limited

Company Information
for the Year Ended 31 December 2021







DIRECTORS: J G Braide
A R Smith
R V Ratcliffe


SECRETARY: J G Braide


REGISTERED OFFICE: Ings Road
Doncaster
South Yorkshire
DN5 9TL


REGISTERED NUMBER: 00656996 (England and Wales)


SENIOR STATUTORY AUDITOR: Ian Parsons FCA


AUDITORS: Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ


BANKERS: HSBC plc
City Office
33 Park Row
Leeds
West Yorkshire
LS1 1LD


SOLICITORS: Ramsdens Solicitors
7 King Street
Mirfield
West Yorkshire
WF14 8AW

SARVAL (Hartshill) Limited (Registered number: 00656996)

Strategic Report
for the Year Ended 31 December 2021

Business Overview

SARVAL (Hartshill) Limited (SARVAL) is a wholly owned subsidiary of SARIA Limited (SARIA); SARIA operates in a wide range of sectors associated with the food chain, renewable energy, and recycling.

SARVAL operates the Group's main Category 3 mammalian rendering plant, converting raw animal by-products (ABP) collected from abattoirs, cutting plants, other meat plants and retail butchers' shops into tallow and processed animal proteins (PAP). Tallow is sold into downstream markets such as biodiesel production, organic chemical manufacturing whilst the PAP is sold to pet food manufacturers in the UK and International markets for incorporation into dried pet food products.

Key Performance Indicators (KPIs)

As shown in the company's income statement on page 8, the company has made a loss of £1,399,446 from a loss of £1,868,543 in the previous year. At the year end the shareholder's funds were (£15,709,366), 2020 - (£14,309,920).

During the period, the UK market experienced significant challenges caused by a combination of new market entrants and the unforeseen impacts of the global Coronavirus pandemic. Following the re-introduction of national lockdown measures first introduced by the government in March 2020, the company experienced significant adverse impacts which required the introduction of appropriate contingency measures.

The company responded to the initial challenges by implementing a multi-layered response, ensuring the health and safety of our staff and their families were addressed in the first instance whilst also ensuring the business operations remained "COVID-safe" in line with the advice issued by UK Government.

Lockdown measures associated with the Government controls impacted on the demand for primary meat production and consequently the volumes of by-products generated were also affected.

The company accessed funding from the Government's Job Retention Scheme to support the costs of staff furloughed due to a reduction in business operations.

SARIA manages its operations on a divisional basis. For this reason, the company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance, or position of the business.

Following the United Kingdom's withdrawal from the European Union, a UK Emissions Trading Scheme (UK ETS) replaced the UK's participation in the EU Emissions Trading Scheme on 1 January 2021.

Like many emissions trading schemes, the UK ETS works on the 'cap and trade' principle, where a cap is set on the total amount of certain greenhouse gases that can be emitted by sectors covered by the scheme. This limits the total amount of carbon that can be emitted and, as it decreases over time, will make a significant contribution to how the UK meets its Net Zero 2050 target and other legally binding carbon reduction commitments.

Within this cap, participants receive free allowances and/or buy emission allowances at auction or on the secondary market which they can trade with other participants as needed.

SARVAL's plants are covered by the UK ETS, during the period the market value for emissions allowances over the cap increased significantly ahead of the values budgeted for, the total income statement cost in the period for this company being £424,921.

Risk

With businesses active across a wide variety of sectors and operating large-scale processing businesses always entails risk. Beside market developments, we are also affected by global events such as commodity market price changes driven by weather patterns; such events entail risks but also present us with new opportunities.


SARVAL (Hartshill) Limited (Registered number: 00656996)

Strategic Report
for the Year Ended 31 December 2021

The Group is faced with challenges when conducting analyses and making decisions. If we do not incorporate market developments or if we evaluate them incorrectly, they may pose serious business risks. The risks affecting SARVAL are largely dealt with on a group basis, apart from the ones highlighted below:

Business Unit / Area Risk Mitigation Factor

Pet food Ingredient manufacturing Reduction in the availability of
mammalian-based proteins.
Expand processing of poultry-based
proteins.

Legislative changes to animal
by-product categorisation
Reduced demand for 'wet' protein
ingredients for pet food.
Operate processing plants for dried pet food
ingredient.
High risk moves to low risk. Operate category 3 rendering plants to
benefit from switch from Category 1 (high
risk).
Low risk moves to edible co-product. Operate edible co-product
production/trading businesses to benefit
from switch from animal by-product to food
status.

Health & Safety Health & safety incidents could result in
harm to the company's employees,
contractors or local communities.
Ensuring safety and wellbeing is an
ethical obligation for the company. Poor
safety records or serious accidents could
have a serious impact on the company's
production and reputation.
The company focuses on identifying,
mitigating and managing the safety risks
inherent across its operations. The
company's objective is to create a safety
culture through regular training and
awareness campaigns for employees and
contractors. The company operates a 'best
practice' system of in-house training to
develop an embedded health & safety
culture.
Employees

Details of the number of employees can be found in note 4 to the financial statements on page 16.

The company participates in the group's policies and practices about Health and Safety at work, pension, and health care schemes.

Future developments

The directors anticipate that they will continue to develop the company's established activities and will closely monitor the effect of 'Brexit' on the business following the United Kingdom's withdrawal from the European Union.

ON BEHALF OF THE BOARD:





J G Braide - Secretary


29 April 2022

SARVAL (Hartshill) Limited (Registered number: 00656996)

Report of the Directors
for the Year Ended 31 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

J G Braide
A R Smith
R V Ratcliffe

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Paylings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



J G Braide - Secretary


29 April 2022

Report of the Independent Auditors to the Members of
SARVAL (Hartshill) Limited

Opinion
We have audited the financial statements of SARVAL (Hartshill) Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
SARVAL (Hartshill) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- reviewed the nature of the industry and sector, the control environment and business performance for the year.
- identifying the laws and regulations the company operates within and enquiring with management if they are aware of any
non compliance issues.
- discussed how and where fraud may occur with all members of the audit engagement team.
- in line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override.
We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any
bias, and assessed the rationale behind any significant or unusual transactions.
- reviewed directors' minutes to assess if any indications of fraud or non compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
SARVAL (Hartshill) Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Ian Parsons FCA (Senior Statutory Auditor)
for and on behalf of Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ

29 April 2022

SARVAL (Hartshill) Limited (Registered number: 00656996)

Income Statement
for the Year Ended 31 December 2021

2021 2020
Notes £    £    £    £   

TURNOVER 3 22,815,256 22,541,165

Changes in stocks of finished goods and work in
progress

(74,691

)

(74,691

)
22,740,565 22,466,474

Own work capitalised - 6,481
22,740,565 22,472,955

Other operating income 44,286 208,763
22,784,851 22,681,718

Raw materials and consumables 9,418,295 8,525,439
Other external expenses 572,299 154,361
9,990,594 8,679,800
12,794,257 14,001,918

Staff costs 4 3,649,912 4,419,723
Depreciation 3,167,850 3,336,268
Other operating expenses 8,110,088 8,388,080
14,927,850 16,144,071
OPERATING LOSS 5 (2,133,593 ) (2,142,153 )


Interest payable and similar expenses 7 268,495 327,738
LOSS BEFORE TAXATION (2,402,088 ) (2,469,891 )

Tax on loss 8 (1,002,642 ) (601,348 )
LOSS FOR THE FINANCIAL YEAR (1,399,446 ) (1,868,543 )

SARVAL (Hartshill) Limited (Registered number: 00656996)

Other Comprehensive Income
for the Year Ended 31 December 2021

2021 2020
Notes £    £   

LOSS FOR THE YEAR (1,399,446 ) (1,868,543 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(1,399,446

)

(1,868,543

)

SARVAL (Hartshill) Limited (Registered number: 00656996)

Balance Sheet
31 December 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 8,724,429 10,463,616

CURRENT ASSETS
Stocks 10 1,465,160 1,036,538
Debtors 11 5,102,644 2,033,608
Cash at bank and in hand 280,939 2,867
6,848,743 3,073,013
CREDITORS
Amounts falling due within one year 12 31,282,538 27,846,549
NET CURRENT LIABILITIES (24,433,795 ) (24,773,536 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(15,709,366

)

(14,309,920

)

CAPITAL AND RESERVES
Called up share capital 15 10,500 10,500
Retained earnings 16 (15,719,866 ) (14,320,420 )
SHAREHOLDERS' FUNDS (15,709,366 ) (14,309,920 )

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2022 and were signed on its behalf by:





A R Smith - Director


SARVAL (Hartshill) Limited (Registered number: 00656996)

Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 10,500 (12,451,877 ) (12,441,377 )

Changes in equity
Total comprehensive income - (1,868,543 ) (1,868,543 )
Balance at 31 December 2020 10,500 (14,320,420 ) (14,309,920 )

Changes in equity
Total comprehensive income - (1,399,446 ) (1,399,446 )
Balance at 31 December 2021 10,500 (15,719,866 ) (15,709,366 )

SARVAL (Hartshill) Limited (Registered number: 00656996)

Cash Flow Statement
for the Year Ended 31 December 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,332,546 592,932
Interest paid (268,495 ) (327,738 )
Tax paid 642,684 274,438
Net cash from operating activities 1,706,735 539,632

Cash flows from investing activities
Purchase of tangible fixed assets (1,524,657 ) (540,716 )
Sale of tangible fixed assets 95,994 -
Net cash from investing activities (1,428,663 ) (540,716 )

Increase/(decrease) in cash and cash equivalents 278,072 (1,084 )
Cash and cash equivalents at beginning of year 2 2,867 3,951

Cash and cash equivalents at end of year 2 280,939 2,867

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2021

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2021 2020
£    £   
Loss before taxation (2,402,088 ) (2,469,891 )
Depreciation charges 3,167,850 3,335,011
Loss on disposal of fixed assets - 1,257
Finance costs 268,495 327,738
1,034,257 1,194,115
(Increase)/decrease in stocks (428,622 ) 143,325
(Increase)/decrease in trade and other debtors (2,709,078 ) 417,985
Increase/(decrease) in trade and other creditors 3,435,989 (1,162,493 )
Cash generated from operations 1,332,546 592,932

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 280,939 2,867
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 2,867 3,951


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank and in hand 2,867 278,072 280,939
2,867 278,072 280,939
Total 2,867 278,072 280,939

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements
for the Year Ended 31 December 2021

1. STATUTORY INFORMATION

SARVAL (Hartshill) 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.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The company returned to significant profits in 2016 and 2017, however due to unforeseen market conditions that profitability has not continued in 2018 and 2019. The company continues to have a large deficiency of assets at the balance sheet date, however it remains an integral part of the group operations and whilst not profitable, performance has improved in 2020.

The company is dependent upon the financial support of its parent undertaking. The directors are confident that this support will continue for the foreseeable future.

On this basis the directors consider it appropriate to prepare the financial statements on the going concern basis and the financial statements therefore, do not include any adjustments that would result from the company ceasing to trade.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income arises from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life.

Plant & machinery - 50% on cost, 25% on cost and 10% on cost
Fixtures & fittings - 33.3% on cost, 25% on cost and 10% on cost
Motor vehicles - 16.67% - 25% on reducing balance, 20% on cost and 10% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company contributes to the SARIA Limited Group Pension Schemes, funded defined benefit schemes.

Since the above schemes were closed to new members the group has opened a defined contribution scheme to provide retirement benefits to employees.

The pension charge represents contributions payable to the funds in respect of the accounting period.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021 2020
£    £   
United Kingdom 18,326,883 22,541,165
Asia 4,488,373 -
22,815,256 22,541,165

4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 3,111,458 3,748,797
Social security costs 295,863 345,422
Other pension costs 242,591 325,504
3,649,912 4,419,723

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2021 2020

Office & management 10 13
Collection & processing 51 57
61 70

2021 2020
£    £   
Directors' remuneration - -

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2021 2020
£    £   
Hire of plant and machinery 126,247 204,006
Depreciation - owned assets 3,167,584 3,335,011
Loss on disposal of fixed assets - 1,257
Auditors' remuneration 12,060 9,275
Foreign exchange differences 21,822 (401 )
Operating leases 16,964 20,263

6. EXCEPTIONAL ITEMS
2021 2020
£    £   
Exceptional items (115,194 ) -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Intercompany interest 266,858 327,738
Other interest 1,637 -
268,495 327,738

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

8. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2021 2020
£    £   
Current tax:
Under/over provision (642,684 ) (274,438 )

Deferred tax:
Deferred tax (359,958 ) (467,320 )
Under/(over)provision - 140,410
Total deferred tax (359,958 ) (326,910 )
Tax on loss (1,002,642 ) (601,348 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Loss before tax (2,402,088 ) (2,469,891 )
Loss multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%) (456,397 ) (469,279 )

Effects of:
Expenses not deductible for tax purposes 2,124 1,960
Adjustments to tax charge in respect of previous periods 95 183
Change in rate from a previous period (494,917 ) (134,212 )
Superdeduction (53,547 ) -
Total tax credit (1,002,642 ) (601,348 )

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

9. TANGIBLE FIXED ASSETS
Fixtures Assets
Plant & and Motor under
machinery fittings vehicles construction Totals
£    £    £    £    £   
COST
At 1 January 2021 44,044,340 1,814,018 1,618,926 369,847 47,847,131
Additions 1,014,738 40,385 224,453 139,681 1,419,257
Disposals - (746 ) - - (746 )
Reclassification/transfer 58,500 9,706 127,515 (95,994 ) 99,727
At 31 December 2021 45,117,578 1,863,363 1,970,894 413,534 49,365,369
DEPRECIATION
At 1 January 2021 34,721,000 1,538,879 1,123,636 - 37,383,515
Charge for year 3,043,920 60,655 63,009 - 3,167,584
Eliminated on disposal - (746 ) - - (746 )
Reclassification/transfer 7,222 5,754 77,611 - 90,587
At 31 December 2021 37,772,142 1,604,542 1,264,256 - 40,640,940
NET BOOK VALUE
At 31 December 2021 7,345,436 258,821 706,638 413,534 8,724,429
At 31 December 2020 9,323,340 275,139 495,290 369,847 10,463,616

Transfers of assets between group companies have been done using gross cost and gross depreciation, rather than using net book value as the cost to the acquirer. This has been done in order to preserve historical information in relation to the properties of the group, in particular previous revaluations. This is considered to be the most appropriate method both from an accounting and tax perspective.

10. STOCKS
2021 2020
£    £   
Stocks 121,893 73,819
Raw materials 19,110 7,425
Finished goods 1,257,846 642,213
Plant spares in inventory 66,311 313,081
1,465,160 1,036,538

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 1,768,096 153,388
Amounts owed by group undertakings 1,382,992 271,085
Other debtors (1,384 ) 1,025
Retention account 35,579 -
VAT - 98,372
Deferred tax asset 1,827,669 1,467,711
Prepayments 89,692 42,027
5,102,644 2,033,608

Deferred tax asset
2021 2020
£    £   
Accelerated capital allowances 718,915 523,434
Other timing differences 558 424
Tax losses 1,108,196 943,853
1,827,669 1,467,711

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade creditors 1,936,169 948,630
Amounts owed to group undertakings 27,428,329 26,062,770
VAT 162,758 -
Other creditors 590,424 102,254
Accrued expenses 1,164,858 732,895
31,282,538 27,846,549

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2021 2020
£    £   
Within one year 4,323 16,964
Between one and five years - 4,323
4,323 21,287

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

14. DEFERRED TAX
£   
Balance at 1 January 2021 (1,467,711 )
Provided during year 134,959
Change of Rate (494,917 )
Balance at 31 December 2021 (1,827,669 )

Deferred Tax has been provided for at 19% on balances expected to unwind in the next 12 months and at 25% on balances expected to unwind thereafter. The current rate of corporation tax is 19%, however it is legislated to increase to 25% from 1st April 2023.

15. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
10,500 Ordinary 1 10,500 10,500

16. RESERVES
Retained
earnings
£   

At 1 January 2021 (14,320,420 )
Deficit for the year (1,399,446 )
At 31 December 2021 (15,719,866 )

17. EMPLOYEE BENEFIT OBLIGATIONS

The company pays contributions to two defined benefit arrangements operated by the SARIA Limited group. The payments are made to independent trusts.

The company is unable to identify its share of the underlying assets and liabilities of the schemes and therefore company pension contributions to the schemes are accounted for as if they were of a defined contribution type.

The schemes are valued triennially by a qualified independent actuary. The most recent actuarial valuation was to 5 April 2019.

At the balance sheet date the FRS 102 value of the liabilities was £118,227,000 (2020 - £124,821,000) and the market value of the assets was £151,594,000 (2020 - £156,020,000) giving a net asset of £33,367,000 (2020 - £31,199,000 ).

The above schemes have been closed to new members. The group has made alternate provision, in the form of a defined contribution scheme, for new employees or those not eligible to join the other schemes. This scheme is also administered on a group basis independently of any group company or director.

Total contributions payable by the company to the schemes during the year amounted to £242,591 (2020 - £325,504 ). There were no accrued or prepaid pension contributions at the balance sheet date (2020 - £nil).

SARVAL (Hartshill) Limited (Registered number: 00656996)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

18. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of SARIA Limited which is registered in England and Wales.

SARIA Limited is a subsidiary of SARIA International GmbH which is owned by Rethmann SE & Co. KG These two companies are incorporated in Germany.

19. RELATED PARTY DISCLOSURES

Rethmann Group

Fellow members of the Rethmann group.


Purchases of goods and services of £2,128 (2020: £5,453). Amounts due from fellow members of the Rethmann group in 2021 relate to surrender of tax losses and not intercompany trading.

2021 2020
£    £   
Amount due from/(to) related party at the balance sheet date 273,745 (426 )

APC (GB) Limited

Company in which Saria Limited holds an interest.


Purchases of goods and service £nil (2020: £1,700).

20. ULTIMATE CONTROLLING PARTY

The controlling party is SARIA Limited.

The ultimate controlling party is the Rethmann family.

The ultimate controlling entity owned by the Rethmann family is Rethmann SE & Co. KG.