Financial Statements
Europack Ltd
For the year ended 30 June 2023
Registered number: 03543370
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Company Information
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Chartered Accountants & Statutory Auditors
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The Royal Bank of Scotland
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Contents
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Statement of financial position
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Notes to the financial statements
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Europack Ltd
Registered number:03543370
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Statement of financial position
As at 30 June 2023
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
Page 1
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Europack Ltd
Registered number:03543370
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Statement of financial position (continued)
As at 30 June 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 11 form part of these financial statements.
Page 2
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Notes to the financial statements
For the year ended 30 June 2023
Europack Limited is a private Company, limited by shares, incorporated and domiciled in England and Wales, within the United Kingdom. The address of its registered office is Euro House, Dale Street, Craven Arms, Shropshire, SY7 9PA. The principal activity of the Company is that of a hotelier.
2.Accounting policies
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Basis of preparation of financial statements
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These financial statements have been prepared in accordance with applicable accounting standards, including Section 1A of Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain investment properties as specified in the accounting policies below.
The financial statements are presented in Sterling (£).
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Finance income is recognised in profit or loss using the effective interest method.
The contributions to employee pension are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position.
Page 3
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Notes to the financial statements
For the year ended 30 June 2023
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 4
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Notes to the financial statements
For the year ended 30 June 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Investment property is carried at fair value determined annually by the directors with reference to external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is 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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, inclusive of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, inclusive of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 5
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Notes to the financial statements
For the year ended 30 June 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small Company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The following are significant management assumptions in applying the accounting policies of the Company that have the most significant effect on the financial statements.
Estimating allowance for impairment losses on tangible assets
The Company assesses impairment on tangible assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Company considers important which could trigger an impairment review include the following:
∙significant changes in the manner of use of the acquired assets or the strategy for overall business; and
∙significant negative industry or economic trends.
These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss would be recognised whenever evidence exists that the carrying value is not recoverable.
Page 6
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Notes to the financial statements
For the year ended 30 June 2023
3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)
Valuation of investment properties
The Company’s investment properties are carried at revalued amount at the end of the reporting period. In determining the fair value of these assets, the Company engages the services of professional and independent appraisers applying the relevant valuation methodologies and the directors use these valuations to support their own valuation considerations.
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The average monthly number of employees, including directors, during the year was 21 (2022 - 23).
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Charge for the year on owned assets
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Page 7
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Notes to the financial statements
For the year ended 30 June 2023
The directors have considered the fair value of the Company's freehold investment property valuation at the year ended 30 June 2023. This valuation carried out by the directors is with reference to the independent valuation carried out on an open market basis by George Adams Estate Agents.
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Finished goods and goods for resale
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Due after more than one year
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Amounts owed by related party undertakings (note 17)
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Amounts owed by related party undertakings consist of a loan to Grove Park Limited of £2,161,376 (2022: £1,801,226), which bears an interest of 1% (2022: 3%) over the Bank of England base rate per annum.
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Prepayments and accrued income
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Page 8
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Notes to the financial statements
For the year ended 30 June 2023
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Trade and other creditors are payable at various dates over the coming months in accordance with the suppliers' usual and customary credit terms.
Corporation tax and other taxes including social insurance are repayable at various dates over the coming months in accordance with the applicable statutory provisions.
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Charged to profit or loss in year
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances and other timing differences
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Page 9
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Notes to the financial statements
For the year ended 30 June 2023
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Allotted, called up and fully paid
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1,100,001 (2022 - 1,100,001) Ordinary shares of £1.00 each
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Revaluation reserve
Revaluation reserve represents the increase in value of tangible fixed assets during the transition to FRS 102.
Profit and loss account
Includes all current and prior period retained profits and losses.
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Related party transactions
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At the year end there was an amount of £2,161,376 (2022: £1,801,226) was outstanding from Grove Park Limited, a related party due to common control over the entity, with the movement relating to interest incurred in the year. During the year, the Company earned interest income amounting to £95,941 (2022: £59,507).
During the year the Company made a donation of £8,000 (2022: £9,400) to Euro Quality Foundation. One of the directors of Europack Ltd is a trustee of Euro Quality Foundation.
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The ultimate parent Company is Ihsan Holdings Ltd, a company incorporated in the United Kingdom. Ihsan Holdings Ltd is under the control of a director, SM Khalid, and his close family members. Copies of the group finanical statements are available from Ihsan Holdings Ltd, Euro House, Dale Street, Craven Arms, Shropshire, SY7 9PA.
There is no ultimate controlling party.
The smallest and largest group to prepare consolidated financial statements is Ihsan Holdings Limited which are publicly available.
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Events after the financial year end
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There have been no significant events affecting the Company since the year-end.
Page 10
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Notes to the financial statements
For the year ended 30 June 2023
The auditor's report on the financial statements for the year ended 30 June 2023 was unqualified.
The audit report was signed on 15 November 2023 by Jason Crawford (Senior statutory auditor) on behalf of Grant Thornton.
Page 11
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