Company registration number 04304063 (England and Wales)
RAW2K LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
RAW2K LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr A Chaudhari
(Appointed 18 January 2024)
Mr S Goyal
(Appointed 18 January 2024)
Company number
04304063
Registered office
Grove House 1st Floor
55 Lowlands Road, Harrow, England
HA1 3AW
Auditor
King & King Chartered Accountants
Chartered Accountants & Statutory Auditors
5th Floor, Watson House
54-60 Baker Street
London
W1U 7BU
RAW2K LIMITED
CONTENTS
Page
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Notes to the financial statements
11 - 15
RAW2K LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company was the auction of used motor vehicles.
Business Review
The company was acquired by Greta Investments Limited Group on 18th January 2024 through Ernst & Young LLP, Administrators of Recycling Lives Limited, who were previously the controlling parent of the company. The staff and management of the previous company were not available to provide information and answers to the auditors for financial year 1 March 2022 to 28 February 2023. Therefore, these financial statements represents the company's financial position and results under the previous management.
Current management has considered the recoverability of debt owed to the company by previous group companies and have written off £ 6,877,468 which was considered irrecoverable. As a result of this write off, the operating results and financial position of the company as at financial period ended 28th February, 2023 have been significantly impacted.
Post acquisition,the current management is in the the process of consolidating the business processes of the company by harnessing the synergies from wider business operations of the Greta Investments Limited Group and Ardour World Holdings Limited Group. The current Management is optimistic about the future operations, growth and profitability of the company and are committed to providing financial support to the company through wider Greta Investments Limited Group companies. See further details under the Going Concern paragraph.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Chaudhari
(Appointed 18 January 2024)
Mr S Goyal
(Appointed 18 January 2024)
Mr Christopher James Chambers
(Resigned 22 December 2023)
Mr Andrew Hodgson
(Appointed 17 October 2023 and resigned 18 January 2024)
Mr Etsko Loek De Boer
(Appointed 11 January 2024 and resigned 18 January 2024)
Mr Garry Marshall
(Resigned 17 October 2023)
Mr G Chaudhary
(Appointed 18 January 2024 and resigned 18 January 2024)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
King & King Chartered Accountants were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
RAW2K LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
Going concern
The directors have prepared detailed future forecasts which cover a period of at least twelve months from the date of approval of the financial statements containing what is considered to be a prudent scenario. The forecasts take into account challenging market conditions due to events that have occurred around the world and various cost saving measures / initiatives we have and continue to put in place to improve the profitability of the business. These forecasts show positive results and cash generation.
An assessment is made of the cashflows of the wider Greta Investments Limited Group, which the Company is a member of since its takeover on 18 January 2024, as cash is managed by centralised treasury function who ensure all parts of the group have sufficient cash to meet their immediate needs.
The Directors have considered the Group banking facilities and they believe that the Company is able to continue in operational existence for the foreseeable future and meet all liabilities as they fall due for payment. Cash levels remain within acceptable parameters throughout the forecast period and give sufficient headroom.
The wider Group, which the company is part of, has long established relationships with a number of customers and suppliers across different geographic areas and industries, and despite the short term challenges in market conditions the Directors believe that the cost saving measures / initiatives and the existing banking facilities of the Group is well placed to manage its business risks successfully.
Taking all of the above into consideration, the Directors continue to adopt the going concern basis in preparing the company's financial statements and do not consider there to be any material uncertainties arising.
Revenue and other creditors
The company maintains a release note database for the vehicles which are auctioned through the company. The release note database could not be fully reconciled with the revenue recognised in the nominal ledger to ascertain completeness of revenue. Further, auditors noted errors in posting revenue in the nominal ledger which were rectified. However, the management could not ascertain with reasonable certainty that all such errors were identified.
The balances included in other creditors £675,169 (2022 : £393,944) consists of the purchase control account being amounts owed to supplier of the vehicle and sales control account being amounts due from buyer towards the vehicle which have built up over the years. These control accounts could not be reconciled and matched off so that management are aware of the remaining balance outstanding.
The current management bought this business from administrators on 18 January 2024. The old management and staff who were involved in the running of day to day business are not available for assistance to investigate the aforesaid balances further.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr A Chaudhari
Director
29 October 2024
RAW2K LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
The directors are responsible 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 then apply them consistently;
make judgements 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 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.
RAW2K LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAW2K LIMITED
- 5 -
We have audited the financial statements of RAW2K Limited (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its loss 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 qualified opinion
The balances included in other creditors £675,169 (2022 : £393,944) consists of the purchase control account being amounts owed to supplier of the vehicle and sales control account being amounts due from buyer towards the vehicle which have built up over the years. These control accounts could not be reconciled and matched off so that management are aware of the balance outstanding. We were unable to obtain sufficient appropriate audit evidence to ensure existence and completeness of these balances.
We could not obtain sufficient appropriate audit evidence, to ascertain existence and completeness of revenue. Our audit procedures revealed understatement of revenue by £158,442 which was adjusted in the financial statement. However, we were unable to quantify the completeness of such understatement ourselves by alternative means or by using other audit procedures. Consequently, we were unable to determine whether any further adjustment to revenue was necessary.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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.
RAW2K LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAW2K LIMITED (CONTINUED)
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.
As described in the Basis for qualified opinion section of our report, our audit opinion is qualified for non availability of sufficient audit evidence regarding other creditors and revenue.
Opinions on other matters prescribed by the Companies Act 2006
Except for the matter described in the Basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to other creditors and revenue, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
Except for the matter described in the Basis for qualified opinion section of our report, 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 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
RAW2K LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAW2K LIMITED (CONTINUED)
- 7 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding and accumulated knowledge of the Company, and the sector in which it operates, we consider the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. We considered the significant laws and regulations to be United Kingdom Generally Accepted Accounting Practice and the UK Companies Act 2006. All audit team members were briefed to ensure they were aware of any relevant regulations in relation to their work, areas of potential non-compliance and fraud risks.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of an override of controls), and determined that the principal risks were related to posting inappropriate journal entries and improper revenue recognition.
Our audit procedures in response to the above included, but were not limited to:
Agreement of the financial statement disclosures to underlying supporting documentation;
Challenging whether there were any significant accounting estimates for which assumptions or judgements were made by management;
Procedures to test revenue including agreement of revenue recognised to supporting documentation on a sample basis and testing revenue recorded around the year end to check appropriate year end cut-off;
Identifying and testing journal entries identified as potentially unusual. This testing included, but was not limited to, any journal entries posted with specific keywords, manual journals to revenue and cash, journals posted by unexpected users, journals posted at unexpected times, and journals posted to least used accounts;
Discussions with management, and those charged with governance, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;
Enquiries to confirm with management that there was no legal correspondence during the period, or post year end, requiring review; and
Obtaining an understanding of the control environment used in monitoring compliance with laws and regulations.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
RAW2K LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAW2K LIMITED (CONTINUED)
- 8 -
Diwakar Kafle
Senior Statutory Auditor
For and on behalf of King & King Chartered Accountants
29 October 2024
5th Floor, Watson House
54-60 Baker Street
London
W1U 7BU
RAW2K LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
1,793,019
1,497,739
Administrative expenses
(777,237)
(660,790)
Amounts due from group undertaking written off
3
(6,877,468)
(Loss)/profit before taxation
(5,861,686)
836,949
Tax on (loss)/profit
(192,871)
(Loss)/profit for the financial year
(6,054,557)
836,949
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RAW2K LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 10 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
5
627,493
5,421,761
Cash at bank and in hand
226,543
274,638
854,036
5,696,399
Creditors: amounts falling due within one year
6
(3,119,137)
(1,906,943)
Net current (liabilities)/assets
(2,265,101)
3,789,456
Provisions for liabilities
480
480
Net (liabilities)/assets
(2,264,621)
3,789,936
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
(2,264,721)
3,789,836
Total equity
(2,264,621)
3,789,936
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr A Chaudhari
Director
Company registration number 04304063 (England and Wales)
RAW2K LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
1
Accounting policies
Company information
RAW2K Limited is a private company limited by shares incorporated in England and Wales. The registered office is Grove House 1st Floor, 55 Lowlands Road, Harrow, England, HA1 3AW.
The nature of the Company's operations and its principal activities are set out in the Directors' Report.
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
The directors have prepared detailed future forecasts which cover a period of at least twelve months from the date of approval of the financial statements containing what is considered to be a prudent scenario. The forecasts take into account challenging market conditions due to events that have occurred around the world and various cost saving measures / initiatives we have and continue to put in place to improve the profitability of the business. These forecasts show positive results and cash generation. true
An assessment is made of the cashflows of the wider Greta Investments Limited Group, which the Company is a member of since its takeover on 18 January 2024, as cash is managed by centralised treasury function who ensure all parts of the group have sufficient cash to meet their immediate needs.
The Directors have considered the Group banking facilities and they believe that the Company is able to continue in operational existence for the foreseeable future and meet all liabilities as they fall due for payment. Cash levels remain within acceptable parameters throughout the forecast period and give sufficient headroom.
The wider Group, which the company is part of, has long established relationships with a number of customers and suppliers across different geographic areas and industries, and despite the short term challenges in market conditions the Directors believe that the cost saving measures / initiatives and the existing banking facilities of the Group is well placed to manage its business risks successfully.
Taking all of the above into consideration, the Directors continue to adopt the going concern basis in preparing the company's financial statements and do not consider there to be any material uncertainties arising.
1.3
Turnover
Turnover represents net invoiced sales for the commission on auction sales of automobiles exclusive of the value added tax. The sales value of the vehicles being sold is not included in turnover as the Company is acting as an agent not a principal.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
RAW2K LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 12 -
1.5
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 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.
The company's cash at bank and in hand and trade and other debtors and its trade and other creditors and bank overdrafts are measured initially at the transaction price, including transaction costs, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
If a transaction constitutes a financing transaction it is measured at the present value of the future payments discounted at a market rate of interest, except where loans are received from a person who is within a Director's group of close family members and that group contains a shareholder of the Company, then these are initially recorded at transaction price, and subsequently at amortised cost using the interest rate implicit in the contract.
1.6
Equity instruments
Equity instruments issued by the company are recorded at 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.
1.7
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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
RAW2K LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank overdrafts, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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.
3
Exceptional item
2023
2022
£
£
Expenditure
Amounts due from group undertakings - written off
6,877,468
-
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
10
10
RAW2K LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
275,423
251,037
Amounts owed by group undertakings
310,000
5,132,703
Prepayments and accrued income
42,070
38,021
627,493
5,421,761
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,942,829
1,366,854
Amounts owed to group undertakings
215,000
Corporation tax
192,871
Other taxation and social security
52,911
39,689
Other creditors
715,526
500,400
3,119,137
1,906,943
The balances included in other creditors £675,169 (2022 : £393,944) consists of the purchase control account being amounts owed to supplier of the vehicle and sales control account being amounts due from buyer towards the vehicle.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
RAW2K LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
8
Ultimate parent undertaking and controlling party
As at the Balance Sheet date the immediate parent undertaking of the company was Recycling Lives Limited, intermediate parent undertaking was Recycling lives Holdings Limited, both of these companies were registered in England and Wales and had registered office at Recycling Lives Centre, 1a Essex Street, Preston PR1 1QE.
As at the balance sheet date the ultimate controlling party was Three Hills Capital Partners SA, a company registered in Luxembourg.
Recycling lives Limited has appointed administrators Ernst & Young LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX on 18th January 2024.
Recycling Lives Holdings Limited has appointed Mr Derek Neil Hyslop and Mr Trevor Oates of Ernst & Young LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX as liquidators in Creditors voluntary liquidation on 2nd July 2024.
TH Frag Bidco Limited has appointed Mr Derek Neil Hyslop and Mr Trevor Oates of Ernst & Young LLP, Atria One, 144 Morrison Street, Edinburgh EH3 8EX as liquidators in Creditors voluntary liquidation on 18th July 2024.
Since all parent undertakings as at the Balance sheet date are either under administration or liquidation the consolidated financial statements in which the results of the company are consolidated are not available.
The company was acquired by Global Ardour Recycling Limited on 18th January 2024 from the administrator of Recycling Lives Limited. From this day forward the ultimate parent undertaking of the company was Greta Investments Limited, a company registered in England & Wales.
9
Related party transactions
The company has taken advantage of the available exemption conferred by Section 1AC.35 of FRS102 not to disclose transactions with wholly owned members of the Group.
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