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REGISTERED NUMBER: 09800657 (England and Wales)















PENN GLOBE LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

1 SEPTEMBER 2022 TO 31 MARCH 2023






PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17


PENN GLOBE LIMITED

COMPANY INFORMATION
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023







DIRECTORS: M J Humphries
A C Muthiah
M Ravi
C M Bowry
D A Muthiah





REGISTERED OFFICE: Unit 6, Aston Way
Midpoint 18 Business Park
Middlewich
Cheshire
CW10 0HS





REGISTERED NUMBER: 09800657 (England and Wales)





AUDITORS: Clarke Nicklin LLP
Chartered Accountants and
Statutory Auditors
Clarke Nicklin House
Brooks Drive
Cheadle Royal Business Park
Cheadle
Cheshire
SK8 3TD

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

GROUP STRATEGIC REPORT
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


The directors present their strategic report of the company and the group for the period 1 September 2022 to 31 March 2023.

REVIEW OF BUSINESS
During the period the Penn Globe Limited group, was acquired by the Indian group Manali Petrochemicals Limited. The directors are excited by the opportunities this presents for the group to expand product offerings and distribution channels. Key staff remain in place and the supply of all finished goods will also continue being produced from our Middlewich site, an increased emphasis will also be put into R&D to enable the business to continue to grow into new market segments.

Despite global economic uncertainties with increasing inflation, currency fluctuation, the ongoing Ukrainian invasion, along with the after effects of the Coronavirus pandemic, the broad customer base and industry sectors have ensured that Turnover has remained strong and that the Gross Profit margin has increased to 36.0% (2022: £34.4%) in the period.

The Board is confident that despite the prevailing economic factors, strong demand and turnover levels will continue and that future growth can be achieved with continued improvements in market share and in the range of products being developed and supplied.

To maintain its product range and competitiveness significant investment continues to be made in research and development each year and this continues to remain a priority for the company and its future plans.

The Board of directors are pleased with the performance in the year.


PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

GROUP STRATEGIC REPORT
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The group operates in a global economy, where the effect and uncertainty surrounding a post pandemic world along with the fluctuation of world currencies continue to lead to some potential risks and uncertainties for the future, though these are no different to any other industry operating in the global economy.

Raw material supply can be challenging, and the group regularly reviews stock levels. Risks associated with raw material supplies are mitigated by continuing to develop alternative products for current raw material usage and ensuring that the group has multiple suppliers for key raw materials.

Foreign currency exchange is regularly reviewed and monitored. The risk in currency fluctuation is managed monthly and the fact that the group sells and purchases goods in foreign currencies enables us to take advantage of the weak pound for exports with a converse off-set impact on purchases of foreign goods.

Due to the nature of the group's activities and the broad make up of customers the loss of a significant customer is not a major key risk to the group. However, it is the policy of the directors to maintain good relationships with, and provide high levels of service to, their customers to help reduce any possible exposure.

The aftermath of Coronavirus pandemic and ongoing Ukraine war has had limited impact on the financial performance of the business as most customers, operating in key industries globally, have traded throughout the period. Demand for the group's products remains very strong with record order books in place going forward into the next financial year.

Whilst under new corporate ownership, the group retains its core foundations which continues to allow the group to react quickly to any such risks and uncertainties and with the added comfort that it can use the strength of its liquidity and resources to counter any such risks.

Operating in a fast changing world market is managed by operating in several key industry sectors worldwide such as food, water, waste and recycling. These sectors will always have a demand for the group's products and across a wide geographic area. The group remains flexible to such needs and requirements to enable it to respond quickly where possible.

ON BEHALF OF THE BOARD:





M J Humphries - Director


10 May 2023

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


The directors present their report with the financial statements of the company and the group for the period 1 September 2022 to 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the period under review was that of the trading of silicone based products and chemicals.

DIVIDENDS
The total distribution of dividends for the period ended 31 March 2023 will be £75,000 (2022: £nil).

DIRECTORS
M J Humphries has held office during the whole of the period from 1 September 2022 to the date of this report.

Other changes in directors holding office are as follows:

A H Hooley - resigned 30 November 2022
S J Whitehead - resigned 30 November 2022
J J Whitehead - resigned 30 November 2022
H M Whitehead - resigned 30 November 2022
R J Richardson - resigned 30 November 2022
J J Whitehead - resigned 30 November 2022
A C Muthiah - appointed 30 November 2022
M Ravi - appointed 30 November 2022
C M Bowry - appointed 18 January 2023
D A Muthiah - appointed 18 January 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


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

ON BEHALF OF THE BOARD:





M J Humphries - Director


10 May 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PENN GLOBE LIMITED


Opinion
We have audited the financial statements of Penn Globe Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the period 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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
PENN GLOBE LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PENN GLOBE LIMITED


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:

Procedures to identify risks:
- enquiring of management concerning the group's procedures relating to: identifying, evaluating and complying with
laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding
to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- discussing among the engagement team regarding how and where fraud might occur in the financial statements
and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following
areas: timing of recognition of sales and purchases and their related stock movements, posting of unusual
journals; and
- obtaining an understanding of the legal and regulatory frameworks that the group operates in, focusing on those
laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the
operations of the group. The key laws and regulations we considered in this context included UK Companies Act,
employment law, health and safety, pensions legislation and tax legislation.

The procedures to respond to risks identified included:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
relevant laws and regulations discussed above;
- enquiring of management, concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
- reviewing correspondence with HMRC;
- testing the timing and matching of income and expense transactions relating to stock movements either side of the
year end; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the judgements made in making accounting estimates are
indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual
or outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulation that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detection one resulting from an error, as fraud may involve deliberate concealment, by for example, forgery or intentional misrepresentation, or through collusion.

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
PENN GLOBE 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.




Graham Travis FCA (Senior Statutory Auditor)
for and on behalf of Clarke Nicklin LLP
Chartered Accountants and
Statutory Auditors
Clarke Nicklin House
Brooks Drive
Cheadle Royal Business Park
Cheadle
Cheshire
SK8 3TD

10 May 2023

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

Period Year ended
1.9.22 to 31.3.23 31.8.22
Notes £    £    £    £   

TURNOVER 3 8,611,311 15,855,851

Cost of sales 5,508,643 10,401,853
GROSS PROFIT 3,102,668 5,453,998

Distribution costs 296,773 639,617
Administrative expenses 1,574,302 1,850,184
1,871,075 2,489,801
1,231,593 2,964,197

Other operating income 200 76
OPERATING PROFIT 5 1,231,793 2,964,273

Interest receivable and similar income 97 53,503
1,231,890 3,017,776

Interest payable and similar expenses 6 27,763 24,833
PROFIT BEFORE TAXATION 1,204,127 2,992,943

Tax on profit 7 271,096 535,895
PROFIT FOR THE FINANCIAL PERIOD 933,031 2,457,048
Profit attributable to:
Owners of the parent 933,031 2,457,048

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

Period
1.9.22
to Year ended
31.3.23 31.8.22
Notes £    £   

PROFIT FOR THE PERIOD 933,031 2,457,048


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

933,031

2,457,048

Total comprehensive income attributable to:
Owners of the parent 933,031 2,457,048

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONSOLIDATED BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 349,524 425,308
Tangible assets 11 97,238 115,055
Investments 12 - -
446,762 540,363

CURRENT ASSETS
Stocks 13 1,584,100 2,291,716
Debtors 14 6,275,215 6,746,020
Cash at bank 425,084 90,105
8,284,399 9,127,841
CREDITORS
Amounts falling due within one year 15 1,625,805 3,420,879
NET CURRENT ASSETS 6,658,594 5,706,962
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,105,356

6,247,325

CAPITAL AND RESERVES
Called up share capital 19 1,126 1,126
Retained earnings 20 7,104,230 6,246,199
SHAREHOLDERS' FUNDS 7,105,356 6,247,325

The financial statements were approved by the Board of Directors and authorised for issue on 10 May 2023 and were signed on its behalf by:





M J Humphries - Director


PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

COMPANY BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 2,522,516 2,522,516
2,522,516 2,522,516

CURRENT ASSETS
Debtors 14 2,925,987 -
Cash at bank 1,096 5,571
2,927,083 5,571
CREDITORS
Amounts falling due within one year 15 2,469,643 27,390
NET CURRENT ASSETS/(LIABILITIES) 457,440 (21,819 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,979,956

2,500,697

CAPITAL AND RESERVES
Called up share capital 19 1,126 1,126
Retained earnings 20 2,978,830 2,499,571
SHAREHOLDERS' FUNDS 2,979,956 2,500,697

Company's profit/(loss) for the financial year 554,259 (8,917 )

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

The financial statements were approved by the Board of Directors and authorised for issue on 10 May 2023 and were signed on its behalf by:





M J Humphries - Director


PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 September 2021 1,050 3,789,151 3,790,201

Changes in equity
Issue of share capital 76 - 76
Total comprehensive income - 2,457,048 2,457,048
Balance at 31 August 2022 1,126 6,246,199 6,247,325

Changes in equity
Dividends - (75,000 ) (75,000 )
Total comprehensive income - 933,031 933,031
Balance at 31 March 2023 1,126 7,104,230 7,105,356

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 September 2021 1,050 2,508,488 2,509,538

Changes in equity
Issue of share capital 76 - 76
Total comprehensive income - (8,917 ) (8,917 )
Balance at 31 August 2022 1,126 2,499,571 2,500,697

Changes in equity
Dividends - (75,000 ) (75,000 )
Total comprehensive income - 554,259 554,259
Balance at 31 March 2023 1,126 2,978,830 2,979,956

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023

Period
1.9.22
to Year ended
31.3.23 31.8.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 24 (2,122,128 ) 1,720,837
Interest paid (27,763 ) (20,123 )
Interest element of hire purchase or finance
lease rental payments paid

-

(4,710

)
Tax paid (455,530 ) (448,690 )
Net cash from operating activities (2,605,421 ) 1,247,314

Cash flows from investing activities
Purchase of intangible fixed assets (3,321 ) -
Purchase of tangible fixed assets (8,689 ) (34,437 )
Sale of tangible fixed assets - 77,250
Purchase of subsidiary - (17,989 )
Interest received 97 53,503
Net cash from investing activities (11,913 ) 78,327

Cash flows from financing activities
Capital repayments in year - (64,027 )
Amount introduced by directors 3,027,313 8,744
Amount withdrawn by directors - (1,734,902 )
Equity dividends paid (75,000 ) -
Net cash from financing activities 2,952,313 (1,790,185 )

Increase/(decrease) in cash and cash equivalents 334,979 (464,544 )
Cash and cash equivalents at beginning of
period

25

90,105

554,649

Cash and cash equivalents at end of
period

25

425,084

90,105

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


1. STATUTORY INFORMATION

Penn Globe Limited ("the Company") is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (£).

Going concern
The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the group and any potential risk that might impact the group's ability to meet its required solvency levels. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation
The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold during the period are included in the consolidated income statement from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation.

On acquisition of a subsidiary, the subsidiary's assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains and losses that arise after the group has gained control of the subsidiary are charged to the post acquisition income statement.

Significant judgements and 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 if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgements have had the most significant effect on amounts recognised in the financial statements;
Depreciation - The useful life of fixed assets can vary significantly. Estimates are based on historic experience and current expectations of useful life. The size of prior year gains and losses on disposal are also factored in to estimates.
Bad debts - The directors regularly review debts and provide for those which are doubtful.

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

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

Negative goodwill
Negative goodwill relates to the amount paid in connection with the acquisition of a business in 2022. The element relating to the monetary assets was written off in the year of acquisition. Negative goodwill on the remaining non monetary assets are being amortised over periods in which the assets are recovered.

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Computer software
Computer software relates to development expenditure on an IT and accounting system. It is recognised as an intangible asset when the company can demonstrate:
- The technical feasibility of completing the intangible asset so that it will be available for use or sale
- Its intention to complete and its ability to use or sell the asset
- How the asset will generate future economic benefits
- The availability of resources to complete the asset
- The ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over its useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - Straight line between 6 and 10 years
Fixtures and fittings - Straight line over 6 years
Computer equipment - Straight line over 4 years

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Income Statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised immediately in the Income Statement.

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

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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.

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred, except where the development element qualifies as an intangible asset, in which case it is capitalised.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the Income Statement in the period to which they relate.

Invoice discounting
The group uses an invoice discounting facility and has adopted separate presentation whereby gross debts are included as an asset and the amount due to the finance company is included within other creditors. The interest and charges are recognised as they accrue and are included in the Income Statement.

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short term creditors are measured at transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
United Kingdom 5,180,863 9,731,603
Europe 2,062,994 3,634,993
Rest of the world 1,367,454 2,489,255
8,611,311 15,855,851

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


4. EMPLOYEES AND DIRECTORS
Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Wages and salaries 623,905 993,768
Social security costs 81,574 182,638
Other pension costs 39,257 114,137
744,736 1,290,543

The average number of employees during the period was as follows:
Period
1.9.22
to Year ended
31.3.23 31.8.22

Directors 6 6
Administration 9 10
Warehouse 13 13
28 29

The average number of employees by undertakings that were proportionately consolidated during the period was NIL (2022 - NIL).

Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Directors' remuneration 127,227 300,747
Directors' pension contributions to money purchase schemes 3,499 40,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 4

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


5. OPERATING PROFIT

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

Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Hire of plant and machinery 24,197 42,804
Other operating leases 177,688 340,226
Depreciation - owned assets 26,506 48,249
Depreciation - assets on hire purchase contracts or finance leases - 11,250
Profit on disposal of fixed assets - (34,321 )
Goodwill amortisation 75,974 130,241
Negative goodwill amortisation - (356,259 )
Computer software amortisation 3,131 2,024
Auditors' remuneration - audit 27,000 15,850
Foreign exchange differences 8,420 (53,123 )
Related party loan write off 157,926 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Bank interest 1,026 492
Invoice discounting interest 16,865 19,631
Other interest 9,872 -
Hire purchase - 4,710
27,763 24,833

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Current tax:
UK corporation tax 273,890 539,713

Deferred tax (2,794 ) (3,818 )
Tax on profit 271,096 535,895

UK corporation tax has been charged at 19 % (2022 - 19 %).

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


7. TAXATION - continued

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

Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Profit before tax 1,204,127 2,992,943
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

228,784

568,659

Effects of:
Expenses not deductible for tax purposes 41,688 34,653
Capital allowances in excess of depreciation (289 ) (1,292 )
Research and development enhancement (13,522 ) (23,182 )
Goodwill amortisation 14,435 24,746
Negative goodwill amortisation - (67,689 )
Total tax charge 271,096 535,895

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Ordinary shares of £0.10 each
Interim 75,000 -

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


10. INTANGIBLE FIXED ASSETS

Group
Negative Computer
Goodwill goodwill software Totals
£    £    £    £   
COST
At 1 September 2022 1,302,412 (356,259 ) 80,290 1,026,443
Additions - - 3,321 3,321
At 31 March 2023 1,302,412 (356,259 ) 83,611 1,029,764
AMORTISATION
At 1 September 2022 879,128 (356,259 ) 78,266 601,135
Amortisation for period 75,974 - 3,131 79,105
At 31 March 2023 955,102 (356,259 ) 81,397 680,240
NET BOOK VALUE
At 31 March 2023 347,310 - 2,214 349,524
At 31 August 2022 423,284 - 2,024 425,308

11. TANGIBLE FIXED ASSETS

Group
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 September 2022 1,365,945 120,345 119,830 1,606,120
Additions 3,934 1,120 3,635 8,689
At 31 March 2023 1,369,879 121,465 123,465 1,614,809
DEPRECIATION
At 1 September 2022 1,272,389 103,752 114,924 1,491,065
Charge for period 20,081 3,839 2,586 26,506
At 31 March 2023 1,292,470 107,591 117,510 1,517,571
NET BOOK VALUE
At 31 March 2023 77,409 13,874 5,955 97,238
At 31 August 2022 93,556 16,593 4,906 115,055

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 September 2022
and 31 March 2023 2,522,516
NET BOOK VALUE
At 31 March 2023 2,522,516
At 31 August 2022 2,522,516

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Penn-White Limited
Registered office: Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS
Nature of business: Chemical trading
%
Class of shares: holding
Ordinary A - Ordinary G 100.00

Pennwhite Print Solutions Limited
Registered office: Unit 6, Aston Way, Midpoint 18 Business Park, Middlewich, Cheshire, CW10 0HS
Nature of business: Chemical trading
%
Class of shares: holding
Ordinary A to Ordinary C 100.00

The company ceased trading on 31 March 2023, with trade and assets transferred to Penn-White Limited.


13. STOCKS

Group
2023 2022
£    £   
Raw materials 1,206,214 1,717,882
Finished goods 377,886 573,834
1,584,100 2,291,716

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 2,575,397 2,987,363 - -
Amounts owed by group undertakings 2,925,987 - 2,925,987 -
Other debtors 150,813 4,446 - -
Directors' current accounts - 3,027,313 - -
Corporation tax 453,337 453,337 - -
VAT - 148,543 - -
Deferred tax asset 14,395 11,601 - -
Prepayments and accrued income 155,286 113,417 - -
6,275,215 6,746,020 2,925,987 -

Deferred tax asset
Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 14,395 11,601 - -

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 623,475 728,055 - -
Amounts owed to group undertakings - - 2,469,643 27,390
Corporation tax 811,943 993,583 - -
Social security and other taxes 34,870 25,645 - -
VAT 8,436 - - -
Other creditors - 1,368,130 - -
Accruals and deferred income 147,081 305,466 - -
1,625,805 3,420,879 2,469,643 27,390

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 306,290 306,290
Between one and five years 963,405 883,186
1,269,695 1,189,476

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


17. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Invoice discounting - 1,372,110

The bank has a fixed and floating charge over group assets. Invoice discounting liabilities are secured on the underlying trade debtors.

18. DEFERRED TAX

Group
£   
Balance at 1 September 2022 (11,601 )
Credit to Income Statement during period (2,794 )
Balance at 31 March 2023 (14,395 )

The provision for deferred taxation is made up as follows
2023 2022
£ £
Accelerated capital allowances (14,395 ) (11,601 )
Other timing differences - -
(14,395 ) (11,601 )

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
11,260 Ordinary £0.10 1,126 269
- A Ordinary £0.10 - 52
- B Ordinary £0.10 - 73
- C Ordinary £0.10 - 164
- D Ordinary £0.10 - 164
- E Ordinary £0.10 - 164
- F Ordinary £0.10 - 164
1,126 1,050

During the year, 1,045 A Ordinary, 737 B Ordinary, 1,877 C Ordinary, 1,637 D Ordinary, 1,637 E Ordinary, and 1,637 F Ordinary 10p shares were redesignated as 8,570 Ordinary 10p shares.

All shares are now in the same class and carry dividend, voting and distribution rights.

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


20. RESERVES

Group
Retained
earnings
£   

At 1 September 2022 6,246,199
Profit for the period 933,031
Dividends (75,000 )
At 31 March 2023 7,104,230

Company
Retained
earnings
£   

At 1 September 2022 2,499,571
Profit for the period 554,259
Dividends (75,000 )
At 31 March 2023 2,978,830


21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the period ended 31 March 2023 and the year ended 31 August 2022:

2023 2022
£    £   
J J Whitehead
Balance outstanding at start of period 478,954 186,932
Amounts advanced 63,451 292,022
Amounts repaid (517,315 ) -
Amounts written off (25,090 ) -
Amounts waived - -
Balance outstanding at end of period - 478,954

Dr M J Humphries
Balance outstanding at start of period 695,137 294,728
Amounts advanced 63,727 400,409
Amounts repaid (722,683 ) -
Amounts written off (36,181 ) -
Amounts waived - -
Balance outstanding at end of period - 695,137

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

J J Whitehead
Balance outstanding at start of period 621,746 274,171
Amounts advanced 11,400 347,575
Amounts repaid (600,723 ) -
Amounts written off (32,423 ) -
Amounts waived - -
Balance outstanding at end of period - 621,746

S J Whitehead
Balance outstanding at start of period 620,068 272,521
Amounts advanced 11,400 347,547
Amounts repaid (599,131 ) -
Amounts written off (32,337 ) -
Amounts waived - -
Balance outstanding at end of period - 620,068

Mrs A H Hooley
Balance outstanding at start of period 611,409 264,060
Amounts advanced 11,400 347,349
Amounts repaid (590,915 ) -
Amounts written off (31,894 ) -
Amounts waived - -
Balance outstanding at end of period - 611,409

R J Richardson
Balance outstanding at start of period - 8,744
Amounts repaid - (8,744 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period - -

Interest is charged monthly on the directors' loan accounts at HMRC's official rate, on balances above £10,000. Loans are repayable on demand.

22. RELATED PARTY DISCLOSURES

Transactions with other group undertakings, where they are wholly owned by the Penn Globe Limited group, are not disclosed.

23. ULTIMATE CONTROLLING PARTY

The parent undertaking of the smallest and largest group for which consolidated accounts are prepared is Manali Petrochemicals Limited, incorporated in India. Consolidated accounts are available from the registered office: Spic House, 88 Mount Road, Guindy, Chennai, India, 600 032.

In the opinion of the directors, there is no ultimate controlling party.

PENN GLOBE LIMITED (REGISTERED NUMBER: 09800657)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 SEPTEMBER 2022 TO 31 MARCH 2023


24. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
1.9.22
to Year ended
31.3.23 31.8.22
£    £   
Profit before taxation 1,204,127 2,992,943
Depreciation charges 105,612 (164,495 )
Profit on disposal of fixed assets - (34,321 )
Finance costs 27,763 24,833
Finance income (97 ) (53,503 )
1,337,405 2,765,457
Decrease/(increase) in stocks 707,616 (913,766 )
Increase in trade and other debtors (2,553,714 ) (516,100 )
(Decrease)/increase in trade and other creditors (1,613,435 ) 385,246
Cash generated from operations (2,122,128 ) 1,720,837

25. 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:

Period ended 31 March 2023
31.3.23 1.9.22
£    £   
Cash and cash equivalents 425,084 90,105
Year ended 31 August 2022
31.8.22 1.9.21
£    £   
Cash and cash equivalents 90,105 554,649


26. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank 90,105 334,979 425,084
90,105 334,979 425,084
Total 90,105 334,979 425,084