Asian Sourcing Link UK Limited 05985054 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is the production of advertising and marketing goods. Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 false true 05985054 2022-04-01 2023-03-31 05985054 2023-03-31 05985054 bus:OrdinaryShareClass1 2023-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2023-03-31 05985054 core:ShareCapital 2023-03-31 05985054 core:CurrentFinancialInstruments 2023-03-31 05985054 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 05985054 core:BetweenTwoFiveYears 2023-03-31 05985054 core:WithinOneYear 2023-03-31 05985054 core:FurnitureFittingsToolsEquipment 2023-03-31 05985054 bus:FRS102 2022-04-01 2023-03-31 05985054 bus:Audited 2022-04-01 2023-03-31 05985054 bus:FullAccounts 2022-04-01 2023-03-31 05985054 bus:RegisteredOffice 2022-04-01 2023-03-31 05985054 bus:CompanySecretary1 2022-04-01 2023-03-31 05985054 bus:Director1 2022-04-01 2023-03-31 05985054 bus:Director3 2022-04-01 2023-03-31 05985054 bus:OrdinaryShareClass1 2022-04-01 2023-03-31 05985054 bus:Consolidated 2022-04-01 2023-03-31 05985054 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 05985054 3 2022-04-01 2023-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 05985054 core:ShareCapital 2022-04-01 2023-03-31 05985054 countries:Europe 2022-04-01 2023-03-31 05985054 countries:RestWorldOutsideEurope 2022-04-01 2023-03-31 05985054 countries:UnitedKingdom 2022-04-01 2023-03-31 05985054 core:LandBuildingsUnderOperatingLeases 2022-04-01 2023-03-31 05985054 core:ReportableOperatingSegment1 2022-04-01 2023-03-31 05985054 core:ReportableOperatingSegment2 2022-04-01 2023-03-31 05985054 core:ReportableOperatingSegment3 2022-04-01 2023-03-31 05985054 core:FurnitureFittingsToolsEquipment 2022-04-01 2023-03-31 05985054 core:OfficeEquipment 2022-04-01 2023-03-31 05985054 core:OtherRelatedParties 2022-04-01 2023-03-31 05985054 core:ForeignTax 2022-04-01 2023-03-31 05985054 core:UKTax 2022-04-01 2023-03-31 05985054 1 2022-04-01 2023-03-31 05985054 countries:AllCountries 2022-04-01 2023-03-31 05985054 2022-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2022-03-31 05985054 core:ShareCapital 2022-03-31 05985054 core:FurnitureFittingsToolsEquipment 2022-03-31 05985054 2021-04-01 2022-03-31 05985054 2022-03-31 05985054 bus:OrdinaryShareClass1 2022-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2022-03-31 05985054 core:ShareCapital 2022-03-31 05985054 core:CurrentFinancialInstruments 2022-03-31 05985054 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 05985054 core:BetweenTwoFiveYears 2022-03-31 05985054 core:WithinOneYear 2022-03-31 05985054 core:FurnitureFittingsToolsEquipment 2022-03-31 05985054 3 2021-04-01 2022-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 05985054 core:ShareCapital 2021-04-01 2022-03-31 05985054 countries:Europe 2021-04-01 2022-03-31 05985054 countries:RestWorldOutsideEurope 2021-04-01 2022-03-31 05985054 countries:UnitedKingdom 2021-04-01 2022-03-31 05985054 core:LandBuildingsUnderOperatingLeases 2021-04-01 2022-03-31 05985054 core:ForeignTax 2021-04-01 2022-03-31 05985054 core:UKTax 2021-04-01 2022-03-31 05985054 2021-03-31 05985054 core:RetainedEarningsAccumulatedLosses 2021-03-31 05985054 core:ShareCapital 2021-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 05985054

Asian Sourcing Link UK Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Asian Sourcing Link UK 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

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 22

 

Asian Sourcing Link UK Limited

Company Information

Directors

Mr A N W Pettigrew

Mr J Pollock

Company secretary

Mr J Pollock

Registered office

30 St Giles'
Oxford
OX1 3LE

Auditors

Wenn Townsend
Chartered Accountants and Registered Auditors
30 St Giles'
Oxford
OX1 3LE

 

Asian Sourcing Link UK Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is the production of advertising and marketing goods.

Fair review of the business

In the year ended 31 March 2023, the company achieved turnover of £10.6m (2022: £8.3m) and generated a gross margin of £2.2m (2022 £1.3m).

The Profit and Loss Account and Other Comprehensive Income of the Company is set out on page 9.

 

Asian Sourcing Link UK Limited

Strategic Report for the Year Ended 31 March 2023

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

Financial KPIs

Unit

2023

2022

Revenue

£000

10,577

8,305

Gross Margins

£000

2,175

1,303

Net Profit/(Loss) Before Tax

£000

398

(237)

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a number of risks. The key operational business risks and uncertainties that affect the Company are considered to be:

Actions of Competition

The company operates in an industry which has seen considerable consolidation over the last three years, with three major competitors merging together to form a dominant player ($2 billion+ revenues) in our space These mergers have been positive for the company as reduced competition has resulted in new contract wins for the company across multiple regions and increased revenues across our global network. The high cost of entry into the industry means that we expect to maintain this success and exploit the limited competition in the market with significant growth in FY23 and FY24 forecasted.

Exposure to Liquidity Risk

The company has a strong liquidity position, but liquidity risk is present due to potential unforeseen events that could impact cash flow. To counter this the business reviews its liquidity position on a weekly basis and maintains adequate cash reserves to ensure that it can meet its obligations.

Credit Risk

The company has credit risks associated with its customers and suppliers. This risk is mitigated partially due to nature of our clients, who tend to be large multi-national FMCG’s and also by the processes and procedures we have in place. These include weekly reviews of aged debt and pro-active monitoring of payment patterns.

Foreign Currency Risk

The company operates in multiple geographies and is exposed to foreign currency risk. The company manages this risk by using currency hedging instruments such as forward contracts and options.

In conclusion the Company is aware of several risks and uncertainties that could impact the company's operations and financial performance. We continue to monitor these risks closely and implement appropriate measures to mitigate them. We believe that the company's strong focus on innovation, diversification, and operational excellence will position it for continued growth and success.

Approved and authorised by the Board on 27 March 2024 and signed on its behalf by:
 

.........................................
Mr A N W Pettigrew
Director

 

Asian Sourcing Link UK Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

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

Mr A N W Pettigrew

Mr J Pollock

Disclosure of information to the auditors

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 and authorised by the Board on 27 March 2024 and signed on its behalf by:
 

.........................................
Mr A N W Pettigrew
Director

 

Asian Sourcing Link UK 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.

 

Asian Sourcing Link UK Limited

Independent Auditor's Report to the Members of Asian Sourcing Link UK Limited

Opinion

We have audited the financial statements of Asian Sourcing Link UK Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 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.

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 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.

 

Asian Sourcing Link UK Limited

Independent Auditor's Report to the Members of Asian Sourcing Link UK Limited

Opinion on other matter 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 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.

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 specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:

 

Asian Sourcing Link UK Limited

Independent Auditor's Report to the Members of Asian Sourcing Link UK Limited

• Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
• Enquiry of entity staff in tax and 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 disclosures and testing to supporting documentation 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 bias;

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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation 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 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.

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.

......................................
Benjamin Hayes BSc FCA (Senior Statutory Auditor)
For and on behalf of Wenn Townsend, Statutory Auditor

30 St Giles'
Oxford
OX1 3LE

27 March 2024

 

Asian Sourcing Link UK Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

10,576,931

8,304,500

Cost of sales

 

(8,402,071)

(7,001,510)

Gross profit

 

2,174,860

1,302,990

Administrative expenses

 

(1,833,884)

(1,743,181)

Other operating income

4

186,801

154,323

Operating profit/(loss)

5

527,777

(285,868)

Interest payable and similar expenses

6

(129,723)

49,167

 

(129,723)

49,167

Profit/(loss) before tax

 

398,054

(236,701)

Taxation

10

-

(128,000)

Profit/(loss) for the financial year

 

398,054

(364,701)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Asian Sourcing Link UK Limited

(Registration number: 05985054)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

39,915

51,502

Current assets

 

Stocks

12

1,096,272

698,646

Debtors

13

7,690,525

7,947,652

Cash at bank and in hand

 

374,572

1,890,960

 

9,161,369

10,537,258

Creditors: Amounts falling due within one year

15

(9,017,198)

(10,802,728)

Net current assets/(liabilities)

 

144,171

(265,470)

Net assets/(liabilities)

 

184,086

(213,968)

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

183,086

(214,968)

Shareholders' funds/(deficit)

 

184,086

(213,968)

Approved and authorised by the Board on 27 March 2024 and signed on its behalf by:
 

.........................................
Mr A N W Pettigrew
Director

 

Asian Sourcing Link UK Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

1,000

(214,968)

(213,968)

Profit for the year

-

398,054

398,054

At 31 March 2023

1,000

183,086

184,086

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

1,000

149,733

150,733

Loss for the year

-

(364,701)

(364,701)

At 31 March 2022

1,000

(214,968)

(213,968)

 

Asian Sourcing Link UK Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit/(loss) for the year

 

398,054

(364,701)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

29,794

59,821

Finance costs

6

114,683

79,643

Income tax expense

10

-

128,000

 

542,531

(97,237)

Working capital adjustments

 

Increase in stocks

12

(397,626)

(698,646)

Decrease/(increase) in trade debtors

13

257,127

(1,725,833)

Increase in trade creditors

15

601,334

2,934,479

Cash generated from operations

 

1,003,366

412,763

Income taxes paid

10

(128,000)

-

Net cash flow from operating activities

 

875,366

412,763

Cash flows from investing activities

 

Acquisitions of tangible assets

(18,207)

(43,727)

Cash flows from financing activities

 

Interest paid

6

(114,683)

(79,643)

Repayment of other borrowing

 

(1,037,715)

346,422

Net cash flows from financing activities

 

(1,152,398)

266,779

Net (decrease)/increase in cash and cash equivalents

 

(295,239)

635,815

Cash and cash equivalents at 1 April

 

665,828

30,013

Cash and cash equivalents at 31 March

 

370,589

665,828

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in the UK.

The address of its registered office is:
30 St Giles'
Oxford
OX1 3LE

The principal place of business is:
The Coach House and Lodge
Grimsbury Green
Banbury
Oxfordshire
OX16 3JQ

These financial statements were authorised for issue by the Board on 27 March 2024.

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 United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis as the directors consider this to be appropriate based on their latest assessment of the company forecasts and projections. The company has returned to a net asset position as at 31st March 2023, with profits reported in the year. Continued parent company support is available as required, with the UK entity a key component for its global operations, and there are no indications of any issues with regards to bank finance. Based on this, the directors are satisfied that the company remains a going concern.

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenue and expenditure in the year. The nature of estimation means that the actual outcomes could differ on those estimates, although they are continually evaluated and are based on historical experience and other factors.

The only estimate/assumption deemed to have a significant impact on the carrying values in the accounts as at the year end relate to the potential for bad debts on trade debtors, and any associated bad debt provision. As at the year end, trade debtors totalled £3,096k (2022: £3,357k).

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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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 change 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 balance sheet 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

Office equipment

5 years straight line

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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 and work in progress comprises direct materials and, where applicable, direct labour costs and those 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 profit and loss account 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.

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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.

3

Turnover

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

2023
£

2022
£

Sale of goods

10,576,931

8,304,500

The analysis of the company's Turnover for the year by market is as follows:

2023
£

2022
£

UK

4,901,873

2,521,979

Europe

5,670,864

5,627,880

Rest of world

4,194

154,641

10,576,931

8,304,500

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Management charges receivable

186,801

154,323

5

Operating profit/(loss)

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

29,794

59,821

Operating lease expense - property

40,672

53,812

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

114,683

79,643

Foreign exchange gains/(losses)

15,040

(128,810)

129,723

(49,167)

7

Staff costs

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

2023
£

2022
£

Wages and salaries

626,949

732,249

Social security costs

306,201

222,428

Pension costs, defined contribution scheme

65,853

53,087

999,003

1,007,764

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

2023
No.

2022
No.

Other departments

39

32

39

32

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

83,127

85,432

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

18,950

14,750


 

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

10

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Foreign tax adjustment to prior periods

-

128,000

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit/(loss) before tax

398,054

(236,701)

Corporation tax at standard rate

99,514

(44,973)

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

-

400

Effect of tax losses

(99,514)

44,064

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

-

128,000

Tax increase from effect of capital allowances and depreciation

-

509

Total tax charge

-

128,000

The Company has a potential deferred tax asset in respect of taxable losses, which are available to be offset against future UK taxable profits. This has been calculated at a rate of 25% (2022: 19%). As at 31st March 2023 the amount not recognised was c£200,000 (2022: c£250,000).

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 April 2022

215,493

215,493

Additions

18,207

18,207

At 31 March 2023

233,700

233,700

Depreciation

At 1 April 2022

163,991

163,991

Charge for the year

29,794

29,794

At 31 March 2023

193,785

193,785

Carrying amount

At 31 March 2023

39,915

39,915

At 31 March 2022

51,502

51,502

12

Stocks

2023
£

2022
£

Other inventories

1,096,272

698,646

13

Debtors

Note

2023
£

2022
£

Trade debtors

 

3,095,521

3,357,621

Amounts owed by related parties

20

4,085,528

4,325,397

Other debtors

 

330,765

-

Prepayments

 

178,711

264,634

 

7,690,525

7,947,652

The company sold with recourse trade receivables to a bank for cash proceeds. The trade receivables have not been derecognised from the balance sheet, because the company retains substantially all of the risks and rewards - primarily credit risk. The amount received on transfer has been recognised as factoring financing in note 15. In relation to the financing, the company has given charge on some of the assets.

As at 31 March 2023 the carrying amount of trade receivables transferred to a bank was £627,942 (2022: £1,665,657) and the carrying amount of the associated liabilities was £627,942 (2022: £1,665,657).

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

14

Cash and cash equivalents

2023
£

2022
£

Cash at bank

374,572

1,890,960

Bank overdrafts

(3,983)

(1,225,132)

Cash and cash equivalents in statement of cash flows

370,589

665,828

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

18

631,925

2,890,789

Trade creditors

 

997,583

1,448,543

Amounts due to related parties

20

5,586,107

5,949,045

Social security and other taxes

 

113,584

115,569

Other payables

 

15,835

42,384

Accruals

 

1,672,164

228,398

Income tax liability

10

-

128,000

 

9,017,198

10,802,728

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 £65,853 (2022 - £53,087).

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

1000 ordinary shares of £1 each

1,000

1,000

1,000

1,000

         
 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

18

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

3,983

1,225,132

Factoring financing

627,942

1,665,657

631,925

2,890,789

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

15,417

37,000

Later than one year and not later than five years

-

15,417

15,417

52,417

The amount of non-cancellable operating lease payments recognised as an expense during the year was £40,673 (2022 - £53,812).

20

Related party transactions

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

83,127

85,432

Summary of transactions with other related parties

Transactions with other group entities

The company, being a wholly owned subsidiary undertaking of Asian Sourcing Link Limited, has taken advantage of the exemptions available to it under FRS102 with respect to disclosure of transactions with other group entities.

Amounts due to and from group undertakings are repayable on demand and bear no interest.

 

 

Asian Sourcing Link UK Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

21

Parent and ultimate parent undertaking

The company's immediate parent is Asian Sourcing Link Limited, incorporated in Hong Kong.

 The most senior parent entity producing publicly available financial statements is Asian Sourcing Link Limited. These financial statements are available upon request from the parent company.

 The ultimate controlling party is Mr A N Pettigrew.