● |
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 |
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 |
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 |