Company registration number 05616679 (England and Wales)
ARUN TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ARUN TECHNOLOGY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
ARUN TECHNOLOGY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
36,190
30,810
Current assets
Stocks
464,623
335,235
Debtors
5
454,497
180,329
Cash at bank and in hand
689,186
467,010
1,608,306
982,574
Creditors: amounts falling due within one year
6
(1,910,659)
(1,546,899)
Net current liabilities
(302,353)
(564,325)
Total assets less current liabilities
(266,163)
(533,515)
Creditors: amounts falling due after more than one year
7
(518,333)
(528,333)
Net liabilities
(784,496)
(1,061,848)
Capital and reserves
Called up share capital
98,500
98,500
Other reserves
67,607
67,607
Profit and loss reserves
(950,603)
(1,227,955)
Total equity
(784,496)
(1,061,848)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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.
The financial statements were approved by the board of directors and authorised for issue on 1 August 2024 and are signed on its behalf by:
S Han
Director
Company registration number 05616679 (England and Wales)
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
page 2
1
Accounting policies
Company information
ARUN Technology Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 The Brunel Centre, Newton Road, Manor Royal, Crawley, West Sussex, RH10 9TU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the balance sheet date, the company's liabilities exceeded its assets. The company acknowledges the reliance placed on the parent company to support in meeting all liabilities as they fall due. The parent company confirms that it will continue to support ARUN Technology Limited for at least 12 months from the date of signing these accounts.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line over the life of the lease
Plant and machinery
20% straight line
Computer equipment
25% straight line
Certified reference materials
Over the useful life of each metal element between 2-7 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 3
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
The value of WIP and finished goods stock involves an estimation of how much labour and overheads are to be allocated to each item.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
page 4
1.7
Equity instruments
Equity instruments issued by the company are recorded as the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in financial statements.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
The company operates a defined contribution scheme for the benefit of the employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to expenditure on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 5
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock
The value of WIP and finished goods stock involves an estimation of how much labour and overheads are to be allocated to each item.
Certified Reference Materials
Certified reference materials involves an estimation of depreciation over the useful life of the assets.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
7
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 6
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Certified reference materials
Total
£
£
£
£
Cost
At 1 January 2023
37,124
33,477
122,552
193,153
Additions
1,945
22,865
24,810
Disposals
(7,872)
(7,872)
At 31 December 2023
37,124
27,550
145,417
210,091
Depreciation and impairment
At 1 January 2023
36,620
23,095
102,628
162,343
Depreciation charged in the year
232
3,232
15,966
19,430
Eliminated in respect of disposals
(7,872)
(7,872)
At 31 December 2023
36,852
18,455
118,594
173,901
Carrying amount
At 31 December 2023
272
9,095
26,823
36,190
At 31 December 2022
504
10,382
19,924
30,810
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
174,758
112,204
Other debtors
63,314
68,125
238,072
180,329
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
216,425
Total debtors
454,497
180,329
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
page 7
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Amounts owed to group companies
1,764,329
1,410,044
Trade creditors
33,976
38,527
Taxation and social security
9,945
7,407
Deferred income
53,782
62,426
Other creditors
2,030
1,849
Accruals
36,597
16,646
1,910,659
1,546,899
Amounts shown in bank loans and overdrafts relate to a Coronavirus Bounce Back Loan repayable over 6 years. Interest is charged on this loan at 2.5% per annum.
Included within other creditors and accruals is an amount of £1,011 outstanding in respect of employers pension contributions (2022 : £729).
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,333
28,333
Amounts due to group companies
500,000
500,000
518,333
528,333
The balance of £500,000 shown as amounts due to group companies is a loan from the parent company. Interest is charged on this loan at 3.25% per annum. As at 31 December 2022, the parent company waived its right to receive this interest and continues to do so as at 31 December 2023.
The balance of £18,333 (2022: £28,333) shown is a Coronavirus Bounce Back Loan repayable over 6 years. Interest is charged on this loan at 2.5% per annum.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Material Uncertainty Related to Going Concern
During the year ended 31 December 2023, the Company achieved a net profit of £277,352, and as of that date, the Company’s current liabilities exceeded its total assets by £266,163. These events or conditions, along with matters as set forth in Note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. This, together with the support of the parent company has reduced the level of concern we have.
The senior statutory auditor was Darren Harding ACA FCCA DChA
ARUN TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Audit report information
(Continued)
page 8
The auditor was Richard Place Dobson Services Limited
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
369,776
417,562
The current premises lease was agreed and signed 3rd February 2022 and runs to 28th September 2030. After 5 years it is subject to rent review.
10
Parent company
The company is a wholly owned subsidiary of Focused Process Instruments (Hong Kong) Limited, a company incorporated in Hong Kong, whose registered office is Room 1901, 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong.
The company's ultimate parent company is Focus Photonics (Hangzhou) Inc., a company incorporated in China, whose registered office is No. 760 Bin'an Road, Bingjiang District, Hangzhou City.
11
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.