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Registered number: 12140170









TUFAIL CHEMICALS UK LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 30 JUNE 2024

 
TUFAIL CHEMICALS UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their strategic report for the period ended 30 June 2024.

Business review
 
The main activities of the business were sale of industrial chemicals. The directors are pleased to report on a successful year despite current economic uncertainty. 
The company achieved turnover of £4.3m (2023: £4.6m) during the year. The future outlook is positive for industrial and cleaning chemicals. The directors are confident that the company will continue to grow and further increase its turnover.

Principal risks and uncertainties
 
Economic risk
The current economic uncertainty has not had a material impact on the company’s business. The company sells industrial chemicals which are used in cleaning products and has noticed an increase in demand for its products since COVID-19 pandemic. The company does not have any significant fixed cost and has the ability to cut its variable cost in the unlikely event of falling demand for its product.
Credit risk
Customers usually pay a percentage of order in advance and the balance is paid on receipt of goods. The credit risk is managed via use of letter of credit which ensures that funds are released to company’s bank upon receipt of goods.

Financial key performance indicators
 
The management uses following key performance indicators to track performance of the company:
1. Turnover growth
2. Gross profit margin
3. Earning before interest, tax, depreciation and amortisation (EBITDA).
During the period, the company achieved GP margin of 3% (2023: 7.6%) and EBITDA of £24k (2023: £197k).


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



................................................
Yasin Altaf
Director

Date: 27 January 2025

Page 1

 
TUFAIL CHEMICALS UK LIMITED
REGISTERED NUMBER: 12140170

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 4 
258
499

  
258
499

Current assets
  

Stocks
 5 
-
268,603

Debtors: amounts falling due within one year
 6 
478,526
731,070

Cash at bank and in hand
 7 
134,963
262,216

  
613,489
1,261,889

Creditors: amounts falling due within one year
 8 
(435,134)
(1,253,881)

Net current assets
  
 
 
178,355
 
 
8,008

Total assets less current liabilities
  
178,613
8,507

  

Net assets
  
178,613
8,507


Capital and reserves
  

Called up share capital 
 9 
100
100

Other reserves
  
150,000
-

Profit and loss account
  
28,513
8,407

  
178,613
8,507


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

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




................................................
Parvez Tanveer Tufail
................................................
Yasin Altaf
Director
Director


Date: 27 January 2025
Date:27 January 2025
Page 2

 
TUFAIL CHEMICALS UK LIMITED
REGISTERED NUMBER: 12140170
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024


The notes on pages 8 to 16 form part of these financial statements.

Page 3

 
TUFAIL CHEMICALS UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 July 2023
100
-
8,407
8,507


Comprehensive income for the year

Profit for the year

-
-
20,106
20,106


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
20,106
20,106


Contributions by and distributions to owners

Other movement type 1
-
150,000
-
150,000


Total transactions with owners
-
150,000
-
150,000


At 30 June 2024
100
150,000
28,513
178,613


The notes on pages 8 to 16 form part of these financial statements.

Page 4

 
TUFAIL CHEMICALS UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
100
(187,078)
(186,978)


Comprehensive income for the year

Profit for the year

-
195,485
195,485


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
195,485
195,485


Total transactions with owners
-
-
-


At 30 June 2023
100
8,407
8,507


The notes on pages 8 to 16 form part of these financial statements.

Page 5

 
TUFAIL CHEMICALS UK LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
26,421
197,340

Adjustments for:

Depreciation of tangible assets
240
240

Interest paid
-
51

Decrease in stocks
268,603
406,737

Decrease/(increase) in debtors
56,575
(200,787)

Decrease/(increase) in amounts owed by groups
195,969
(298,104)

(Decrease)/increase in creditors
(440,499)
112,226

(Decrease)/increase in amounts owed to groups
(217,378)
334,925

Corporation tax (paid)/received
(2,430)
-

Loan transferred to equity
150,000
-

Net cash generated from operating activities

37,501
552,628



Cash flows from financing activities

Interest paid
-
(51)

Net cash used in financing activities
-
(51)

Net increase in cash and cash equivalents
37,501
552,577

Cash and cash equivalents at beginning of year
97,462
(455,115)

Cash and cash equivalents at the end of year
134,963
97,462


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
134,963
262,216

Bank overdrafts
-
(164,754)

134,963
97,462


The notes on pages 8 to 16 form part of these financial statements.

Page 6

 
TUFAIL CHEMICALS UK LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

262,216

(127,253)

134,963

Bank overdrafts

(164,754)

164,754

-

Debt due within 1 year

(393,225)

377,157

(16,068)


(295,763)
414,658
118,895

The notes on pages 8 to 16 form part of these financial statements.

Page 7

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

The entity is a private company limited by shares and incorporated in England & Wales. The company’s
registered office and registration number are on company information page.

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.

The following principal accounting policies have been applied:

 
2.2

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.

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 Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 8

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

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.

 
2.4

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.

 
2.5

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.

 
2.6

Borrowing costs

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

Page 9

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.7

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.

 
2.8

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.


 
2.9

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
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 10

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

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 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.

 
2.11

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.

 
2.12

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

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 11

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Employees

2024
2023
£
£

Wages and salaries
46,859
95,420

Social security costs
5,472
11,770

Cost of defined contribution scheme
208
-

52,539
107,190


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


        2024
        2023
            No.
            No.







Management
2
2


4.


Tangible fixed assets





Office equipment

£



Cost or valuation


At 1 July 2023
1,299



At 30 June 2024

1,299



Depreciation


At 1 July 2023
800


Charge for the year on owned assets
241



At 30 June 2024

1,041



Net book value



At 30 June 2024
258



At 30 June 2023
499

Page 12

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


Stocks

2024
2023
£
£

Goods in transit
-
268,603

-
268,603



6.


Debtors

2024
2023
£
£


Trade debtors
103,535
190,584

Amounts owed by group undertakings
330,000
525,969

Other debtors
31,791
1,239

Prepayments and accrued income
13,200
13,278

478,526
731,070



7.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
134,963
262,216

Less: bank overdrafts
-
(164,754)

134,963
97,462


Page 13

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
-
164,754

Trade creditors
41,813
3,917

Amounts owed to group undertakings
285,531
502,909

Corporation tax
5,740
1,855

Other taxation and social security
801
4,834

Other creditors
96,549
463,860

Accruals and deferred income
4,700
111,752

435,134
1,253,881


The following liabilities were secured:




Details of security provided:

The loan is secured by HBL Bank UK Limited by way of fixed and floating charge on all the property or undertaking of the company. The charge contains negative pledge.
Tufail Chemical Industries Limited i.e., the parent Company has provided letter of comfort to the bankers of the company as security whereby the parent company confirms, agrees, and undertakes that it will ensure and/or procure that all the terms of, and the liabilities of the company arising under current and future financing facilities are met in full.


9.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.0 each
100
100



10.


Reserves

Other reserves

During the year, the company reclassified a £150,000 amount previously recognised as a loan from the parent company to equity, following confirmation from the parent company that the amount represents a permanent capital contribution for the initial set-up of the business. This reclassification reflects the substance of the transaction and aligns with the parent company’s intention not to demand repayment.

Page 14

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Contingent liabilities

The total contingent liabilities at 30 June 2024 amount to USD 895,650 (GBP 708,024). These commitments represent the company’s obligations to pay its suppliers upon fulfilment of the conditions specified in the LCs, including the delivery of goods and presentation of compliant documentation.


12.


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 £208 (2023: £Nil). Contributions totalling £199 (2023: £Nil) were payable to the fund at the reporting date and are included in creditors.


13.


Related party transactions

The company is a wholly owned subsidiary of Tufail Multichem Holdings (Pvt) Limited (TMCHL).
At the year end, the following balances were outstanding with related parties:
Parent company (TMCHL):
The company owed £178,268 to its parent company.
The parent company owed £205,000 to the company.
Tufail MultiChemical Industries Ltd (TMCL) (connected company): 
The company owed £103,911 to TMCL.
TMCL owed £125,000 to the company in respect of commission charged during the year.
Tufail Chemical Industries Ltd (TCIL) (connected company): 
The company owed £3,352 to TCIL.
Directors:
The company owed a balance of £15,869 to one of its directors.
One of the company's director owed £13,200 to the company.
All balances are unsecured, repayable on demand, and non-interest bearing.
During the year, the company charged commission of £125,000 to TMCL.


14.


Controlling party

The company is under the control of Tufail Multichem Holdings (Pvt) Limited, a company incorporated in Pakistan. The parent company owns 100% of the issued share capital in the company.

Page 15

 
TUFAIL CHEMICALS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Auditors' information

The auditors' report on the financial statements for the year ended 30 June 2024 was unqualified.

The audit report was signed on 27 January 2025 by R M Asif Rafique (Senior Statutory Auditor) on behalf of Accendo Consulting Ltd.

 
Page 16