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Registered number: 10185013










MSN LABORATORIES EUROPE LIMITED










FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 MARCH 2024



 
MSN LABORATORIES EUROPE LIMITED
REGISTERED NUMBER: 10185013

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 4 
5,506
4,422

Investments
 5 
434,100
434,100

  
439,606
438,522

Current assets
  

Stocks
 6 
8,400,535
1,667,124

Debtors: amounts falling due within one year
 7 
4,145,476
1,004,564

Cash at bank and in hand
  
480,388
179,218

  
13,026,399
2,850,906

Creditors: amounts falling due within one year
 8 
(11,860,101)
(2,176,790)

Net current assets
  
 
 
1,166,298
 
 
674,116

Total assets less current liabilities
  
1,605,904
1,112,638

  

Net assets
  
1,605,904
1,112,638


Capital and reserves
  

Called up share capital 
 9 
1,250,000
1,250,000

Profit and loss account
  
355,904
(137,362)

  
1,605,904
1,112,638


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 income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 December 2024.



B C Reddy
Director

The notes on pages 2 to 9 form part of these financial statements.

Page 1

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies

 
1.1

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 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.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is a parent qualifies as a small group.  The financial statements present information about the company as an individual entity and not about it's group.

The following principal accounting policies have been applied:

 
1.2

Going concern

As described in Note 11: Auditors information, an adverse opinion was issued in the auditors report as the Company has not recognised the full impairment loss on finished goods and goods for resale and in addition goods in transit.  Had stock been recognised on the balance sheet at the lower of cost or net realisable value then the Company would have recorded a loss for the year of £2,398,729 and had an overdrawn balance sheet of £2,536,091 at 31 March 2024.  The parent company have pledged their continuing financial support to the Company for the forseeable future and as such the directors believe the Company is a going concern.  

 
1.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.  Balances in the financial statements are rounded to the nearest £.

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 2

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)


1.3
Foreign currency translation (continued)


 
1.4

Revenue

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:

Sale of goods

Revenue 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.

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.

 
1.5

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
1.6

Borrowing costs

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

Page 3

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.7

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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
1.8

Taxation

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.

 
1.9

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.

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:

Office equipment
-
33%
straight line

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.

 
1.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 4

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.11

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 weighted average 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.

 
1.12

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.

 
1.13

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.

 
1.14

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.

 
1.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 5

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)


1.15
Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


2.


General information

The Company is a private company, limited by shares and registered in England.                         
Its registered number is: 10185013
Its Registered Office is: 
Invision House
Wilbury Way
Hitchin
Hertfordshire
SG4 0TY
Its Principal Place of Business is:
Devonshire Business Centre
Works Road
Letchworth Garden City
Hertfordshire
SG6 1GJ


3.


Employees

The average monthly number of employees, including directors, during the year was 8 (2023 - 8).

Page 6

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 April 2023
20,828


Additions
5,234


Disposals
(8,423)



At 31 March 2024

17,639



Depreciation


At 1 April 2023
16,406


Charge for the year on owned assets
4,150


Disposals
(8,423)



At 31 March 2024

12,133



Net book value



At 31 March 2024
5,506



At 31 March 2023
4,422


5.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
434,100



At 31 March 2024
434,100




Page 7

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Stocks

2024
2023
£
£

Goods in transit
4,769,235
886,637

Finished goods and goods for resale
3,631,300
780,487

8,400,535
1,667,124


The carrying value of stocks are stated net of impairment losses totalling £1,769,640 (2023 - £56,430). Impairment losses totalling £1,769,640 (2023 - £56,430) were recognised in the profit and loss during the year.


7.


Debtors

2024
2023
£
£


Trade debtors
2,779,347
510,167

Amounts owed by group undertakings
712,143
224,613

Other debtors
1,852
1,852

Prepayments and accrued income
652,134
267,932

4,145,476
1,004,564



8.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
327
-

Trade creditors
452,984
77,660

Amounts owed to group undertakings
10,703,089
1,923,109

Corporation tax
125,886
-

Other taxation and social security
426,717
126,883

Other creditors
13,640
10,305

Accruals and deferred income
137,458
38,833

11,860,101
2,176,790


Page 8

 
MSN LABORATORIES EUROPE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,250,000 (2023 - 1,250,000) Ordinary shares of £1.00 each
1,250,000
1,250,000



10.


Controlling party

The ultimate controlling party of the company is MSN Laboratories Private Limited, whose registered office is MSN House, Plot No. C-24, Industrial Estate, Sanath Nagar, Hyderabad-500018, India. 

The company is exempt from the obligation to prepare and deliver group accounts as it is a small group and it is included in the accounts of a MSN Laboratories Private Limited.


11.


Auditors' information

The auditors' report on the financial statements for the year ended 31 March 2024 contained an adverse opinion.

In their report, within the basis for adverse opinion the auditors emphasised the following matter:

The Company has recognised an impairment loss of £1,769,640 on the value of finished goods and goods for resale at 31 March 2024. Taking into account post year end sales values for the period April 2024 to November 2024 we calculate the net realisable value of the stock in the warehouse to be £2,491,459 lower than cost.  The directors are unwilling to post the additional impairment loss of £721,819.  In addition, the directors have not considered the impairment of the goods in transit at the year end to net realisable value.  Taking into account post year end sales values for the period April 2024 to November 2024 we calculate the net realisable value of the goods in transit to be £2,473,173, an impairment of loss of £2,296,062. In total we believe an additional impairment loss of £3,017,881 should have been recognised in the financial statements for the year ended 31 March 2024 and the closing value of year end stock on the balance sheet should be £5,382,654.  Had the directors been willing to recognise the full impairment loss required then there would be a loss for the year of £2,398,729 and an overdrawn balance sheet at 31 March 2024 of £2,536,091.  We believe this constitutes a material and pervasive misstatement of the financial statements.  
 
The audit report was signed on 10 January 2025 by Martin Van Beek FCCA (Senior statutory auditor) on behalf of Ashleys (Hitchin) Limited.


12.
 

Provisions available for audits of small entities

We have undertaken the audit in accordance with the requirements of Financial Reporting Council's Ethical Standards, including "FRC Ethical Standard - Provisions Available for Audits of Small Entities (PAASE)".  In common with many other businessess of this size and nature, the Company uses our firm to prepare and submit tax returns and assist with the preparation of financial statements.  

 
Page 9