Registered number
07847058
VACMET EUROPE LTD
Filleted Accounts
For the year ended 31 March 2023
VACMET EUROPE LTD
Independent auditor's report
to the members of VACMET EUROPE LTD
Opinion
We have audited the accounts of VACMET EUROPE LTD (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the accounts, including 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 the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 an auditor's report 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.
In our opinion the accounts:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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 Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out below, 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.
In accordance with the exemption provided by FRC's Ethical Standard - Provisions Available for Audits of Small Entities, we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts.
Conclusions relating to going concern
In auditing the accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.
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 directors’ report for the financial year for which the accounts are prepared is consistent with the accounts; and
the directors’ report has been prepared in accordance with applicable legal requirements.
Other information
The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the accounts 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of 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 accounts 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.
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 directors’ report.
We have nothing to report in respect of the following matters in relation to which 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 accounts 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; or
the directors were not entitled to prepare the accounts in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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.
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report 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 accounts.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigations and claims;
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosure and testing to supporting documents to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bids.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements of non-compliance with regulations. This risk increases further when that compliance with law and regulations is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities for the audit of the accounts is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor's report 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.
Mr Opinder Singh Sawhney
(Senior Statutory Auditor) Harrow Business Centre
for and on behalf of 429-433 Pinner Road,North Harrow
Sawhney Consulting Middlesex
Statutory Auditor United Kingdom
7 July 2023 HA1 4HN
VACMET EUROPE LTD
Registered number: 07847058
Balance Sheet
as at 31 March 2023
Notes 2023 2022
£ £
Current assets
Stocks 220,545 -
Debtors 7 349,131 369,364
Cash at bank and in hand 478,339 207,940
1,048,015 577,304
Creditors: amounts falling due within one year 9 (513,838) (157,096)
Net current assets 534,177 420,208
Net assets 534,177 420,208
Capital and reserves
Called up share capital 10,000 10,000
Profit and loss account 524,177 410,208
Shareholders' funds 534,177 420,208
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr Mayank Agarwal
Director
Approved by the board on 7 July 2023
VACMET EUROPE LTD
Notes to the Accounts
for the year ended 31 March 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
3 Employees 2023 2022
Number Number
Average number of persons employed by the company 1 1
4 Revenue from operations 2023 2022
£ £
Sale of products 2,134,679 5,065,105
Less/Add: Rebate and discounts 22,295 1,658
2,156,974 5,066,763
Customer contributing 10% or more to the company's revenue for 2022-23 are as under :-
2023
Customer Name %
Plastribution Ltd 1,289,699 59.79%
FFP Packaging Solutions 258,944 12.00%
1,548,643 71.79%
Sale of products comprises (gross) :
Manufactured Products: 2023 2022
£ £
Polyester film 522,841 1,753,467
Metallised polyester film 9,069 362,044
BOPP film 1,602,769 2,910,307
Lacquered polyester film 39,287
2,134,679 5,065,105
5 Segment Reporting
The Company is engaged in the business of BOPET, BOPP films and polyester chips. This is the only activity performed and is thus also the main source of risks and returns. The Company has a single reportable segment.
Information about geographical segment:
(i) Revenues within United Kingdom include sales to customers located within United Kingdom.
(ii) Revenues outside United Kingdom include sales to customers located outside United Kingdom.
Geographical Segment 2023 2022
Revenue by geographical segment (gross) £ £
United Kingdom 2,076,113 3,360,386
Outside United Kingdom 58,566 1,704,719
Total 2,134,679 5,065,105
Segment assets (Trade receivables)
United Kingdom 335,246 94,166
Outside United Kingdom 133,538 495,928
Total 468,784 590,094
6 Changes in stock 2023 2022
£ £
Opening stock - 323,114
Less: Closing stock (220,545)
Change in stock (220,545) 323,114
Stock 2023 2022
£ £
Polyester film 27,770 -
BOPP film 192,690 -
Metallised polyester film 85 -
220,545 -
7 Debtors 2023 2022
£ £
Trade debtors 347,735 368,086
Other debtors 1,396 1,278
349,131 369,364
Note
Unsecured, considered good 347,735 368,086
Unsecured, considered doubtful 121,049 222,008
468,784 590,094
Less: Allowance for expected credit loss (121,049) (222,008)
347,735 368,086
Age of receivables 2023 2023 2022 2022
£ £ £ £
Undisputed Trade receivables - considered goods Undisputed Trade receivables- considered doubtful Undisputed Trade receivables - considered goods Undisputed Trade receivables- considered doubtful
Amounts not due yet 317,829 303,340
Amounts due for less than 6 months 29,906 62,517
Amounts due for more than 6 months but less than 1 year - -
Amounts due for more than 1 year but less than 2 years 121,049 2,229 222,008
Amounts due for more than 2 year but less than 3 years - -
347,735 121,049 368,086 222,008
8 Struck off companies
The company does not have any transaction with the struck off companies during the year for which provision for bad debts is made.
9 Creditors: amounts falling due within one year 2023 2022
£ £
Trade creditors 421,326 90,784
Corporation tax 26,734 25,772
Taxation and social security costs 32,421 3,208
Other creditors 33,357 37,332
513,838 157,096
Trade creditors 2023 2022
£ £
Vacmet India Limited (gross) 623,998 719,117
Other (gross) 84,958 27,834
Total (gross) 708,956 746,951
Less: Advance to suppliers (287,630) (656,167)
421,326 90,784
Age of trade creditors 2023 2023 2022 2022
£ £ £ £
Undisputed disputed Undisputed disputed
Amounts not due yet 499,615 253,584 -
Amounts due for less than 1 year 97,955 287,102 -
Amounts due for more than 1 year but less than 2 years 6,740 206,265 -
Amounts due for more than 2 year but less than 3 years 104,646 - -
708,956 - 746,951 -
10 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases - 7,476
11 Fair value hierarchy
Some of the company's financial assets are measured at fair value at the end of each reporting period.
The following table presents fair value hierarchy of financial assets measured at fair value on a recurring basis:
Level 1 Level 2 Level 3 Total
At 31 March 2023 £ £ £ £
Financial Assets
Investments - - - -
Loans - - - -
Other financial assets - - 1,396 1,396
Trade receivables - - 468,785 468,785
Cash and cash equivalents - - 478,339 478,339
Bank balances other than cash and cash equivalents - - -
Total - - 948,520 948,520
Financial Liabilities
Borrowings - - - -
Trade payables - - 735,013 735,013
Lease liabilities - - - -
Other financial liabilities - - - -
Total - - 735,013 735,013
At 31 March 2022
Financial Assets
Investments - - - -
Loans - - - -
Other financial assets - - 1,278 1,278
Trade receivables - - 590,094 590,094
Cash and cash equivalents - - 207,941 207,941
Bank balances other than cash and cash equivalents - - - -
Total - - 799,313 799,313
Financial Liabilities
Borrowings - - - -
Trade payables - - 777,205 777,205
Lease liabilities - - - -
Other financial liabilities - - - -
Total - - 777,205 777,205
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3 inputs are unobservable inputs for the assets or liability.
12 Contingent liabilities
Company does not have any contingent asset or contigent liability.
13  Crypto Currency or Virtual Currency
There is no trading in crypto or virtual currency during the year.
14 Borrowed funds
No transactions need to be reported against the below disclosure requirements:
i Wilful defaulter
ii Utilisation of borrowed funds and share premium
iii Borrowings obtained on the basis of security of current assets
iv Discrepancy in utilisation of borrowings
15 Loans - working capital
Company does not obtained any borrowing during the year.
16 Share capital Nominal 2023 2023 2022
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 10,000 10,000 10,000
17 Profit and loss account 2023
£
At 1 April 2022 410,208
Profit for the year 113,969
At 31 March 2023 524,177
Comparative figures
Previous years note to the accounts have been added and represented to make them comparable with the currrent year.
18 Related party transactions
At the year end, the company owed £336,368 to Vacmet India Ltd.
During the year the company booked purchase amounting to £2,102,411 for transactions incurred with Vacmet India Ltd during the course of normal trading at the market rate.
19 Controlling party
The company is a wholly owned subsidiary of Vacmet India Ltd a company registered in India. Vacmet India Limited prepares consolidated financial statements which can be obtained by writing to the registered office address of the company.The registered office of the parent company is Anant Plaza, IInd Floor, 4/117-2A, Civil Lines, Church Road, Agra-2 (India).
20 Other information
VACMET EUROPE LTD is a private company limited by shares and incorporated in England. Its registered office is:
Devonshire House
582 Honeypot Lane
Stanmore
Middlesex
HA7 1JS
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