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Registered number: 00427594










RAYMOND (EUROPE) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
RAYMOND (EUROPE) LIMITED
 
 
COMPANY INFORMATION


Directors
G. H. Singhania 
M. Mishra 




Company secretary
M. Mishra



Registered number
00427594



Registered office
Barratt House
341-349 Oxford Street

London

United Kingdom

W1C 2JE




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
RAYMOND (EUROPE) LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
11
Notes to the financial statements
12 - 22

 
RAYMOND (EUROPE) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their Annual Report, together with the financial statements and auditor's report of Raymond (Europe) Limited, (the "Company") for the year ended 31 December 2023.

Business review
 
During the year the Company sought to position itself for future growth opportunities for longer term value for the shareholders.
Long term relationships with major customers remain strong and this allied to further enhancements should help the Company achieve its desired returns.
The directors consider that the results for the year and the state of the Company's affairs at the year end, as shown in the financial statements, to be satisfactory.

Principal risks and uncertainties
 
Post Covid Impact
Post covid we had exceptional demand in 2022 but  in 2023 market has stabilised and demand is not as good as 2022, however with gaining of new customers and more business with the existing ones we see a consistent business growth in coming years.  
Foreign exchange risk
Foreign currency risk exposures arises primarily from trade receivables, trade payables and intercompany loans denominated in Euros and US Dollars.
Trade receivables
Trade receivables are managed in respect of credit and cash flow risk by regular review of customers' credit rating, continual communication with customers and regular monitoring of amounts outstanding and the age of debt.
Trade payables
Trade payables liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Inflation
High inflation in the economy puts a pressure on demand for our goods and our colleagues' economic security. We are mitigating this risk by monitoring customer demand closely and adapting our buying and marketing strategies accordingly. For colleagues, the introduction of Real Living Wage - an effective 12% pay rise for sales assistants is helping with the cost of living crisis. We continue to monitor this closely and keep an open dialogue with our teams.
Financial risks
The company’s financial instruments comprise bank balances, trade creditors and trade debtors.
Liquidity risk is managed by maintaining sufficient cash balances.
Credit risk is managed by closely monitoring customers’ outstanding amounts.
Interest rate risk is managed by holding minimal debt relative to the company’s turnover and profit.

Page 1

 
RAYMOND (EUROPE) LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The directors use a number of key performance indicators to assess business performance. Principal amongst these are turnover, gross profit margin, operating profit and net assets which are reported in the audited financial statements.
The key performance indicators of the company are turnover and gross profit margin. A brief analysis of these is shown below:
           
2023      2022   Variance 
                   £               £                       %
 Turnover       21,435,499           17,416,755                      23.1
 Gross profit margin                 8.4%                    10.5%

The gross profit margin has reduced due to increase on raw material costs leading to this reduction.

 

This report was approved by the board and signed on its behalf.


................................................
M. Mishra
Director

Date: 30 August 2024
Page 2

 
RAYMOND (EUROPE) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Principal activity

The principal activity of the company was sale of wholesale clothing.

Directors

The directors who served during the year were:

G. H. Singhania 
M. Mishra 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Future developments

After the epidemic of Coronavirus in the U.K. and around the world was over demand from all the customers had gone very high, we had a good run from October 2021 till Mid 2023, however on the second half of 2023 demand started to slow down and we reckon that new demand standard will settle down by first quarter of 2024. We believe that the company is in good financial position to weather the impact of this slowdown and at present this situation casts no doubt on the company’s going concern.

Results and dividends

The profit for the year, after taxation, amounted to £63,328 (2022 - loss £12,366).
There were no dividends distributed in the current or prior year.

Page 3

 
RAYMOND (EUROPE) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Simmons Gainsford LLP, the previous auditors, have transferred their audit business to Sumer Auditco Limited who will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

This report was approved by the boar and signed on its behalf.
 




................................................
M. Mishra
Director

Date: 30 August 2024
Page 4

 
RAYMOND (EUROPE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAYMOND (EUROPE) LIMITED
 

Opinion


We have audited the financial statements of Raymond (Europe) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
RAYMOND (EUROPE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAYMOND (EUROPE) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' responsibilities statement set out on page 3, 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.


Page 6

 
RAYMOND (EUROPE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAYMOND (EUROPE) LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:
• the results of our enquiries of management and those charged with governance of their assessment of         the risks of fraud and irregularities;
• the nature of the company, including its management structure and control systems (including the      opportunity for management to override such controls); and
• the industry and environment in which it operates.
We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006.
Based on this understanding we identified the following matters as being of significance to the entity:
• laws and regulations considered to have a direct effect on the financial statements including UK financial   reporting standards, Company Law, tax and pension legislation and distributable profits legislation;
• the timing of the recognition of commercial income;
• compliance with legislation relating to health and safety and local employment law.
• management bias in selecting accounting policies and determining estimates;
• inappropriate journal entries;
• recoverability of debtors; and
• the requirement to impair stock and the amount of any such impairment.
We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
• enquiries of management and those charged with governance as to whether the entity complies   
with such laws and regulations;
• enquiries with the same concerning any actual or potential litigation or claims;
• discussion with the same regarding any known or suspected instances of non-compliance with laws and   regulation and fraud;
• assessment of matters reported to management and the result of the subsequent investigation;   
• obtaining an understanding of the relevant controls during the period;
• identifying and testing journal entries, in particular any journal entries posted with unusual account                                                     combinations or crediting revenue or cash         
• accessing the recovery of debtors in the period since the balance sheet date and challenging      
Page 7

 
RAYMOND (EUROPE) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RAYMOND (EUROPE) LIMITED (CONTINUED)


 assumptions made by management regarding the recovery of balances which remain outstanding;
• reviewing the financial statements for compliance with the relevant disclosure requirements;
• performing analytical procedures to identify any unusual or unexpected relationships or unexpected   movements in account balances which may be indicative of fraud;
• reviewing correspondence with HMRC; and
• evaluating the underlying business reasons for any unusual transactions;
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Atulya Mehta FCCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

30 August 2024
Page 8

 
RAYMOND (EUROPE) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
21,435,499
17,416,755

Cost of sales
  
(19,635,762)
(15,583,089)

Gross profit
  
1,799,737
1,833,666

Distribution costs
  
(586,917)
(794,122)

Administrative expenses
  
(1,042,513)
(988,171)

Other operating income
  
-
10,500

Operating profit
 5 
170,307
61,873

Interest receivable and similar income
  
48
4

Interest payable and similar expenses
  
(86,211)
(82,539)

Profit/(loss) before tax
  
84,144
(20,662)

Tax on profit/(loss)
 9 
(20,816)
8,296

Profit/(loss) for the year
  
63,328
(12,366)
There was no other comprehensive income for 2023 (2022:£NIL).

Page 9

 
RAYMOND (EUROPE) LIMITED
REGISTERED NUMBER: 00427594

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Current assets
  

Stocks
 11 
2,583,553
3,124,630

Debtors: amounts falling due after more than one year
 12 
24,712
53,634

Debtors: amounts falling due within one year
 12 
5,205,244
5,457,981

Cash at bank and in hand
 13 
780,894
1,350,503

  
8,594,403
9,986,748

Creditors: amounts falling due within one year
 14 
(7,034,169)
(8,539,342)

Net current assets
  
 
 
1,560,234
 
 
1,447,406

Total assets less current liabilities
  
1,560,234
1,447,406

Creditors: amounts falling due after more than one year
 15 
(933,673)
(884,173)

  

Net assets
  
626,561
563,233


Capital and reserves
  

Called up share capital 
  
1,000
1,000

Profit and loss account
  
625,561
562,233

  
626,561
563,233


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
M. Mishra
Director

Date: 30 August 2024

Page 10

 
RAYMOND (EUROPE) LIMITED
REGISTERED NUMBER: 00427594

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,000
574,599
575,599


Comprehensive income for the year

Loss for the year
-
(12,366)
(12,366)



At 1 January 2023
1,000
562,233
563,233


Comprehensive income for the year

Profit for the year
-
63,328
63,328


At 31 December 2023
1,000
625,561
626,561


The notes on pages 12 to 22 form part of these financial statements.

Page 11

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Raymond (Europe) Limited is a private company limited by share capital, incorporated in England and Wales, registered number 00427594. The address of the registered office is Barratt House, 341-349 Oxford Street, London, W1C 2JE.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Raymond Limited as at 31 March 2024 and these financial statements may be obtained from Plot No. 156, No. 2, Village Zadagon, Ratnagiri 415612, (Maharashtra), India.

Page 12

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Turnover

Turnover 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. Turnover 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:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Commission income is recognised only when the customer has paid for the goods supplied and the cash is received.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 13

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions 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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.10

Tangible fixed assets

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.

Page 14

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

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:

Motor vehicles
-
6 years
Fixtures, fittings and equipment
-
4-10 years

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.

 
2.11

Stocks

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 balance sheet 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.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Clothing wholesale
19,867,674
16,318,903

Commissions receivable
1,567,825
1,097,852

21,435,499
17,416,755


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
14,535,513
13,275,104

Rest of Europe
2,130,846
1,452,376

Rest of the world
4,769,140
2,689,275

21,435,499
17,416,755


Page 16

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
113,266
85,678

Operating lease rentals
163,807
159,384


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,000
17,600


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
315,467
294,458

Social security costs
24,748
33,887

Cost of defined contribution scheme
3,993
3,551

344,208
331,896


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
1
1



Marketing
1
1



Administrative
6
6

8
8

Page 17

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
125,000
118,750


The highest paid director received remuneration of £125,000 (2022 - £118,750).


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
3,531
-


Deferred tax


Origination and reversal of timing differences
17,285
(8,296)

Total deferred tax
17,285
(8,296)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the apportioned standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
84,144
(20,662)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
19,774
(3,925)

Effects of:


Expenses adjustment
-
(222)

Capital allowances for year in excess of depreciation
-
(1,445)

Utilisation of tax losses
(16,243)
-

Deferred tax
17,285
(8,296)

Fixed asset profit on disposal
-
(1,995)

Unrelieved tax losses carried forward
-
7,587

Total tax charge for the year
20,816
(8,296)

Page 18

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Fixtures, fittings & equipment

£



Cost or valuation


At 1 January 2023
98,176



At 31 December 2023

98,176



Depreciation


At 1 January 2023
98,176



At 31 December 2023

98,176



Net book value



At 31 December 2023
-



At 31 December 2022
-


11.


Stocks

2023
2022
£
£

Raw materials and consumables
434,274
740,518

Finished goods and goods for resale
2,149,279
2,384,112

2,583,553
3,124,630


Page 19

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£

Due after more than one year

Trade debtors
-
28,922

Other debtors
24,712
24,712

24,712
53,634


2023
2022
£
£

Due within one year

Trade debtors
4,781,112
4,575,788

Other debtors
259,699
364,391

Prepayments and accrued income
164,433
500,517

Deferred taxation
-
17,285

5,205,244
5,457,981



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
780,894
1,350,503

Less: bank overdrafts
(81,126)
(55,065)

699,768
1,295,438


Page 20

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
81,126
55,065

Trade creditors
5,208,062
6,143,248

Amounts owed to group undertakings
221,264
107,674

Corporation tax
3,583
52

Other taxation and social security
276,318
890,796

Other creditors
82,956
29,996

Accruals and deferred income
1,160,860
1,312,511

7,034,169
8,539,342


The bank overdraft of £81,126 (2022: £55,065) is secured by way of floating charge over the assets of the Company. 


15.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Amounts owed to group undertakings
933,673
884,173



16.


Deferred taxation




2023
2022


£

£






At beginning of year
17,285
8,989


Charged to profit or loss
(17,285)
8,296



At end of year
-
17,285

The deferred tax asset is made up as follows:

2023
2022
£
£


Tax losses carried forward
-
17,285

-
17,285

Page 21

 
RAYMOND (EUROPE) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £3,993 (2022 - £3,551). Contributions totalling £nil (2022 - £8) were payable to the fund at the balance sheet date and are included in creditors.


18.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
108,150
103,644

Later than 1 year and not later than 5 years
432,600
432,600

Later than 5 years
252,350
360,500

793,100
896,744


19.


Related party transactions

The company has taken advantage of the exemptions available in Financial Reporting Standard 102, whereby it has not disclosed transactions with the immediate parent company or any wholly owned subsidiary undertaking of the group.
Included in other debtors there is the amount of £1,064 (2022: £1,064) which directors owe to the company.


20.


Controlling party

The company regards Raymond Limited, a company incorporated in India, as its immediate and ultimate parent undertaking for the current and preceding year. The financial statement in which the results of the company are consolidated are available to the public at the following address:
Plot No. 156
H. No. 2
Village Zadgaon
Ratnagiri 415612
(Maharashtra)
India

 
Page 22