REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 March 2024 |
for |
Duflon Europe Limited |
REGISTERED NUMBER: |
Financial Statements for the Year Ended 31 March 2024 |
for |
Duflon Europe Limited |
Duflon Europe Limited (Registered number: 02596931) |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
Duflon Europe Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditors |
74a High Street |
Wanstead |
London |
E11 2RJ |
Duflon Europe Limited (Registered number: 02596931) |
Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
CURRENT ASSETS |
Stocks |
Debtors | 4 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 5 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
6 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Duflon Europe Limited is a |
2. | ACCOUNTING POLICIES |
2.1 Basis of preparing the financial statements |
2.2 Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow Company to the 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 bifore 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 signiflcant 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. |
2.3 Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to |
complete and sell. Cost is based on the cost of purchase on a first in, first out basis |
Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is |
reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in |
profit or loss. |
Foreign currency transactions are translated into the functional currency at the exchange rate prevailing at the transaction date. Monetary assets and liabilities, including inventories denominated in foreign currencies, are revalued at the reporting date's exchange rate. Exchange differences arising are recognized in profit or loss. |
Consignment stock |
In accordance with ACCA Technical Factsheet 185, consignment stock that is considered to be, in substance, an asset of the company is recognized as inventory in the balance sheet. A corresponding liability is recorded to reflect the obligation to the manufacturer. This treatment reflects the principle of substance over form, ensuring the financial statements present a true and fair view of the company’s financial position. |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
2.4 Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
2.5 Foreign currency translation |
Functional and presentation currency |
The Company's functional and presentational currency is GBP. Amounts recorded in the financial statements are rounded to the nearest whole £1. |
Transactions and balances |
Foreign Currency Transactions |
Transactions in foreign currencies, including both sales and purchases, are translated into the company’s functional currency (GBP) using the exchange rates published monthly by HMRC in the UK Integrated Online Tariff. These rates are applied consistently throughout the month for all foreign currency transactions. |
The company has opted to use HMRC UK Integrated Online Tariff exchange rates for translating sales and purchases in foreign currencies to ensure: |
i) Consistency: All transactions within a given month are translated at the same rate, simplifying the accounting process. |
ii) Alignment with Tax and Customs Reporting: HMRC exchange rates align with those used for customs declarations and VAT, ensuring consistency between financial reporting and tax compliance. |
At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary |
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 Profit and Loss Account within 'finance income or costs'. All other foreign exchange |
gains and losses are presented in profit or loss within 'other operating income'. |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
2.6 Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue |
in operational existence for the foreseeable future and thus they continue to adopt the going concern |
basis of accounting in preparing the annual financial statements. |
2.7 Interest income |
lnterest income is recognised in profit or loss using the effective interest method. |
2.8 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. |
2.9 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. |
2.10 Pensions |
Defined contribution pension plan |
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. |
2.11 Borrowing costs |
All borrowing costs are recognised in profit or loss in the year in which they are incurred. |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
4. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Trade Debtors |
Trade debtors - £306,139 |
Provision for doubtful debts - (£149,050) |
Trade debtors balance -£157,089 |
The trade debtors balance of £157,089 is stated after deducting a provision for doubtful debts amounting to £149,050. |
Movements in the provision for doubtful debts during the period were as follows: |
Balance brought forward: £184,944 |
Amounts recovered during the period: (£40,831) |
Additional provision made during the period: £4,937 |
The provision represents management’s best estimate of amounts unlikely to be recovered, determined through a detailed review of specific receivables and historical recovery patterns. This approach ensures that the trade debtor balance reflects a realistic expectation of amounts recoverable. |
5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
The Emphasis of matter on the financial statements arises from our inability to obtain sufficient and appropriate evidence to conclusively confirm some of the Intercompany creditor balances included in Amounts owed to group undertakings. |
Consequently, we were unable to determine whether any adjustments to these amounts were necessary. |
6. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
7. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
We draw attention to Note 4 of the financial statements, which describes the inclusion of net foreign exchange gains/losses within purchases in the Profit and Loss Account. Due to limitations in obtaining sufficient and appropriate audit evidence, we were unable to conclusively verify the accuracy of these gain/losses. |
Our opinion is not modified in respect of this matter. |
We draw attention to Note 6 of the financial statements, which describes our inability to obtain sufficient and appropriate | evidence to conclusively confirm the Intercompany trade creditor balances. |
Our opinion is not modified in respect of this matter. |
for and on behalf of |
8. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2024 and 31 March 2023: |
31.3.24 | 31.3.23 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
At the balance sheet date, the director Mr Daljit Singh Gandhum owed £6,034 (2023: £nil) to the company. This has been repaid back within 9 months and 1 day. Hence, no S455 tax applicable. |
Duflon Europe Limited (Registered number: 02596931) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | RELATED PARTY DISCLOSURES |
Duflon Americas LLC |
A company in which Mr J S Gandhum has a 95% holding. |
During the year £103,527 (2023: £85,409) of sales were made to DuFlon Americas LLC and this is shown |
under other income. At the balance sheet date the company is owed £292,341 (2023: £269,485) by the |
DuFlon Americas LLC. |
E-Careers Limited |
Mr. D S Gandhum and Mr. J Gandhum are directors and shareholders. |
The cash received during the year was £11,000 (2023: £25,000). At the balance sheet date the company is owed £311,439 (2023: £322,439) by E-Careers Limited. |
Duflon Europe KFT |
At the balance sheet date Duflon Europe KFTowed £261,137 (2023: £199,852) to the company.During the year £103,176 of management fees was charged by DuFlon Europe KFT. |
Duflon Industries Pvt Ltd |
At the balance sheet date Duflon Industries Pvt Ltd is owed £98,602 (2023: £316,117 Cr) by the company. |
Miltech Limited |
Mr. D S Gandhum and Mr. J Gandhum are directors and shareholders. |
Management fees charged by Miltech Ltd during the year totaled £27,000 (2023: £54,036). At the balance sheet date the company owed £nil (2023: £4,617) to Miltech limited. |
10. | ULTIMATE CONTROLLING PARTY |
The Company is controlled by Duflon lndustries PVT Limited which directly controls 95% of the ordinary |
issued share capital. The ultimate controlling party is Shailesh H Mehta by way of his 86% shareholding in |
Duflon lndustries PVT Limited. |
Duflon lndustries PVT Limited is the largest and smallest group for which consolidated financial |
statements are drawn up. |