Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
COMPANY INFORMATION
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their strategic report on the group for the year ended 31 March 2024 ("FY2024"). The principal activity of the group during the year continued to be that of the manufacture of metal pressings and welded assemblies for the automotive industry.
Ricor Global Limited (“Ricor” and “the group”) continues to evolve as an international player in the automotive industry and beyond. Supplying to a wide range of both Original Equipment Manufacturers (“OEM”) and Tier one customers, Ricor’s expertise is in the supply of metal stampings, tube manipulation and assemblies throughout the vehicle structure. Supplying products globally via seven facilities across the UK, Poland and Slovakia and an office and tooling facilities in China, Ricor has an established international footprint which is well situated to support its customers on a worldwide basis.
The group’s results for the year ended 31 March 2024 reflect a recovery in customer demand after the adverse effects of the Covid-19 pandemic, Brexit, Russia's invasion of Ukraine and microchip shortages. The group continued to be impacted by raw material price rises, inflation, trapped labour, supply chain issues, customer plant stoppages and customer insourcing. Customer production schedules continued to fluctuate as the industry as a whole wrestled with similar challenges along with changeable consumer demand and an increasingly complex regulatory environment.
The directors monitor the performance of the group by reference to key performance indicators, including turnover, gross profit and margin, earnings before interest, tax, depreciation and amortisation (“EBITDA”), and key areas influencing working capital. These are discussed in more detail below. The group recorded turnover of £123.9m in FY2024, an increase of 9% when compared with turnover in the year ended 31 March 2023 (“FY2023”) of £113.7m, following a recovery of OEM build volumes. The gross profit for FY2024 was £13.9m, an increase of £6.6m compared with the gross profit for FY2023 of £7.3m and the gross profit margin increased to 11.2% in FY2024 from 6.4% in FY2023. The operating loss was £0.3m in FY2024 (FY2023: £7.7m). The decrease in operating loss reflected the flow through of gross profit. The financial position of the group continued to be challenging and recorded a net liabilities position. The group’s working capital and longer-term financing needs are met through invoice discounting and group debt. The wider group’s working capital and longer-term financing needs continue to be met through a combination of external term loans, an overdraft facility and shareholder debt and equity. The directors and the management team are dedicated to maintaining transparent and collaborative working relationships with all key stakeholders. Consequently, the group maintains ongoing dialogue with facility providers and this ensures the facilities continue to be made available. Post balance sheet date, the group has undertaken a recapitalisation which saw the second lien lender exchange part of its debt for a majority equity stake in the group, while certain other unsecured creditors exchanged their debt for minority equity stakes. As part of this recapitalisation, the group has renegotiated the terms of the loans and facilities provided by its key financing partners, agreeing to extend the repayment of the loans that were previously due in June 2025 to June 2028. In addition, the deferral of some capital repayments has been agreed and the interest rate applied to some of the facilities will be reduced. Management considers that the covenants which have been agreed as part of this refinancing process will be complied with, based upon the board-approved forecasts that have been shared with the financing partners.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Health and safety
The group invests in training and is committed to maintaining a good quality and motivated workforce. The directors are committed to taking measures to continuously improve the health, safety and welfare of all their staff, this includes a training and risk assessment programme. All accidents are thoroughly investigated, and steps taken to avoid a re-occurrence.
Financing risk
As noted above, the group is reliant upon third party lenders. The group’s directors and management team are dedicated to maintaining a transparent and collaborative working relationship with these lenders, ensuring that the financing requirements of the group are met, taking account of both short-term and longer-term needs. After the balance sheet date and before the date of approval of these financial statements, the group has renegotiated the terms of the loans and facilities provided by its key financing partners, agreeing to extend the repayment of the loans due in June 2025 to June 2028. In addition, management considers that the covenants which have been agreed as part of this refinancing will be complied with based upon the board approved forecasts which have been shared with financing partners. The forecasts have been prepared based on available data surrounding assumed pricing, volumes and liquidity including information received from customers on expected order volumes. The directors have considered relevant actions to mitigate any negative variances against the forecast and believe such actions, if necessary, will allow the group to continue to meet the loan covenants. The group, as a key supplier, continues to enjoy strong customer relationships. The nature of these strategic relationships coupled with similarly strong supplier relationships is considered by the directors to be pivotal, should the need arise, to discuss financial arrangements. Raw material price movement Certain customer contracts allow for the update of raw material price movement, on a periodic basis. This provides security against commodity price movements. Other customer contracts provide for the purchase of material at a price fixed by the customer, at the start of the contract. Collectively, our contracts with customers protect the business from the impact of volatility in raw material prices. Inflation The UK and European inflation rates remain relatively high, although easing in recent months. This has increased costs within the group. In mitigation, we have discussed and agreed price increases with our customers, in line with the inflationary impact on the business. The price of steel has a major impact on the financial performance of the group, but currently is remaining at lower levels than the exceptionally high prices experienced during the previous financial year. Semi-conductor (micro) chips Our customers are seeing some easing of the difficulties procuring the quantity of microchips required to meet their scheduled production requirements as result of production disruption caused by Covid19. This had caused operational difficulties through the entire automotive supply chain and Ricor were impacted with short term and longerterm production disruption, caused by our customers. Disruption continued throughout 2022 and early 2023, although there are signs of the situation stabilising. We partially mitigated this with a flexible workforce. In addition, we closely monitor and react quickly to these shortterm and longerterm fluctuations, to limit the impact of this disruption and will continue to seek potential recovery of cost from our customers.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Customer concentration
The group is reliant of certain key customers who comprise a significant percentage of the group’s annual revenues. The group mitigates this risk by maintaining a strong relationship with key customers and providing a high-quality product and efficient service and thus being recognised as a reliable strategic business partner. Geo-political uncertainty The ongoing war in Ukraine continues to be closely monitored by the group. The conflict has had an indirect impact to the business despite having no direct suppliers in Ukraine or Russia. The indirect risk of disruption in our customer supply chains is closely monitored by the group as Ukraine is a prime location for the production and assembly of wiring looms for many vehicle OEM's. The secondary impact of sanctions and counter sanctions is also being monitored by the group. Our customers are adept at managing disruptions in their global supply chains and we anticipate that the long-term impact on the group will be moderate.
Subsequent to the year end, as a result of a corporate restructuring in February 2025, D R Johanson ceased to be the ultimate controlling party and the ultimate controlling party of the group became Tosca Debt Capital GP II LLP ("TDC"). There has been no change in the business of the group, strategy or the executive management team.
As part of the on-going restructuring, certain debts have been cancelled or waived, including capitalised interest and redemption premium of the debt-like preferred shares, loans from shareholders and deferred consideration. The second lien lender, Tosca Debt Capital (Luxembourg) SARL, has confirmed that they will write down existing debt to a residual balance of £9.5m by swapping capitalised interest on other loans and the redemption premium fee for new and existing equity. In addition, TDC will make additional funding available in the form of a new £6.1m facility. Both of the group’s lenders have credit committee approval to an extension of the existing finance facilities by 36 months to June 2028. In addition, the senior lender has agreed to a deferral of capital repayments until January 2027.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
To illustrate the impact of the above, the group’s liabilities have been restated below as if the agreements had taken effect in March 2024:
In addition to the financial restructuring, the group has assessed operational capacity requirements for the future. A combination of economic and other factors has contributed to operational challenges that have generated significant financial losses to the Studley plant for the past number of years. This has ultimately led the group to take the difficult decision to scale down its operations in Studley and close the plant when the property lease expires in July 2026. Customers and suppliers have been informed and will support the transfer of manufacturing operations to other plants within the group.
The group recognise the importance of delivering effective corporate governance in supporting the long term success and sustainability of its business and operates under high standards of corporate governance.
The directors are required to act in the way that they consider would be most likely to promote the success of the group for the benefits of its members as a whole, with regards to the matters below, and work in collaboration with the group’s senior management team in order to achieve this.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
With the formation of a new group management board, more formality has been brought to the review and challenge of financial performance, liquidity management and business decisions. Clear authority limits and levels have been set for management.
The likely consequences of any decision in the long-term The directors consider the medium and long-term impact of decisions when formulating plans and strategic direction for the group. The group’s senior management team prepares 3 year forecasts and promotes consideration of the long-term impact of all the board's strategic decisions. The interests of the company's employees The board considers our people to be our greatest asset and the interests of our employees are always considered when decisions are made. The engagement with employees has been critical during the challenging period that the group has recently faced. The group has increased this engagement with the employees to further drive focus on the health, safety and welfare of its employees. The group's policy is to consult and discuss with employees mainly through regular meetings with the Works Council including discussion of matters likely to affect employees' interests with the employee representatives. In addition, regular communications are undertaken by the directores via email and on staff noticeboards of other important matters. Statement by the directors on performance of their statutory duties in accordance with s.172 (1) Companies Act 2006 (continued) The need to foster the company's business relationships with suppliers, funders, customers and others The group is focused on building strong, mutually beneficial relationships with suppliers and customers. Customers are kept up to date with ongoing business activities and developments with a view to creating and nurturing long term partnerships. Supplier relationships are managed regularly with continuous engagement and sharing of information. The activities carried out in development of these partnerships are reported regularly to the management team. Funders receive monthly management accounts and reports in line with requirements of the banking agreements. The monthly board meetings of the Ricor Group are also attended by representatives of our funders, at which all important strategic decisions are discussed and communicated. Board meetings are held more regularly as required. The impact of the company's operations on the community and environment The group is focused on ensuring that its operations are in compliance with environmental laws and regulations. Sustainability and doing business responsibly are very important factors for the group. The business reviews and seeks to reduce wherever possible our environmental footprint. The management team recognise the need to conduct business in a way that is ethical, compliant and to a high standard. The business is governed around a framework, with appropriate training on correct business conduct where required. The business is governed around key values, of which integrity and transparency are key. The directors are committed to taking measures to continuously improve the health, safety and welfare of all their staff, this includes a training and risk assessment programme. The desirability of the company maintaining a reputation for high standards of business conduct The directors believe that it is crucial that the group are trusted by all stakeholders to maintain the highest standards in everything the group does as a business. The directors aim to always do the right thing with our customers, suppliers, employees and other stakeholders. The board has a low risk appetite for reputational risk and such considerations are always part of the decision making process.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The need to act fairly between members of the company Ricor Global Limited is a parent entity of wholly owned subsidiaries. The directors have regular and open dialogue with its representatives.
This report was approved by the board.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
The loss for the year, after taxation, amounted to £7,897,597 (2023 - loss £13,070,245).
A dividend of £Nil (2023: £701,745) was declared in the financial year.
The directors who served during the year were:
As required by the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the group's energy use and greenhouse gas (GHG) emissions are set out below.
The data relates to the UK emissions of the subsidiary subject to the legislation, Walsall Pressings Company Limited for the 12 month period from 1 April 2023 to 31 March 2024.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Streamlined Energy and Carbon Reporting (SECR) (continued)
Qualification and reporting methodology The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol - Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting. Intensity measurement The chosen intensity measurement ratio is total gross emissions in metric tonnes of CO2e per employee. Measures taken to improve energy efficiency The directors are committed to reduce energy consumption and CO2 emissions. Walsall Pressings Company Limited switched to use solely renewable electricity during FY2024. The group requires that each manufacturing plant attain the ISO14001 standard, which incorporates an action plan for environmental improvement planning, a part of which is addressing energy consumption and CO2 emission reduction. All companies comply except Slovakia, as a new company, which is working towards this standard.
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Subsequent to the year end, as a result of a corporate restructuring in February 2025, D R Johanson ceased to be the ultimate controlling party and the ultimate controlling party of the group became Tosca Debt Capital GP II LLP ("TDC"). There has been no change in the business of the group, strategy or the executive management team.
As part of the on-going restructuring, certain debts have been cancelled or waived, including capitalised interest and redemption premium of the debt-like preferred shares, loans from shareholders and deferred consideration. The second lien lender, Tosca Debt Capital (Luxembourg) SARL, has confirmed that they will write down existing debt to a residual balance of £9.5m by swapping capitalised interest on other loans and the redemption premium fee for new and existing equity. In addition, TDC will make additional funding available in the form of a new £6.1m facility. Both of the group’s lenders have credit committee approval to an extension of the existing finance facilities by 36 months to June 2028. In addition, the senior lender has agreed to a deferral of capital repayments until January 2027. In addition to the financial restructuring, the group has assessed operational capacity requirements for the future. A combination of economic and other factors has contributed to operational challenges that have generated significant financial losses to the Studley plant for the past number of years. This has ultimately led the group to take the difficult decision to scale down its operations in Studley and close the plant when the property lease expires in July 2026. Customers and suppliers have been informed and will support the transfer of manufacturing operations to other plants within the group. To illustrate the impact of the above on the group's liabilities have been restated as if the agreements had taken effect in March 2024 within the table in the strategic report.
This report was approved by the board and signed on its behalf.
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICOR GLOBAL LIMITED
FOR THE YEAR ENDED 31 MARCH 2024
We have audited the financial statements of Ricor Global Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the consolidated profit and loss account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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.
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICOR GLOBAL LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Included on page 14 of these financial statements, which sets out the consolidated profit and loss account, is a table entitled 'Non-UK GAAP alternative performance measure' which discloses an alternative performance measure that is not required to be presented in the financial statements in order for the financial statements to be prepared in accordance with applicable law and United Kingdom Accounting Standards including FRS 102. Our opinion on these financial statements does not cover this table
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICOR GLOBAL LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the automotive manufacturing sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group company, including the Companies Act 2006, taxation legislation and data protection, employment, environmental and health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested a sample of journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RICOR GLOBAL LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims.
Auditor’s responsibilities for the audit of the financial statements (continued)
Our risk assessment findings for both non-compliance with laws and regulations and the susceptibility of the group’s financial statements to material misstatement arising from fraud were communicated with component auditors so that they could include them within their own risk assessment procedures and include, where appropriate audit procedures in response to such risks in their work. We reviewed the responses from component auditors to the instructions provided by us and reviewed working papers where it was considered appropriate to reach out conclusions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procudures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 52 form part of these financial statements.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RICOR GLOBAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 52 form part of these financial statements.
Page 20
|