Company registration number 12139248 (England and Wales)
SAR OVERSEAS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SAR OVERSEAS LTD
COMPANY INFORMATION
Directors
Mr R P Parmar
Ms A J Griffiths
Mr S Bamboli
(Appointed 8 September 2022)
Company number
12139248
Registered office
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1QR
Auditor
Carpenter Box
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
SAR OVERSEAS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
10
Balance sheet
9
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
SAR OVERSEAS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
Results and performance
The financial results of the company for the year ended 31 March 2023 are as follows:
Business environment
The Company is involved in the trade of polymers and related products. It procures goods from various countries and supplies to customers mainly based in India which comprises 90% of the volume of sales, with the balance being to customers elsewhere. Polymer as a product is in demand across the various locations especially India and other GCC countries resulting in a favourable business environment to trade with such countries. Most of the orders are against letters of credit or on an advance model which helps reduce the credit risk associated with the transactions.
Strategy
The company is now performing back to back transactions, where every purchase is linked to a specific sales order. This helps the company to maintain its margins and create insulation from various business risks associated with the international business. For the year ending 31 March 2024, the company projects turnover of over $100m. This will be achieved by targeting newer regions and markets in addition to addressing increased demand in India.
Principal risks and uncertainties
Market risk
The Company has focused more on a "back to back" sales model, where stock is only purchased once as the order is received, which helps to insulate from the various business risks relating to the products, markets and business. In these back to back orders, the price is defined beforehand and not at time of the despatch of material which covers the market risk associates with the business operations.
Liquidity risk
The group manages its cash and borrowing requirements centrally in order to minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The group is exposed to interest rate risk on its variable rate borrowings and cash flow interest rate risk on floating rate bank overdraft facilities and loans. The group ensures interest rate risk is managed by entering into contracts that are deemed to be suitable for the company's needs. The company has procedures and practises which helps in optimum utilisation of funds thus reducing the interest cost of the company.
Foreign currency risk
The Company’s principal functional currency is USD. The group's principal foreign currency exposures arise from trading with overseas companies. The group's policy permits but does not demand that these exposures may be hedged in order to fix the costs in USD.
SAR OVERSEAS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the directors. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Technology risk
The group is subject to risks relating to its ability to implement and maintain effective systems to process a high volume of transactions with customers. A failure to manage technology infrastructure and systems would adversely affect company performance.
COVID-19/Ukraine War/Other issues
The COVID-19 pandemic has brought all businesses unprecedented uncertainties and risk as well as the support provided by the government for business and individuals not seen in recent history. The company has taken measures and has appointed an offshore firm to take care of its accounting and back-office support needs which helps in reducing the cost of operations. In addition, the company is focussed on creating an ERP system which would support day-to-day operations and will help to provide timely results for taking timely business decisions.
Future developments
The company has been operating with customers majorly located in one region. Going forward the company is planning to expand its business horizon to multiple areas which will help not only to achieve the revenue targets but also minimise business risk in respect of Credit risk, Interest risk, Forex risk, etc. For timely decision taking, an ERP platform is being developed. In addition, to support in its operations the company is planning to increase the team size which would help achieve the desired targets.
Key performance indicators
The group monitors progress across a range of financial targets. The main key performance indicators are:
Ms A J Griffiths
Director
12 October 2023
SAR OVERSEAS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of the supplier of wholesale materials.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R P Parmar
Ms A J Griffiths
Mr S Bamboli
(Appointed 8 September 2022)
Auditor
Carpenter Box were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Ms A J Griffiths
Director
12 October 2023
SAR OVERSEAS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
The directors are responsible for preparing the annual report 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
SAR OVERSEAS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAR OVERSEAS LTD
- 5 -
Opinion
We have audited the financial statements of SAR Overseas Ltd (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, 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 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 March 2023 and of its profit 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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 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 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SAR OVERSEAS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAR OVERSEAS LTD
- 6 -
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 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 financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 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 financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: compliance with the UK Companies Act.
SAR OVERSEAS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAR OVERSEAS LTD
- 7 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Robert Dowling FCA (Senior Statutory Auditor)
For and on behalf of Carpenter Box
12 October 2023
Chartered Accountants
Statutory Auditor
Crawley
Carpenter Box is a trading name of Carpenter Box Limited
SAR OVERSEAS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
$
$
Turnover
2
71,127,969
17,359,426
Cost of sales
(68,983,000)
(15,947,408)
Gross profit
2,144,969
1,412,018
Administrative expenses
(804,247)
(134,297)
Operating profit
3
1,340,722
1,277,721
Interest receivable and similar income
6
45
-
Interest payable and similar expenses
7
(269,344)
(132,388)
Profit before taxation
1,071,423
1,145,333
Tax on profit
8
(252,993)
(224,837)
Profit for the financial year
818,430
920,496
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SAR OVERSEAS LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
$
$
$
$
Fixed assets
Tangible assets
9
1,811
-
Current assets
Stocks
10
881,600
1,966,320
Debtors
11
7,921,342
7,341,732
Cash at bank and in hand
1,471,526
7,151
10,274,468
9,315,203
Creditors: amounts falling due within one year
12
(8,290,459)
(8,148,308)
Net current assets
1,984,009
1,166,895
Total assets less current liabilities
1,985,820
1,166,895
Provisions for liabilities
Deferred tax liability
14
495
-
(495)
-
Net assets
1,985,325
1,166,895
Capital and reserves
Called up share capital
16
115,173
115,173
Profit and loss reserves
1,870,152
1,051,722
Total equity
1,985,325
1,166,895
The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
Ms A J Griffiths
Director
Company Registration No. 12139248
SAR OVERSEAS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
$
$
Profit for the year
818,430
920,496
Other comprehensive income
-
-
Total comprehensive income for the year
818,430
920,496
SAR OVERSEAS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 1 April 2021
13,048
131,226
144,274
Year ended 31 March 2022:
Profit and total comprehensive income
-
920,496
920,496
Issue of share capital
16
102,125
-
102,125
Balance at 31 March 2022
115,173
1,051,722
1,166,895
Year ended 31 March 2023:
Profit and total comprehensive income
-
818,430
818,430
Balance at 31 March 2023
115,173
1,870,152
1,985,325
SAR OVERSEAS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
20
(327,604)
(4,325,432)
Interest paid
(269,344)
(95,402)
Income taxes paid
(254,497)
(31,266)
Net cash outflow from operating activities
(851,445)
(4,452,100)
Investing activities
Purchase of tangible fixed assets
(2,650)
-
Interest received
45
-
Net cash used in investing activities
(2,605)
-
Financing activities
Proceeds from issue of shares
-
102,125
Proceeds from borrowings
99,418
600,000
Repayment of borrowings
(636,986)
-
Proceeds from new bank loans
-
392,439
Repayment of bank loans
(392,439)
-
Net cash (used in)/generated from financing activities
(930,007)
1,094,564
Net decrease in cash and cash equivalents
(1,784,057)
(3,357,536)
Cash and cash equivalents at beginning of year
(3,892,302)
(534,766)
Cash and cash equivalents at end of year
(5,676,359)
(3,892,302)
Relating to:
Cash at bank and in hand
1,471,526
7,151
Bank overdrafts included in creditors payable within one year
(7,147,885)
(3,899,453)
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information
SAR Overseas Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Amelia House, Crescent Road, Worthing, West Sussex, BN11 1QR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in US Dollar, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertaintiestrue, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (at the invoice date), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
33% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover and other revenue
2023
2022
$
$
Turnover analysed by class of business
Sale of chemicals
71,127,969
17,359,426
2023
2022
$
$
Turnover analysed by geographical market
India
63,239,826
17,177,426
United Arab Emirates
3,408,237
-
Africa
1,857,439
182,000
Asia
1,593,452
-
Canada
1,029,015
-
71,127,969
17,359,426
2023
2022
$
$
Other revenue
Interest income
45
-
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
$
$
Exchange losses
8,348
1,708
Fees payable to the company's auditor for the audit of the company's financial statements
19,507
6,126
Depreciation of owned tangible fixed assets
839
-
Operating lease charges
9,232
-
4
Employees
The average monthly number of persons (including director) employed by the company during the year was:
2023
2022
Number
Number
Directors
1
1
Their aggregate remuneration comprised:
2023
2022
$
$
Wages and salaries
42,082
-
Social security costs
11,267
-
53,349
-
5
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
42,082
-
6
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
45
-
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
7
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
250,674
12,947
Other interest on financial liabilities
18,670
119,441
269,344
132,388
8
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
207,072
209,071
Adjustments in respect of prior periods
(19,219)
13,357
UK income tax
64,645
2,409
Total current tax
252,498
224,837
Deferred tax
Origination and reversal of timing differences
495
-
Total tax charge
252,993
224,837
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
$
$
Profit before taxation
1,071,423
1,145,333
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
203,570
217,613
Permanent capital allowances in excess of depreciation
(126)
-
Under/(over) provided in prior years
(19,219)
13,357
Foreign exchange differences
4,273
(8,542)
Income tax charges
64,645
2,409
Rounding
(150)
-
Taxation charge for the year
252,993
224,837
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
9
Tangible fixed assets
Computers
$
Cost
At 1 April 2022
-
Additions
2,650
At 31 March 2023
2,650
Depreciation and impairment
At 1 April 2022
-
Depreciation charged in the year
839
At 31 March 2023
839
Carrying amount
At 31 March 2023
1,811
At 31 March 2022
-
10
Stocks
2023
2022
$
$
Raw materials and consumables
881,600
1,966,320
11
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
6,324,704
2,840,069
Other debtors
23,275
2,766
Prepayments and accrued income
1,573,363
4,498,897
7,921,342
7,341,732
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
$
$
Bank loans and overdrafts
13
7,147,885
4,291,892
Other borrowings
13
99,418
636,986
Trade creditors
421,861
22,380
Corporation tax
207,072
209,071
Other taxation and social security
33,237
16,491
Deferred income
15
323,713
2,970,543
Accruals and deferred income
57,273
945
8,290,459
8,148,308
Within bank loans and overdrafts is $Nil (2022 - $392,439) in relation to two letters of credit that were in place at 31 March 2022 and payment had been made to suppliers. Therefore this amount was owed to the bank at that date.
13
Loans and overdrafts
2023
2022
$
$
Bank loans
-
392,439
Bank overdrafts
7,147,885
3,899,453
Loans from group undertakings
99,418
636,986
7,247,303
4,928,878
Payable within one year
7,247,303
4,928,878
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
$
$
Accelerated capital allowances
495
-
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Deferred taxation
(Continued)
- 20 -
2023
Movements in the year:
$
Liability at 1 April 2022
-
Charge to profit or loss
495
Liability at 31 March 2023
495
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
15
Deferred income
2023
2022
$
$
Other deferred income
323,713
2,970,543
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary shares of £1 each
82,100
82,100
115,173
115,173
During the prior period the company issued 72,000 ordinary shares of £1 each.
The share capital of the company as at the balance sheet date comprised of 82,100 ordinary shares of £1 each, which were converted in US Dollar using the rate prevailing at the time of the transaction date.
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
17
Financial commitments, guarantees and contingent liabilities
At the prior year end, a letter of credit had been entered into amounting to $137,000. At this date no payment had been made to the supplier therefore this is not included in liabilities. The letter of credit was subsequently cancelled after 31 March 2022.
18
Related party transactions
As at the reporting date, the company owed £99,418 (2022 - £636,986) to the parent company.
19
Ultimate controlling party
The immediate parent company is Sushila Parmar International Pvt Ltd, a company registered in India at 31 Shree Adinath Shopping Centre, Pune Satara Road, Pune, Maharashtra, 411037, India.
SAR OVERSEAS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
20
Cash absorbed by operations
2023
2022
$
$
Profit for the year after tax
818,430
920,496
Adjustments for:
Taxation charged
252,993
224,837
Finance costs
269,344
132,388
Investment income
(45)
-
Depreciation and impairment of tangible fixed assets
839
-
Movements in working capital:
Decrease/(increase) in stocks
1,084,720
(1,966,320)
Increase in debtors
(579,610)
(6,596,397)
Increase/(decrease) in creditors
472,555
(10,979)
(Decrease)/increase in deferred income
(2,646,830)
2,970,543
Cash absorbed by operations
(327,604)
(4,325,432)
21
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
$
$
$
Cash at bank and in hand
7,151
1,464,375
1,471,526
Bank overdrafts
(3,899,453)
(3,248,432)
(7,147,885)
(3,892,302)
(1,784,057)
(5,676,359)
Borrowings excluding overdrafts
(1,029,425)
930,007
(99,418)
(4,921,727)
(854,050)
(5,775,777)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr R P ParmarMs A J GriffithsMr S Bambolifalse121392482022-04-012023-03-3112139248bus:Director12022-04-012023-03-3112139248bus:Director22022-04-012023-03-3112139248bus:Director32022-04-012023-03-3112139248bus:RegisteredOffice2022-04-012023-03-31121392482023-03-31121392482021-04-012022-03-3112139248core:ComputerEquipment2022-04-012023-03-3112139248bus:PrivateLimitedCompanyLtd2022-04-012023-03-3112139248bus:FRS1022022-04-012023-03-3112139248bus:Audited2022-04-012023-03-3112139248bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP