EPL Propack UK Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02864279 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 March 2021

for

EPL Propack UK Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

A Conner

P Chaturvedi

REGISTERED OFFICE:

Castle Court

41 London Road

Reigate

Surrey

RH2 9RJ

REGISTERED NUMBER:

02864279 (England and Wales)

AUDITORS:

Pawley & Malyon

14 Austin Friars

London

EC2N 2HE

The directors present their report with the financial statements of the company for the year ended 31 March 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report.

A Conner

P Chaturvedi

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Pawley & Malyon, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

A Conner - Director

29 April 2021

Opinion

We have audited the financial statements of EPL Propack UK Limited (the 'company') for the year ended 31 March 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2021 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to EPL Propack UK Limited and determined that the most significant are those that relate to the reporting framework (FRS102, Companies Act 2006) and the relevant tax compliance regulations in the United Kingdom. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to health and safety, employee matters, environmental and bribery and corruption practices.

We understood how EPL Propack UK Limited is complying with those frameworks by making enquiries of management, those responsible for legal and compliance procedures and the Company Secretary.

We assessed the susceptibility of EPL Propack UK Limited's Financial Statements to material misstatement, including how fraud might occur, by using internal and external information to perform a risk assessment. We considered the risk of fraud through management override and, in response, we incorporated reviews of manual journal entries into our audit approach. We also considered the possibility of fraudulent or corrupt payments made through third parties. Where instances of risk behaviour patterns were identified, we performed additional audit procedures to address each identified risk. These procedures included the testing of transactions back to source information and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. Our procedures involved journal entry testing, with a focus on journals meeting our defined risk criteria based on our understanding of the business and company management.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David H Malyon (Senior Statutory Auditor)

for and on behalf of Pawley & Malyon

14 Austin Friars

London

EC2N 2HE

4 May 2021

TURNOVER

1,559,237

1,672,015

Cost of sales

630,203

702,000

GROSS PROFIT

929,034

970,015

Distribution costs

38

676

Administrative expenses

235,767

2,536,900

235,805

2,537,576

OPERATING PROFIT/(LOSS)

4

693,229

(1,567,561

)

Interest receivable and similar income

1,997

7,459

PROFIT/(LOSS) BEFORE TAXATION

695,226

(1,560,102

)

Tax on profit/(loss)

5

101,234

1,417

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

593,992

(1,561,519

)

PROFIT/(LOSS) FOR THE YEAR

593,992

(1,561,519

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

593,992

(1,561,519

)

FIXED ASSETS

Tangible assets

6

1,650

1,051

CURRENT ASSETS

Debtors

7

166,903

1,737,240

Cash at bank

371,460

732,155

538,363

2,469,395

CREDITORS

Amounts falling due within one year

8

54,524

78,949

NET CURRENT ASSETS

483,839

2,390,446

TOTAL ASSETS LESS CURRENT LIABILITIES

485,489

2,391,497

CAPITAL AND RESERVES

Called up share capital

9

4,270,593

6,770,593

Capital redemption reserve

10

1,000

1,000

Retained earnings

10

(3,786,104

)

(4,380,096

)

SHAREHOLDERS' FUNDS

485,489

2,391,497

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2021 and were signed on its behalf by:

A Conner - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2019

5,011,370

(2,818,577

)

1,000

2,193,793

Changes in equity

Issue of share capital

1,759,223

-

-

1,759,223

Total comprehensive income

-

(1,561,519

)

-

(1,561,519

)

Balance at 31 March 2020

6,770,593

(4,380,096

)

1,000

2,391,497

Changes in equity

Issue of share capital

(2,500,000

)

-

-

(2,500,000

)

Total comprehensive income

-

593,992

-

593,992

Balance at 31 March 2021

4,270,593

(3,786,104

)

1,000

485,489

Cash flows from operating activities

Cash generated from operations

1

2,140,283

(1,246,624

)

Tax paid

(1,417

)

(196

)

Net cash from operating activities

2,138,866

(1,246,820

)

Cash flows from investing activities

Purchase of tangible fixed assets

(1,558

)

(380

)

Interest received

1,997

7,459

Net cash from investing activities

439

7,079

Cash flows from financing activities

Share issue

(2,500,000

)

1,759,223

Net cash from financing activities

(2,500,000

)

1,759,223

(Decrease)/increase in cash and cash equivalents

(360,695

)

519,482

Cash and cash equivalents at beginning of year

2

732,155

212,673

Cash and cash equivalents at end of year

2

371,460

732,155

1.	Reconciliation of profit/(loss) before taxation to cash generated from operations

31/3/21

31/3/20

£

£

Profit/(loss) before taxation

695,226

(1,560,102

)

Depreciation charges

959

906

Decrease in group debtors

1,381,988

217,158

Decrease in group creditors

(2,300

)

(45,010

)

Finance income

(1,997

)

(7,459

)

2,073,876

(1,394,507

)

Decrease in trade and other debtors

87,494

163,784

Decrease in trade and other creditors

(21,087

)

(15,901

)

Cash generated from operations

2,140,283

(1,246,624

)

2.	Cash and cash equivalents

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

Year ended 31 March 2021

31/3/21

1/4/20

£

£

Cash and cash equivalents

371,460

732,155

Year ended 31 March 2020

31/3/20

1/4/19

£

£

Cash and cash equivalents

732,155

212,673

3.	Analysis of changes in net funds

At 1/4/20

Cash flow

At 31/3/21

£

£

£

Net cash

Cash at bank

732,155

(360,695

)

371,460

732,155

(360,695

)

371,460

Total

732,155

(360,695

)

371,460

1.	Statutory information

EPL Propack UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

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

The accounts have been prepared on the going concern basis. The company is reliant on the continuing financial support from the group and the ultimate parent company, Essel Propack Limited, has confirmed this support for a period greater than 12 months from the approval of these financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment

-

33% on cost

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	Employees and directors

31/3/21

31/3/20

£

£

Wages and salaries

51,359

51,837

Social security costs

-

74

51,359

51,911

The average number of employees during the year was as follows:

31/3/21

31/3/20

Administration

5

5

31/3/21

31/3/20

£

£

Directors' remuneration

-

-

4.	Operating profit/(loss)

The operating profit (2020 - operating loss) is stated after charging/(crediting):

31/3/21

31/3/20

£

£

Depreciation - owned assets

959

906

Auditing of accounts

15,200

13,184

Foreign exchange differences

24,902

(46,751

)

5.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31/3/21

31/3/20

£

£

Current tax:

UK corporation tax

379

1,417

Deferred tax

100,855

-

Tax on profit/(loss)

101,234

1,417

6.	Tangible fixed assets

Computer

equipment

£

Cost

At 1 April 2020

30,780

Additions

1,558

At 31 March 2021

32,338

Depreciation

At 1 April 2020

29,729

Charge for year

959

At 31 March 2021

30,688

Net book value

At 31 March 2021

1,650

At 31 March 2020

1,051

7.

Debtors: amounts falling due within one year

31/3/21

31/3/20

£

£

Trade debtors

29,678

117,079

Amounts owed by group undertakings

126,023

1,508,011

Other debtors

-

131

Deferred tax asset

-

100,855

Prepayments

11,202

11,164

166,903

1,737,240

Deferred tax asset

31/3/21

31/3/20

£

£

Accelerated capital allowances

-

(200

)

Tax losses carried forward

-

101,055

-

100,855

8.

Creditors: amounts falling due within one year

31/3/21

31/3/20

£

£

Amounts owed to group undertakings

470

2,770

Corporation tax

379

1,417

Social security and other taxes

18,024

18,236

VAT

14,298

36,695

Accrued expenses

21,353

19,831

54,524

78,949

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/21

31/3/20

value:

£

£

197,059,300

Ordinary

£0.01

1,970,593

1,970,593

2,300

Redeemable preference

£1,00

0

2,300,000

4,800,000

4,270,593

6,770,593

All dividends will be at the discretion of the company and upon winding up the preference shares rank pari passu with the ordinary shares.

The Preference Shares shall be redeemed at par at any time in whole or in part at the election of the company.

The holders of the Preference Shares shall not be entitled to receive notice of meetings or to attend and vote at general meetings of the Company.

10.

Reserves

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 April 2020

(4,380,096

)

1,000

(4,379,096

)

Profit for the year

593,992

593,992

At 31 March 2021

(3,786,104

)

1,000

(3,785,104

)

11.	Ultimate controlling party

The immediate holding company is Lamitube Technologies Limited (Mauritius). The ultimate parent undertaking is The Blackstone Group Inc, an investment company based in New York. The consolidated accounts of Blackstone are available from The United States Securities and Exchange Commission.