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Registration number: 02806367

Technocraft International Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2022

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Technocraft International Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Statement of Income and Retained Earnings

9

Statement of Financial Position

10

Notes to the Financial Statements

11 to 21

 

Technocraft International Limited

Company Information

Directors

S K Saraf

A K Saraf

N K Saraf

Company secretary

L F M Russell

Registered office

Unit 2 Hammond Court
Hammond Avenue
Whitehill Industrial Estate
Stockport
Cheshire
SK4 1PQ

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
W1D 5AR

 

Technocraft International Limited

Strategic Report for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the company is that of the importation and distribution of specialist products including closures, scaffolding and formwork.

Fair review of the business

The company's performance during the year was satisfactory, considering the challenging business environment in the UK and Europe. Despite dull market conditions, the company made a profit. The global geo-political disturbances may have put certain pressure on the business on small to mid-term basis but the company has been able to maintain its market position and its overall performance.

Turnover increased by 6.4% over 2021 to £2,103,435 although the gross profit margin fell from 17.1% to 13.5% due to pressure on costs due to global events. Administrative expenses in the year were similar to 2021 resulting in an operating profit of £69,600. Significant dividends were received from subsidiary undertakings. Profit before tax amounted to £704,782, an increase of £241,820 over 2021.

As a result of the profit for the year, net assets rose to £2,486,869 which includes cash at bank of £597,070.
 

Financial Key Performance Indicators

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2022

2021

Turnover

£

2,103,435

1,976,161

Profit before tax

£

704,782

462,962

Net Assets

£

2,486,869

1,817,417

There are numerous non-financial performance indicators used by the directors, but none are considered to be key.

Core Future Stratagies

The directors continue to focus on their core strategic priorities, namely:

• Prioritising customer satisfaction and building strong customer relationships thereby delivering value to the customers.

• Continue to develop a learning culture amongst employees in order to drive future business efficiencies.

• Embracing innovation and adapting to the technological advancements and market changes.

• Continuing to strengthen the leadership team.

The business ensures that it achieves its objectives by reviewing them on a regular basis against the results achieved in the period. Regular board meetings are held to discuss the progress of its objectives and to discuss future plans for the business.

 

Technocraft International Limited

Strategic Report for the Year Ended 31 December 2022

Principal risks and uncertainties

Liquidity risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all of the financial obligations, the company has credit facilities available.

Interest rate risk

The company finances its operations through a mixture of working capital and borrowings from group undertakings. The Company is exposed to risk on there variable rate borrowings.

Foreign currency risk

The Company trades mainly in sterling. Its trade in Euros and US Dollars is exposed to exchange rate fluctuations and the policy of the company is not to hedge this risk. Stock and purchases are also acquired in Euro and US Dollars, exposing the company to exchange rate risk.

Credit risk

The company may offer credit terms to its customers which allow payment of the debt after the delivery of the goods. The company is at risk to the extent that a customer may be unable to pay the debt on a specified due date. This risk is mitigated through the company policy to assess the credit risk of new customers and to factor the information from those credit ratings into future dealings with customers. At 31 December 2022 there were no significant concentrations of credit risk.

Future Prospects

The company plans to continue with plans to promote growth and innovation.

With a commitment to sustainability and customer satisfaction, the company is well placed to drive economic progress and maintain its place in the industry.

Approved by the Board on 15 November 2023 and signed on its behalf by:

.........................................
S K Saraf
Director

 

Technocraft International Limited

Directors' Report for the Year Ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors of the company

The directors who held office during the year were as follows:

S K Saraf

A K Saraf

N K Saraf

Dividends

No dividends were declared and paid during the year (2021: £Nil), no final dividend is proposed.

Information included in the Strategic Report

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 15 November 2023 and signed by:



 

.........................................
S K Saraf
Director

 

Technocraft International Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Technocraft International Limited

Independent Auditor's Report to the Members of Technocraft International Limited
for the Year Ended 31 December 2022

Opinion

We have audited the financial statements of Technocraft International Limited (the 'company') for the year ended 31 December 2022, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, 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 company's affairs as at 31 December 2022 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.

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 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Technocraft International Limited

Independent Auditor's Report to the Members of Technocraft International Limited
for the Year Ended 31 December 2022

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 5), 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.

 

Technocraft International Limited

Independent Auditor's Report to the Members of Technocraft International Limited
for the Year Ended 31 December 2022

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws and health and safety legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.

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.

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
130 Shaftesbury Avenue
W1D 5AR

15 November 2023

 

Technocraft International Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2022

Note

2022
£

2021
£

Turnover

3

2,103,435

1,976,161

Cost of sales

 

(1,819,596)

(1,637,950)

Gross profit

 

283,839

338,211

Administrative expenses

 

(214,239)

(216,103)

Operating profit

4

69,600

122,108

Income from shares in group undertakings

 

687,395

346,511

Other interest receivable and similar income

5

121,434

7,437

Interest payable and similar charges

6

(173,647)

(13,094)

 

635,182

340,854

Profit before tax

 

704,782

462,962

Taxation

9

(35,330)

(13,775)

Profit for the financial year

 

669,452

449,187

Retained earnings brought forward

 

467,415

18,228

Retained earnings carried forward

 

1,136,867

467,415

 

Technocraft International Limited

Statement of Financial Position as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

10

276,798

276,172

Investments

11

33,060

33,300

 

309,858

309,472

Current assets

 

Stocks

12

770,629

487,093

Debtors

13

2,107,715

1,307,913

Cash at bank and in hand

 

597,070

45,343

 

3,475,414

1,840,349

Creditors: Amounts falling due within one year

15

(1,298,403)

(323,047)

Net current assets

 

2,177,011

1,517,302

Total assets less current liabilities

 

2,486,869

1,826,774

Creditors: Amounts falling due after more than one year

15

-

(9,357)

Net assets

 

2,486,869

1,817,417

Capital and reserves

 

Called up share capital

1,350,002

1,350,002

Retained earnings

18

1,136,867

467,415

Shareholders' funds

 

2,486,869

1,817,417

Approved and authorised by the Board on 15 November 2023 and signed on its behalf by:

 

......................................................................

S K Saraf

Director

Company registration number: 02806367

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 2 Hammond Court
Hammond Avenue
Whitehill Industrial Estate
Stockport
Cheshire
SK4 1PQ

The principal activity of the company was that of importation and distribution of specialised products including closures, scaffolding and formworks.

The principal place of business is:
Unit 2 Hammond Court
Hammond Avenue
Whitehill Industrial Estate
Stockport
Cheshire
SK4 1PQ

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS102:

(a) No cash flow statement has been presented for the company
(b) Disclosures in respect of financial instruments have not been presented
(c) No disclosure has been given for the aggregate remuneration of key management personnel..

Group accounts not prepared

Exemption is taken from preparing consolidated financial statements under Companies Act 2006 Section 401 on the basis that the company and its subsidiary undertakings are reflected in the consolidated financial statements of its immediate parent undertaking which are publicly available.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Going concern

The company made a profit for the year ended 31 December 2022 and had net assets at that date amounting to £2,486,869, including cash at bank of £597,070.

The company's working capital requirements are currently met via a combination of cash reserves, bank facilities and loans from the parent company.

Based on the above and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are
based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Other than those involving estimations there are no judgements that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year
are as follows:

• Useful economic lives of intangible and tangible assets

The annual amortisation charge for intangible assets and the annual depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful
economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the
physical condition of the assets.

• Impairment of trade debtors

The company makes an estimate of the recoverable value of trade debtors and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the companies activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Revenue from the sale of goods is recognised when the significant risk and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% straight line

Plant and machinery

15% straight line

Furniture, fittings and equipment

25% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, direct labour overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis
over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease
obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2022
 £

2021
 £

Sale of goods

2,103,435

1,976,161

An analysis of turnover by geographical market is as follows:

2022
 £

2021
 £

United Kingdom

767,803

1,193,803

Europe

683,254

774,947

Rest of the world

652,378

7,411

2,103,435

1,976,161

4

Operating profit

Arrived at after charging/(crediting)

2022
 £

2021
 £

Depreciation expense

6,015

2,618

Foreign exchange losses

30,478

59,520

Operating lease expense

2,145

581

Profit on disposal of property, plant and equipment

(1,000)

-

5

Other interest receivable and similar income

2022
 £

2021
 £

Other interest receivable

121,434

7,437

6

Interest payable and similar expenses

2022
 £

2021
 £

Bank and other interest payable

173,647

13,094

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

56,105

54,968

Social security costs

1,005

1,037

Pension costs, defined contribution scheme

1,464

1,434

58,574

57,439

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
No.

2021
No.

Administration and support

1

1

Other departments

1

1

2

2

8

Auditor's remuneration

2022
 £

2021
 £

Audit of the financial statements

10,000

10,000


 

9

Taxation

Tax charged/(credited) in the income statement

2022
£

2021
£

Current taxation

UK corporation tax

35,330

1,413

UK corporation tax adjustment to prior periods

-

12,362

Tax charge in the income statement

35,330

13,775

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - lower than the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Profit before tax

704,782

462,962

Corporation tax at standard rate

133,909

87,963

Effect of revenues exempt from taxation

(130,605)

(65,837)

Effect of expense not deductible in determining taxable profit (tax loss)

1,458

-

Effect of tax losses

(4,264)

(21,805)

Increase in UK and foreign current tax from adjustment for prior periods

-

12,956

Tax (decrease)/increase from effect of capital allowances and depreciation

(498)

498

Tax increase arising from overseas tax suffered/expensed

35,330

-

Total tax charge

35,330

13,775

10

Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2022

367,643

24,779

14,110

406,532

Additions

-

-

6,641

6,641

Disposals

-

-

(4,770)

(4,770)

At 31 December 2022

367,643

24,779

15,981

408,403

Depreciation

At 1 January 2022

91,471

24,779

14,110

130,360

Charge for the year

5,237

-

778

6,015

Eliminated on disposal

-

-

(4,770)

(4,770)

At 31 December 2022

96,708

24,779

10,118

131,605

Carrying amount

At 31 December 2022

270,935

-

5,863

276,798

At 31 December 2021

276,172

-

-

276,172

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

11

Investments

2022
 £

2021
 £

Investments in subsidiaries

33,060

33,300

Subsidiaries

£

Cost or valuation

At 1 January 2022

33,300

Revaluation

(240)

At 31 December 2022

33,060

Carrying amount

At 31 December 2022

33,060

At 31 December 2021

33,300

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Highmark International Trading-F.Z.E

Office – C1 -1204A, Ajman Free Zone, UAE

Ordinary

100%

100%

         

AA International Trading LLC

8010 W. Sample Road, Coral Springs, Fl 33065, USA

Membership Units

85%

85%

         

12

Stocks

2022
 £

2021
 £

Stock

770,629

487,093

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

13

Debtors

Note

2022
 £

2021
 £

Trade debtors

 

516,113

647,436

Amounts owed by group undertakings

20

140,584

650,471

Other debtors

 

1,445,202

4,011

Prepayments

 

5,816

5,995

Total current trade and other debtors

 

2,107,715

1,307,913

Other debtors include an amount of £110,609 (2021: £Nil) receivable in greater than one year.

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

Other debtors includes a loan to a third party repayable by January 2024 that is unsecured, on which interest is receivable at 5% per annum and 7% per annum.

14

Cash and cash equivalents

2022
 £

2021
 £

Cash at bank

597,070

45,343

15

Creditors

Note

2022
 £

2021
 £

Due within one year

 

Loans and borrowings

19

1,116

6,238

Trade creditors

 

14,338

143,583

Amounts due to group undertakings

 

1,155,239

-

Social security and other taxes

 

105,888

105,059

Other payables

 

7,415

5,990

Accrued expenses

 

14,407

60,757

Corporation tax liability

9

-

1,420

 

1,298,403

323,047

Due after one year

 

Loans and borrowings

19

-

9,357

Amounts due to group undertakings are unsecured, repayable on demand and bear interest at market rates.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £1,464 (2021 - £1,434).

17

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

1,350,002

1,350,002

1,350,002

1,350,002

         

There is no restriction on the repayment of capital or distribution of dividends.

18

Reserves

The profit and loss account includes all current and prior retained earnings and accumulated losses.

19

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank loan

-

9,357

The bank loan is secured by a fixed and floating charge over the assets and undertakings of the company.

2022
£

2021
£

Current loans and borrowings

Bank borrowings

1,116

6,238

20

Related party transactions

In accordance with FRS102 paragraph 33.1A exemption is taken not to disclose transactions or amounts due between wholly owned group undertakings.

 

Technocraft International Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

21

Relationship between entity and parents

The company is a subsidiary of Technocraft Industries (India) Limited incorporated in India, which is also the ultimate parent undertaking.

The parent of the smallest and largest group preparing group accounts including the results of the company is Technocraft Industries (India) Limited.

The registered address of Technocraft Industries (India) Limited is:
A-25, MIDC, Road No. 3
Andheri (East) Mumbai - 400 093
Maharashtra, India