IRIS Accounts Production v24.3.2.46 09193678 Board of Directors 1.11.22 30.4.24 30.4.24 Medium entities true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary 6.00000 Preference 17.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh091936782022-10-31091936782024-04-30091936782022-11-012024-04-30091936782021-10-31091936782021-11-012022-10-31091936782022-10-3109193678ns14:PoundSterling2022-11-012024-04-3009193678ns10:Director12022-11-012024-04-3009193678ns10:PrivateLimitedCompanyLtd2022-11-012024-04-3009193678ns10:MediumEntities2022-11-012024-04-3009193678ns10:Audited2022-11-012024-04-3009193678ns10:Medium-sizedCompaniesRegimeForDirectorsReport2022-11-012024-04-3009193678ns10:Medium-sizedCompaniesRegimeForAccounts2022-11-012024-04-3009193678ns10:FullAccounts2022-11-012024-04-3009193678ns10:OrdinaryShareClass12022-11-012024-04-3009193678ns10:OrdinaryShareClass22022-11-012024-04-3009193678ns10:Director22022-11-012024-04-3009193678ns10:Director32022-11-012024-04-3009193678ns10:RegisteredOffice2022-11-012024-04-3009193678ns5:CurrentFinancialInstruments2024-04-3009193678ns5:CurrentFinancialInstruments2022-10-3109193678ns5:Non-currentFinancialInstruments2024-04-3009193678ns5:Non-currentFinancialInstruments2022-10-3109193678ns5:ShareCapital2024-04-3009193678ns5:ShareCapital2022-10-3109193678ns5:SharePremium2024-04-3009193678ns5:SharePremium2022-10-3109193678ns5:RetainedEarningsAccumulatedLosses2024-04-3009193678ns5:RetainedEarningsAccumulatedLosses2022-10-3109193678ns5:ShareCapital2021-10-3109193678ns5:RetainedEarningsAccumulatedLosses2021-10-3109193678ns5:SharePremium2021-10-3109193678ns5:ShareCapital2021-11-012022-10-3109193678ns5:SharePremium2021-11-012022-10-3109193678ns5:RetainedEarningsAccumulatedLosses2021-11-012022-10-3109193678ns5:RetainedEarningsAccumulatedLosses2022-11-012024-04-300919367812022-11-012024-04-300919367812021-11-012022-10-310919367812022-11-012024-04-3009193678ns15:UnitedKingdom2022-11-012024-04-3009193678ns15:UnitedKingdom2021-11-012022-10-3109193678ns15:Europe2022-11-012024-04-3009193678ns15:Europe2021-11-012022-10-3109193678ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-11-012024-04-3009193678ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-11-012022-10-3109193678ns5:OwnedAssets2022-11-012024-04-3009193678ns5:OwnedAssets2021-11-012022-10-3109193678ns5:HirePurchaseContracts2022-11-012024-04-3009193678ns5:HirePurchaseContracts2021-11-012022-10-3109193678ns10:OrdinaryShareClass12021-11-012022-10-3109193678ns5:PlantMachinery2022-10-3109193678ns5:FurnitureFittings2022-10-3109193678ns5:MotorVehicles2022-10-3109193678ns5:PlantMachinery2022-11-012024-04-3009193678ns5:FurnitureFittings2022-11-012024-04-3009193678ns5:MotorVehicles2022-11-012024-04-3009193678ns5:PlantMachinery2024-04-3009193678ns5:FurnitureFittings2024-04-3009193678ns5:MotorVehicles2024-04-3009193678ns5:PlantMachinery2022-10-3109193678ns5:FurnitureFittings2022-10-3109193678ns5:MotorVehicles2022-10-3109193678ns5:LeasedAssetsHeldAsLessee2022-11-012024-04-3009193678ns5:WithinOneYearns5:CurrentFinancialInstruments2024-04-3009193678ns5:WithinOneYearns5:CurrentFinancialInstruments2022-10-3109193678ns5:CurrentFinancialInstruments2022-11-012024-04-3009193678ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2024-04-3009193678ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2022-10-3109193678ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-04-3009193678ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-10-3109193678ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2024-04-3009193678ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2022-10-3109193678ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-04-3009193678ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-10-3109193678ns5:HirePurchaseContracts2024-04-3009193678ns5:HirePurchaseContracts2022-10-3109193678ns5:WithinOneYear2024-04-3009193678ns5:WithinOneYear2022-10-3109193678ns5:BetweenOneFiveYears2024-04-3009193678ns5:BetweenOneFiveYears2022-10-3109193678ns5:AllPeriods2024-04-3009193678ns5:AllPeriods2022-10-3109193678ns5:Secured2024-04-3009193678ns5:Secured2022-10-3109193678ns5:DeferredTaxation2022-10-3109193678ns5:DeferredTaxation2022-11-012024-04-3009193678ns5:DeferredTaxation2024-04-3009193678ns10:OrdinaryShareClass12024-04-3009193678ns10:OrdinaryShareClass22024-04-30091936781ns10:Director12022-10-31091936781ns10:Director12021-10-31091936781ns10:Director12022-11-012024-04-30091936781ns10:Director12021-11-012022-10-31091936781ns10:Director12024-04-30091936781ns10:Director12022-10-3109193678ns10:Director222022-10-3109193678ns10:Director222021-10-3109193678ns10:Director222022-11-012024-04-3009193678ns10:Director222021-11-012022-10-3109193678ns10:Director222024-04-3009193678ns10:Director222022-10-31
REGISTERED NUMBER: 09193678












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 NOVEMBER 2022 TO 30 APRIL 2024

FOR

SAV-ECO PACKAGING LTD.

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

CONTENTS OF THE FINANCIAL STATEMENTS
for the period 1 November 2022 to 30 April 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 6

Balance Sheet 7

Statement of Changes in Equity 8

Cash Flow Statement 9

Notes to the Cash Flow Statement 10

Notes to the Financial Statements 11


SAV-ECO PACKAGING LTD.

COMPANY INFORMATION
for the period 1 November 2022 to 30 April 2024







DIRECTORS: Mr S S Dharamshi
Mr F S Dharamshi
Mr A Walji



REGISTERED OFFICE: Unit A Britannia Way
Thurmaston
Leicester
Leicestershire
LE4 8JY



REGISTERED NUMBER: 09193678



AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ



BANKERS: Lloyds Bank PLC
7 High Street
Leicester
LE1 9FS



SOLICITORS: Shakespeare Martineau
Two Colton Square
Leicester
LE1 1QH

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

STRATEGIC REPORT
for the period 1 November 2022 to 30 April 2024


The directors present their strategic report for the period 1 November 2022 to 30 April 2024.

The company's principle activities are the manufacture and supply of paper bags to retail and distribution customers globally.

REVIEW OF BUSINESS
This period has proven to be a stable but tough environment within which the business has had to operate. There have been cost pressures in terms of raw material and utility cost increases - which have been significant, along with severe competition from overseas manufacturers. Due to these factors, we have seen a decline in revenue, and margins have been under pressure. The results of temporary pressures from imports and a weak domestic market have led to a reduction in demand for paper bags. Overall, the Directors are satisfied with the year's performance and have plans for future expansion in the pipeline.

PRINCIPAL RISKS AND UNCERTAINTIES
We are still positive about the future growth of the company and therefore plan to invest in more machinery, increase our product range and move into a substantially larger, purpose-built factory. Our new site will have an improved workflow layout, and we will also be able to generate approximately half of our yearly energy requirements via almost 1500 solar panels on the roof. Our new premises will allow us to consolidate all our operations under one roof and therefore maximise efficiencies within the business with enough capacity to increase our production by almost 300% in the future. Whilst there is still significant competition from overseas manufacturers, we have started to see a decline in imports and improvements in the demand for the products we produce, this is turn means we should be able to scale up and maximise the Company's potential once we are fully operational from our new premises. Paper and other raw material prices are becoming more stable and therefore this will provide a more certain outlook on production costs and the ability to offer a more stable supply to our customers.

KEY PERFORMANCE INDICATORS
The business uses several key performance indicators to monitor and evaluate performance:

2024 2022

Turnover £16,578,641 £20,545,166
EBITDA £(569,897 ) £2,431,452
Net Assets £2,823,483 £4,813,328


ON BEHALF OF THE BOARD:





Mr F S Dharamshi - Director


31 January 2025

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

REPORT OF THE DIRECTORS
for the period 1 November 2022 to 30 April 2024


The directors present their report with the financial statements of the company for the period 1 November 2022 to 30 April 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of the manufacture and supply of paper bags to retail and distribution customers globally.

DIVIDENDS
Dividends of £352,276 have been distributed for the period ended 30 April 2024 (2022 - £737,107).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

Mr S S Dharamshi
Mr F S Dharamshi
Mr A Walji

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr F S Dharamshi - Director


31 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAV-ECO PACKAGING LTD.


Opinion
We have audited the financial statements of Sav-Eco Packaging Ltd. (the 'company') for the period ended 30 April 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its loss for the period 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 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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SAV-ECO PACKAGING LTD.


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

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 a Report of the Auditors 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.

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

Based on our understanding of the company and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK Tax and legislation and breaches of health and safety, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
- Challenging assumptions made by management in their accounting estimates and judgements, such as the recoverability of debtors, useful life of assets and stock valuation; and
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting revenue, and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 forgery or intentional misrepresentation, for example, or through collusion.

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 Report of the Auditors.

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 2006. Our 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 a Report of the Auditors 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.




Luke Turner FCCA FCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

31 January 2025

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

STATEMENT OF COMPREHENSIVE
INCOME
for the period 1 November 2022 to 30 April 2024

Period
1/11/22
to Year Ended
30/4/24 31/10/22
Notes £    £   

TURNOVER 4 16,578,641 20,545,166

Cost of sales (13,973,715 ) (15,575,119 )
GROSS PROFIT 2,604,926 4,970,047

Distribution costs (1,126,031 ) (958,375 )
Administrative expenses (2,414,456 ) (1,842,926 )
(935,561 ) 2,168,746

Other operating income 8,556 44,850
OPERATING (LOSS)/PROFIT 6 (927,005 ) 2,213,596

Interest receivable and similar income 72,493 78,743
(854,512 ) 2,292,339

Interest payable and similar expenses 7 (7,541 ) (522 )
(LOSS)/PROFIT BEFORE TAXATION (862,053 ) 2,291,817

Tax on (loss)/profit 8 225,289 (1,000,805 )
(LOSS)/PROFIT FOR THE FINANCIAL
PERIOD

(636,764

)

1,291,012

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

(636,764

)

1,291,012

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

BALANCE SHEET
30 April 2024

2024 2022
Notes £    £   
FIXED ASSETS
Tangible assets 10 3,500,053 3,485,458

CURRENT ASSETS
Stocks 11 1,141,672 2,293,972
Debtors 12 2,109,750 3,235,287
Cash at bank and in hand 446,246 386,480
3,697,668 5,915,739
CREDITORS
Amounts falling due within one year 13 (3,537,361 ) (4,421,703 )
NET CURRENT ASSETS 160,307 1,494,036
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,660,360

4,979,494

CREDITORS
Amounts falling due after more than one
year

14

(213,514

)

(422,471

)

PROVISIONS FOR LIABILITIES 18 (623,363 ) (744,500 )
NET ASSETS 2,823,483 3,812,523

CAPITAL AND RESERVES
Called up share capital 19 23 23
Share premium 20 1,699,983 1,699,983
Retained earnings 20 1,123,477 2,112,517
SHAREHOLDERS' FUNDS 2,823,483 3,812,523

The financial statements were approved by the Board of Directors and authorised for issue on 31 January 2025 and were signed on its behalf by:





Mr F S Dharamshi - Director


SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

STATEMENT OF CHANGES IN EQUITY
for the period 1 November 2022 to 30 April 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 November 2021 27 1,558,612 2,089,979 3,648,618

Changes in equity
Issue of share capital (4 ) - (389,996 ) (390,000 )
Dividends - (737,107 ) - (737,107 )
Total comprehensive income - 1,291,012 - 1,291,012
Balance at 31 October 2022 23 2,112,517 1,699,983 3,812,523

Changes in equity
Dividends - (352,276 ) - (352,276 )
Total comprehensive income - (636,764 ) - (636,764 )
Balance at 30 April 2024 23 1,123,477 1,699,983 2,823,483

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

CASH FLOW STATEMENT
for the period 1 November 2022 to 30 April 2024

Period
1/11/22
to Year Ended
30/4/24 31/10/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 764,488 1,621,197
Interest element of hire purchase payments
paid

(7,541

)

(522

)
Tax paid (256,204 ) (180,195 )
Net cash from operating activities 500,743 1,440,480

Cash flows from investing activities
Purchase of tangible fixed assets (268,472 ) (433,915 )
Sale of tangible fixed assets - 109,830
Loan to related party 684,530 (1,000,000 )
Interest received 72,493 78,743
Net cash from investing activities 488,551 (1,245,342 )

Cash flows from financing activities
Loan repayments in year (45,144 ) (79,158 )
Capital repayments in year (34,003 ) 88,797
Amount introduced by directors - 289,589
Amount withdrawn by directors (216,000 ) (379,846 )
Share issue - (4 )
Movement in invoice discounting facility (282,105 ) 827,414
Equity dividends paid (352,276 ) (737,107 )
Net cash from financing activities (929,528 ) 9,685

Increase in cash and cash equivalents 59,766 204,823
Cash and cash equivalents at beginning
of period

2

386,480

181,657

Cash and cash equivalents at end of
period

2

446,246

386,480

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE CASH FLOW STATEMENT
for the period 1 November 2022 to 30 April 2024


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
(Loss)/profit before taxation (862,053 ) 2,291,817
Depreciation charges 253,877 164,585
Loss on disposal of fixed assets - 155,281
Government grants - (5,704 )
Finance costs 7,541 522
Finance income (72,493 ) (78,743 )
(673,128 ) 2,527,758
Decrease/(increase) in stocks 1,152,300 (295,539 )
Decrease in trade and other debtors 1,069,654 1,430,064
Decrease in trade and other creditors (784,338 ) (2,041,086 )
Cash generated from operations 764,488 1,621,197

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 30 April 2024
30/4/24 1/11/22
£    £   
Cash and cash equivalents 446,246 386,480
Year ended 31 October 2022
31/10/22 1/11/21
£    £   
Cash and cash equivalents 386,480 181,657


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/11/22 Cash flow At 30/4/24
£    £    £   
Net cash
Cash at bank and in hand 386,480 59,766 446,246
386,480 59,766 446,246
Debt
Finance leases (88,797 ) 34,003 (54,794 )
Debts falling due within 1 year (40,144 ) 30,144 (10,000 )
Debts falling due after 1 year (26,667 ) 15,000 (11,667 )
(155,608 ) 79,147 (76,461 )
Total 230,872 138,913 369,785

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS
for the period 1 November 2022 to 30 April 2024


1. STATUTORY INFORMATION

Sav-Eco Packaging Ltd. is a private limited company, limited by shares, registered in England and Wales. Its registered office address is Unit A Britannia Way, Thurmaston, Leicester, LE4 8JY and the registered number is 09193678.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

These financial statements cover an extended accounting period of 18 months, from 1 November 2022 to 30 April 2024.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipmentStraight line over 5 or 40 years
Fixtures and fittingsStraight line over 3 - 10 years
Motor vehiclesStraight line over 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.


SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


2. ACCOUNTING POLICIES - continued
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.

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.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

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.

Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Cash at bank and in hand
Cash at bank and in hand 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.

Other income
Other income is recognised in the period in which it is due and to the extent the goods have been provided or on completion of the service.

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the director is 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the plant and equipment, and note 2 for the useful economic lives for each class of assets.

(ii) Uplift of closing stock for attributable labour
The closing stock valuation includes an uplift for attributable labour costs. This estimate is assessed annually to reflect the direct percentage of staff time spent on the production process.

4. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
United Kingdom 15,464,039 19,871,708
Europe 1,114,602 673,458
16,578,641 20,545,166

5. EMPLOYEES AND DIRECTORS
Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Wages and salaries 3,978,400 3,839,174
Social security costs 319,250 353,826
Other pension costs 30,642 25,619
4,328,292 4,218,619

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the period was as follows:
Period
1/11/22
to Year Ended
30/4/24 31/10/22

Management 3 3
Administration 14 14
Production 125 147
142 164

Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Directors' remuneration 75,686 271,296

Key management personnel consists of the directors Faizali Dharamshi, Shirazali Dharamshi and Alnoor Walji.

6. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Other operating leases 352,513 233,260
Depreciation - owned assets 253,877 164,585
Loss on disposal of fixed assets - 155,281
Auditors' remuneration 14,000 10,925
Foreign exchange differences 4,196 (1,595 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Hire purchase 7,541 522

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the period was as follows:
Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Current tax:
UK corporation tax (104,051 ) 256,305
Adjustment to prior years (101 ) -
Total current tax (104,152 ) 256,305

Deferred tax (121,137 ) 744,500
Tax on (loss)/profit (225,289 ) 1,000,805

UK corporation tax has been charged at 25% .

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
(Loss)/profit before tax (862,053 ) 2,291,817
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(215,513

)

435,445

Effects of:
Expenses not deductible for tax purposes 4,449 2,103
Capital allowances in excess of depreciation - (72,499 )
Utilisation of tax losses - (138,247 )
Adjustments to tax charge in respect of previous periods (47,083 ) -

Fixed asset loss on disposals - 29,503
Movement in deferred tax charge - 744,500
Changes in tax rates 32,858 -
Total tax (credit)/charge (225,289 ) 1,000,805

The company has tax losses of £445,167 (2022 - £Nil) to offset against future trading profits.

9. DIVIDENDS
Period
1/11/22
to Year Ended
30/4/24 31/10/22
£    £   
Ordinary shares of 6 each
Interim 352,276 737,107

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 November 2022 3,822,392 243,427 82,889 4,148,708
Additions 268,472 - - 268,472
Disposals (71,749 ) (4,643 ) - (76,392 )
At 30 April 2024 4,019,115 238,784 82,889 4,340,788
DEPRECIATION
At 1 November 2022 539,292 122,231 1,727 663,250
Charge for period 182,928 39,866 31,083 253,877
Eliminated on disposal (71,749 ) (4,643 ) - (76,392 )
At 30 April 2024 650,471 157,454 32,810 840,735
NET BOOK VALUE
At 30 April 2024 3,368,644 81,330 50,079 3,500,053
At 31 October 2022 3,283,100 121,196 81,162 3,485,458

The net book value of assets held under hire purchase agreements, included above, are as follows:

20242022
££

Motor vehicles50,07981,162
50,07981,162

The total depreciation charged in respect of these assets was £31,083 (2022 - £1,727).

11. STOCKS
2024 2022
£    £   
Raw materials 1,103,493 2,208,928
Finished goods 38,179 85,044
1,141,672 2,293,972

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2022
£    £   
Trade debtors 1,357,664 2,121,305
Bad debt provision (7,144 ) (3,457 )
Other debtors - 1,100
Amounts owed from related party 315,470 1,000,000
Directors' loan accounts 136,828 337
Tax 130,542 -
Prepayments and accrued income 176,390 116,002
2,109,750 3,235,287

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2022
£    £   
Bank loans and overdrafts (see note 15) 10,000 40,144
Hire purchase contracts (see note 16) 24,559 22,669
Trade creditors 1,637,543 2,095,075
Corporation tax 26,491 256,305
Social security and other taxes 59,146 79,938
VAT 59,612 349,334
Other creditors 1,498,554 1,431,425
Directors' current accounts 140,080 70,080
Accruals 75,672 71,029
Grants 5,704 5,704
3,537,361 4,421,703

Included in other creditors are £750,000 (2022 - £400,000) of related party loans from R Dharamshi, S Dharamshi, S Dharamshi and S Dharamshi for £200,000, £250,000, £200,000 and £100,000 respectively. The loans have no fixed repayment terms and terms are not related to the results of the company. Interest is paid at 10% per annum.

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2022
£    £   
Bank loans (see note 15) 11,667 26,667
Hire purchase contracts (see note 16) 30,235 66,128
Directors' loan accounts - 149,509
Grants 171,612 180,167
213,514 422,471

15. LOANS

An analysis of the maturity of loans is given below:

2024 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 40,144

Amounts falling due between one and two years:
Bank loans - 1-2 years 10,000 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 1,667 16,667

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2022
£    £   
Net obligations repayable:
Within one year 24,559 22,669
Between one and five years 30,235 66,128
54,794 88,797

The hire purchase liabilities are secured on the assets concerned.

Non-cancellable operating leases
2024 2022
£    £   
Within one year 28,568 223,788
Between one and five years 33,653 121,822
62,221 345,610

Operating lease payments represent rentals payable by the company for equipment, land and buildings. Leases are negotiated for an average term of 1-5 years and rentals are fixed during this period.

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2022
£    £   
Bank loans 21,667 66,811
Other creditors 743,004 1,025,109
764,671 1,091,920

Included within other creditors is an amount of £743,004 (2022 - £1,025,109) which is secured. This relates to the invoice discounting facility with Lloyds Bank which is secured against the company's trade debtors.

Included in bank loans is a loan acquired through the Bounce Back Loan Scheme and is guaranteed by the Secretary of State for Business and Industrial Strategy.

18. PROVISIONS FOR LIABILITIES
2024 2022
£    £   
Deferred tax 623,363 744,500

Deferred
tax
£   
Balance at 1 November 2022 744,500
Credit to Statement of Comprehensive Income during period (121,137 )
Balance at 30 April 2024 623,363

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2022
value: £    £   
600 Ordinary 6 6 6
1,700 Preference 17 17 17
23 23

The 2,300 shares in issue are split as follows; 150 Ordinary, 270 Ordinary A, 90 Ordinary B, 90 Ordinary C, 1,200 Preference C and 500 Preference D.

The Ordinary A - C shares have full rights in the company with respect to voting, dividends and distributions.

The Preference C - D shares have rights in the company with respect to dividends but are non-voting.

20. RESERVES

Share premium
The share premium account represents amounts received by the company in excess of share cost price.

Retained earnings
Retained earnings represent accumulated comprehensive income for the year and prior periods less dividends paid.

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £30,642 (2022 - £25,619) were paid in the year in respect of the defined contribution scheme.

22. CAPITAL COMMITMENTS
2024 2022
£    £   
Contracted but not provided for in the
financial statements 17,884 -

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the period ended 30 April 2024 and the year ended 31 October 2022:

2024 2022
£    £   
Mr F S Dharamshi
Balance outstanding at start of period 337 10,000
Amounts advanced 340,000 85,337
Amounts repaid (225,000 ) (95,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period 115,337 337

Mr S S Dharamshi
Balance outstanding at start of period (79,509 ) (189,509 )
Amounts advanced 101,000 110,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period 21,491 (79,509 )

SAV-ECO PACKAGING LTD. (REGISTERED NUMBER: 09193678)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 November 2022 to 30 April 2024


24. RELATED PARTY DISCLOSURES

RFS Holdings Limited, a Company registered in Guernsey is a related party of the Company during the year due to the common directors.

Sav-Eco Packaging Ltd. have a loan of £315,000 owed from RFS Holdings Limited as at the period end 30 April 2024 (2022 - £1,000,000). The loan has no fixed repayment terms. Interest is received at 6% per annum.

Dividends totalling £288,775 (2022 - £662,857) have been paid to directors during the period.

Included within debtors is a balance of £470 (2022 - £Nil) owed from companies under common control.

25. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is S S Dharamshi by virtue of his shareholding.