ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

SEJ DISTRIBUTION LTD - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-05-312021-05-182021-05-182020-05-312021-05-18truetruetruetrue2019-06-01false4339false 06596249 2019-06-01 2020-05-31 06596249 2018-06-01 2019-05-31 06596249 2020-05-31 06596249 2019-05-31 06596249 1 2019-06-01 2020-05-31 06596249 1 2018-06-01 2019-05-31 06596249 1 2019-06-01 2020-05-31 06596249 e:CompanySecretary1 2019-06-01 2020-05-31 06596249 e:Director1 2019-06-01 2020-05-31 06596249 e:Director2 2019-06-01 2020-05-31 06596249 e:RegisteredOffice 2019-06-01 2020-05-31 06596249 e:Agent1 2019-06-01 2020-05-31 06596249 d:PlantMachinery 2019-06-01 2020-05-31 06596249 d:PlantMachinery 2020-05-31 06596249 d:PlantMachinery 2019-05-31 06596249 d:PlantMachinery d:OwnedOrFreeholdAssets 2019-06-01 2020-05-31 06596249 d:MotorVehicles 2019-06-01 2020-05-31 06596249 d:MotorVehicles 2020-05-31 06596249 d:MotorVehicles 2019-05-31 06596249 d:MotorVehicles d:OwnedOrFreeholdAssets 2019-06-01 2020-05-31 06596249 d:OwnedOrFreeholdAssets 2019-06-01 2020-05-31 06596249 d:CurrentFinancialInstruments 2020-05-31 06596249 d:CurrentFinancialInstruments 2019-05-31 06596249 d:CurrentFinancialInstruments d:WithinOneYear 2020-05-31 06596249 d:CurrentFinancialInstruments d:WithinOneYear 2019-05-31 06596249 d:ReportableOperatingSegment1 2019-06-01 2020-05-31 06596249 d:ReportableOperatingSegment1 2018-06-01 2019-05-31 06596249 d:ReportableOperatingSegment2 2019-06-01 2020-05-31 06596249 d:ReportableOperatingSegment2 2018-06-01 2019-05-31 06596249 f:UnitedKingdom 2019-06-01 2020-05-31 06596249 f:UnitedKingdom 2018-06-01 2019-05-31 06596249 f:RestEuropeOutsideUK 2019-06-01 2020-05-31 06596249 f:RestEuropeOutsideUK 2018-06-01 2019-05-31 06596249 f:RestWorldOutsideUK 2019-06-01 2020-05-31 06596249 f:RestWorldOutsideUK 2018-06-01 2019-05-31 06596249 d:UKTax 2019-06-01 2020-05-31 06596249 d:UKTax 2018-06-01 2019-05-31 06596249 d:ShareCapital 2020-05-31 06596249 d:ShareCapital 2019-05-31 06596249 d:RetainedEarningsAccumulatedLosses 2019-06-01 2020-05-31 06596249 d:RetainedEarningsAccumulatedLosses 2020-05-31 06596249 d:RetainedEarningsAccumulatedLosses 2018-06-01 2019-05-31 06596249 d:RetainedEarningsAccumulatedLosses 2019-05-31 06596249 d:RetainedEarningsAccumulatedLosses 2018-06-01 06596249 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-05-31 06596249 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2019-05-31 06596249 d:AcceleratedTaxDepreciationDeferredTax 2020-05-31 06596249 d:AcceleratedTaxDepreciationDeferredTax 2019-05-31 06596249 e:OrdinaryShareClass1 2019-06-01 2020-05-31 06596249 e:OrdinaryShareClass1 2020-05-31 06596249 e:OrdinaryShareClass1 2019-05-31 06596249 e:FRS102 2019-06-01 2020-05-31 06596249 e:Audited 2019-06-01 2020-05-31 06596249 e:FullAccounts 2019-06-01 2020-05-31 06596249 e:PrivateLimitedCompanyLtd 2019-06-01 2020-05-31 06596249 d:WithinOneYear 2020-05-31 06596249 d:WithinOneYear 2019-05-31 06596249 d:BetweenOneFiveYears 2020-05-31 06596249 d:BetweenOneFiveYears 2019-05-31 06596249 2 2019-06-01 2020-05-31 06596249 7 2019-06-01 2020-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06596249

SEJ DISTRIBUTION LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

SEJ DISTRIBUTION LTD

COMPANY INFORMATION

Directors	Anish Kumar Aggarwal
	Sejal Mahesh Aggarwal


Company secretary	Sejal Aggarwal


Registered number	06596249


Registered office	Sej House
	5 Caxton Trading Estate
	Printing House Lane
	Hayes
	Middlesex
	UB3 1BE


Trading Address	Sej House
	5 Caxton Trading Estate
	Printing House Lane
	Hayes
	Middlesex
	UB3 1BE



Independent auditors	Ashon Limited
	Chartered Accountants Statutory Auditors
	First Central 200
	Lakeside Drive
	Park Royal
	London
	NW10 7FQ


Bankers	Barclays Bank PLC
	1 Churchill Place
	London
	E14 5HP

SEJ DISTRIBUTION LTD

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 6
Statement of income and retained earnings	7
Statement of financial position	8
Notes to the financial statements	9 - 23

SEJ DISTRIBUTION LTD

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MAY 2020

Introduction

The directors present their stategic report for the year ended 31 May 2020.

Business review

The directors are generally satisfied with the results for the year which include an increase in turnover ofee approximately £8.5m (2019 £1.9m) as set out in the Statement of Comprehensive Income. The profit after tax has increased by £1m to £2.9m (2019 £1.9m). The gross margin dropped by 1.8% to 2% due to a combination of increased costs of raw materials, wages and other direct costs of sale. The other costs increases relate mainly to increased costs of couriers used for online distribution of goods, as well as increased costs of administrative and sales staff.

The company has a good team of long term and reliable staff who have continued to contribute towards the growth and excellent customer support services.

Principal risks and uncertainties

In common with many other businesses, the uncertainties as a result of the UK leaving the European Union has had an impact on the expansion and development of business. Price increases of goods, courier services and staffing costs contribute to a continuous challenge, as these are difficult to recoup via sales prices due to rigorous competition in online market place.

Financial key performance indicators

The company closely monitors a range of internal key performance indicators to ensure that the business is operating effectively and efficiently.

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

................................................

Anish Kumar Aggarwal

Director

Date: 18 May 2021

Page 1

SEJ DISTRIBUTION LTD

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MAY 2020

The directors present their report and the financial statements for the year ended 31 May 2020.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 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 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activities of the company have continued to be that of supplying a range of industry standard packaging materials.

Results and dividends

The profit for the year, after taxation, amounted to £2,905,313 (2019 - £1,959,357).

During the year, the company paid a dividend of £2,000,000 (2019 - £2,000,000).

Directors

The directors who served during the year were:

Anish Kumar Aggarwal

Sejal Mahesh Aggarwal

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

Page 2

SEJ DISTRIBUTION LTD

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2020

Future developments

The company has long term plans to expand its trade and increase growth, by means of investment in further premises and stocks. Investment is also being made in updating IT systems to enable the company to keep pace with developments in digital technology.

Matters covered in the strategic report

The company has chosen in accordance with s. 414C(11) Companies Act 2006 to set out the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors report. It has done so in respect of financial instruments and future developments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

Covid-19: The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of COVID-19, such as safety and health measures for our people (such as social distancing and working from home) and securing the supply of materials that are essential to our production process.
At this stage, the impact on our business and results has been positive. As we operate in packaging we have found increased demand for our products/our services and expect this to continue. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our people.
Brexit: On 1 January 2021 the UK left the EU. This has no material impact on the company.

Auditors

Under section 487(2) of the Companies Act 2006, Ashon Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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

................................................

Anish Kumar Aggarwal

Director

Date: 18 May 2021

Page 3

SEJ DISTRIBUTION LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEJ DISTRIBUTION LTD

Opinion

We have audited the financial statements of SEJ DISTRIBUTION LTD (the 'Company') for the year ended 31 May 2020, which comprise the Statement of income and retained earnings, the Statement of financial position 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 May 2020 and of its profit for the year 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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

∙the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

∙the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 4

SEJ DISTRIBUTION LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEJ DISTRIBUTION LTD (CONTINUED)

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report 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 Directors' report.

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

Page 5

SEJ DISTRIBUTION LTD

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SEJ DISTRIBUTION LTD (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 is 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 an Auditors' 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 financial statements.

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 Auditors' report.

Use of our report

This report is made solely to the Company's member 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 member those matters we are required to state to them in an Auditors' 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 member for our audit work, for this report, or for the opinions we have formed.

Mr Ashvinkumar Shonchhatra FCA (Senior statutory auditor)

for and on behalf of

Ashon Limited

Chartered Accountants
Statutory Auditors

First Central 200

Lakeside Drive

Park Royal

London

NW10 7FQ

18 May 2021

Page 6

SEJ DISTRIBUTION LTD

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 MAY 2020

	2020	2019
Note	£	£


Turnover	4	25,066,959	16,596,855
Cost of sales		(18,253,540)	(11,751,076)
Gross profit		6,813,419	4,845,779
Distribution costs		(1,692,807)	(1,369,322)
Administrative expenses		(1,423,759)	(1,154,941)
Operating profit	5	3,696,853	2,321,516
Interest receivable and similar income	9	51,139	17,003
Interest payable and expenses	10	(1,668)	(3,395)
Profit before tax		3,746,324	2,335,124
Tax on profit	11	(841,011)	(375,767)
Profit after tax		2,905,313	1,959,357



Retained earnings at the beginning of the year	2,057,412	2,098,055
	2,057,412	2,098,055
Profit for the year	2,905,313	1,959,357
Dividends declared and paid	(2,000,000)	(2,000,000)
Retained earnings at the end of the year	2,962,725	2,057,412

The notes on pages 9 to 23 form part of these financial statements.

Page 7

SEJ DISTRIBUTION LTD

REGISTERED NUMBER: 06596249

STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2020

		2020		2019
Note		£		£

Fixed assets
Tangible assets	13		117,982		98,308
			117,982		98,308
Current assets
Stocks	14	1,085,446		840,090
Debtors: amounts falling due within one year	15	2,439,691		1,110,436
Cash at bank and in hand	16	6,264,000		6,530,234
		9,789,137		8,480,760
Creditors: amounts falling due within one year	17	(6,921,975)		(6,502,975)
Net current assets			2,867,162		1,977,785
Total assets less current liabilities			2,985,144		2,076,093
Provisions for liabilities
Deferred tax	20	(22,417)		(18,679)
			(22,417)		(18,679)
Net assets			2,962,727		2,057,414

Capital and reserves
Called up share capital	21	2	2
Profit and loss account	22	2,962,725	2,057,412
		2,962,727	2,057,414

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

................................................

Anish Kumar Aggarwal

Director

Date: 18 May 2021

The notes on pages 9 to 23 form part of these financial statements.

Page 8

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

1.	General information

SEJ Distribution Ltd is a private company, limited by shares, registered in England and Wales. The Company's registered number and registered office can be found on the Company Information page.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of SEJ Assets Limited as at 31
May 2019 and these financial statements may be obtained from Sej House 5 Caxton Trading Estate, Printing House Lane, Hayes, Middlesex, UB3 1BE.

Page 9

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

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

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

Page 10

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 11

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.8

Current and deferred 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position 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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

2.Accounting policies (continued)

2.9

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

				Plant and machinery	-	25%	on a reducing balance basis
				Motor vehicles	-	25%	on a reducing balance basis

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

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

2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.11

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.13

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.

Page 13

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

2.Accounting policies (continued)

2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

∙at fair value with changes recognised in the Statement of income and retained earnings if the shares are publicly traded or their fair value can otherwise be measured reliably;

∙at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.

2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 14

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and lliabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Packaging goods	25,044,229	16,525,340
Courier services	22,730	71,516
	25,066,959	16,596,856

Analysis of turnover by country of destination:

					2020	2019
					£	£

United Kingdom	25,032,348	16,538,226
Rest of Europe	28,674	21,425
Rest of the world	5,936	37,204
	25,066,958	16,596,855

Exchange differences

2,911

364

Page 15

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

6.	Auditors' remuneration
		2020	2019
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

7,000

7,025

Wages and salaries	950,843	798,005
Social security costs	81,828	70,990
Cost of defined contribution scheme	30,682	29,918
	1,063,353	898,913

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

	2020	2019
	No.	No.

Director	2	2
Administration	2	2
Sales & customer support	13	14
Packing, distribution & logistic	26	21

	43	39

8.	Directors' remuneration
		2020	2019
		£	£

Directors' emoluments	21,926	19,685
Company contributions to defined contribution pension schemes	20,000	20,000
	41,926	39,685

During the year retirement benefits were accruing to 2 directors (2019 - 2) in respect of defined contribution pension schemes.

Page 16

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

9.	Interest receivable
		2020	2019
		£	£

	Other interest receivable	51,139	17,003
		51,139	17,003

10.	Interest payable and similar expenses
		2020	2019
		£	£

	Other loan interest payable	1,668	3,395
		1,668	3,395

Corporation tax
Current tax on profits for the year	704,670	372,486
Adjustments in respect of previous periods	132,603	-
	837,273	372,486

Total current tax	837,273	372,486

Deferred tax
Origination and reversal of timing differences	3,738	3,281
Total deferred tax	3,738	3,281


	Taxation on profit on ordinary activities	841,011	375,767

Page 17

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

11.Taxation (continued)

Profit on ordinary activities before tax

3,746,324

2,335,124

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)	711,802	443,674
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	541	7,400
Capital allowances for year in excess of depreciation	(3,610)	(10,944)
Adjustments to tax charge in respect of prior periods	132,602	-
Other timing differences leading to an increase (decrease) in taxation	3,738	3,281
Group relief	(4,062)	(67,644)
Total tax charge for the year	841,011	375,767

12.	Dividends
		2020	2019
		£	£

	Dividends on Ordinary £1 shares	2,000,000	2,000,000
		2,000,000	2,000,000

Page 18

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

13.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost or valuation
At 1 June 2019	203,828	25,691	229,519
Additions	44,365	14,638	59,003
At 31 May 2020	248,193	40,329	288,522
Depreciation
At 1 June 2019	121,049	10,161	131,210
Charge for the year on owned assets	31,787	7,543	39,330
At 31 May 2020	152,836	17,704	170,540
Net book value
At 31 May 2020	95,357	22,625	117,982
At 31 May 2019	82,779	15,530	98,309

14.	Stocks
		2020	2019
		£	£

Finished goods and goods for resale	1,085,446	840,090
	1,085,446	840,090

15.

Debtors

					2020	2019
					£	£


Trade debtors	1,245,439	802,926
Amounts owed by group undertakings	32,332	66,926
Other debtors	878,822	166,632
Prepayments and accrued income	283,098	73,952
	2,439,691	1,110,436

Page 19

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

15.Debtors (continued)

16.	Cash and cash equivalents
		2020	2019
		£	£

Cash at bank and in hand	6,264,000	6,530,234
	6,264,000	6,530,234

17.	Creditors: Amounts falling due within one year
		2020	2019
		£	£

Trade creditors	3,092,058	1,772,469
Amounts owed to group undertakings	1,663,485	3,599,582
Corporation tax	1,046,006	641,143
Other taxation and social security	531,447	321,824
Other creditors	539,818	125,762
Accruals and deferred income	49,161	42,195
	6,921,975	6,502,975

18.	Charges on assets

The company has given security, by means of a guarantee and debenture consisting of a fixed and floating charge over its assets and business, to secure bank loan of its parent company, SEJ Assets Limited. The secured loans outstanding in the books of the parent company at the date of balance sheet amounted to £2,033,637 (2019 £2,143,182)

19.	Financial instruments
		2020	2019
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	6,264,000	6,530,234

Financial assets measured at fair value through profit or loss comprise Cash at bank and in hand.

Page 20

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

20.	Deferred taxation

		2020
		£

	At beginning of year	(18,679)
	Charged to profit or loss	(3,738)
	At end of year	(22,417)

The provision for deferred taxation is made up as follows:
	2020	2019
	£	£

	Accelerated capital allowances	(22,417)	(18,679)
		(22,417)	(18,679)

21.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

2 (2019 - 2) Ordinary shares of £1.00 each	2	2

22.

Reserves

Profit and loss account

The profit and loss reserve includes all current and prior retained period profits and losses.

23.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £30,681 (2019 - £29,918).
Contributions totalling £2,173 (2019 - £2,896) were payable to the fund at the balance sheet date
and are included in creditors.

Page 21

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

Not later than 1 year	360,000	330,000
Later than 1 year and not later than 5 years	390,000	750,000
	750,000	1,080,000

25.

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Stardard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group.
SEJ Assets Limited, the parent company of SEJ Distribution Ltd holds 75% shares of Triplast Limited. At the balance sheet date, Triplast Limited owed £5,526 (2019 - £33,295) to the company and Company also owed £272,885 (2019 - Nil) to Triplast Limited. During the year, SEJ Distibution Ltd sold goods and services of £37,819 (2019 - £49,166) to Triplast Limited and purchased goods of £1,124,021 (2019 - £442,555) from Triplast Limited.
The directors are also directors and shareholders of AMA Distribution Limited. At the balance sheet date, AMA Distribution Limited owed £45,822 (2019 - £47,637) to the company. This loan is interest-free and repayable on demand.
At the balance sheet date, there was an amount of £197,987 (2019 - £42,357) owing to the directors and directors
Anish Aggarwal is common director of Ascot Assets Limited and SEJ Distribution Ltd, at the balance sheet date, there was an amount of £10,000 (2019 - Nil) owing to Ascot Assets Ltd. This loan is interest-free and repayable on demand.
Key management personnel compensation
Key management personnel compensation in the year totalled £212,400 (2019 - £209,199)

Page 22

SEJ DISTRIBUTION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2020

26.	Post balance sheet events

27.	Controlling party

The immediate and ultimate parent undertaking and controlling party is SEJ Assets Limited, which prepares group financial statements. Copies can be obtained from 5A Caxton Trading Estate, Printing House Lane, Hayes, Middlesex UB3 1BE.

Page 23