ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Company Information
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Contents
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Directors' report
for the period ended 1 January 2022
The directors present their report and the financial statements for HUK 46 Limited ('the company') for the 52 week period ended 1 January 2022.
The directors who served during the period were:
The directors are responsible for preparing 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.
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Directors' report (continued)
for the period ended 1 January 2022
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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Independent auditor's report to the members of HUK 46 Limited
for the period ended 1 January 2022
We have audited the financial statements of HUK 46 Limited ('the company') for the period ended 1 January 2022, which comprise the Statement of comprehensive income, 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).
The audit evidence available to us with respect to an amount of €110,467 included in "other debtors" was limited. As discussed in Note 6, the directors have been unable to enter into a dialogue with a firm of receivers that the company had previously entered into an agreement, to confirm the net amount due to the company under the terms of the agreement. As a result, we have been unable to obtain sufficient appropriate audit evidence surrounding this balance.
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 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 qualified 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 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.
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Independent auditor's report to the members of HUK 46 Limited (continued)
for the period ended 1 January 2022
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. 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.
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 Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' report has been prepared in accordance with applicable legal requirements.
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 Directors' report.
In respect solely of the limitation on our work relating to Other debtors, described above:
∙we have not obtained all the information and explanations that we consider necessary for the purpose of the audit
and;
∙we were unable to determine whether adequate accounting records had been kept
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:
∙the financial statements are not in agreement with the accounting 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 prepare the financial statement in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' report and from the requirement to prepare a Strategic report.
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Independent auditor's report to the members of HUK 46 Limited (continued)
for the period ended 1 January 2022
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 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:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor 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 made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements of the company through discussions with the directors and other management at the planning stage;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations;
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct
material effect on the financial statements or the operations of the company including the Companies Act 2006, and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management;
∙inspecting legal correspondence throughout the period for any potential litigation or claims; and
∙considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws
and regulations.
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Independent auditor's report to the members of HUK 46 Limited (continued)
for the period ended 1 January 2022
Auditor's responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:
∙determined the susceptibility of the company to management override of controls by checking the implementation
of controls and enquiring of individuals involved in the financial reporting processed; and
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any
large variances from the prior period; In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be
inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or collusion. Auditing standards also limit the audit procedures 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.
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
Statutory Auditor
130 Wood Street
EC2V 6DL
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Statement of comprehensive income
for the period ended 1 January 2022
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Statement of financial position
as at
The financial statements were approved and authorised for issue by the board on
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Notes to the financial statements
for the period ended 1 January 2022
The company is a private company limited by shares and incorporated in England and Wales. Its registered address is 84 Grosvenor Street, London, W1K 3JZ. The registered number of the company is 08473976.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102") and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis as the company's connected undertaking, Filefigure 30 Limited, has agreed to provide continuing financial support to the company for at least twelve months from the date of approval of these financial statements.
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Notes to the financial statements
for the period ended 1 January 2022
On 28 November 2013, the company entered into an agreement with the receivers of:
∙FREE RECORD SHOP BELGIUM NV (Wapper 7, 2000 Antwerp (Belgium), registration number: 0404.883.938 (RPR Antwerp) declared bankrupt by decision of the Commercial Court of Antwerp of 19 November 2013; and
∙FREE RECORD SHOP (MEGA) STORE BELGIUM NV (Muntcentrum 6-7-8-9-10, 1000 Brussels (Belgium), registration number: 0444.205.461 (RPR Brussels) declared bankrupt by decision of the Commercial Court of Brussels of 20 November 2013.
As part of this arrangement it was agreed that the company would be solely entitled to receive all sales revenues arising from the operation of the business.
During the process, sales revenues received from cash sales were banked directly into the bank account operated by the receivers. However, the receivers have not transferred all amounts to the company and have not confirmed the quantum of the funds held. During the process, a Belgium VAT liability crystallised on the sales. The directors anticipate the receivers to settle this liability out of the funds retained (see note 7). The directors of the company are continuing to attempt to enter into dialogue with the receivers to resolve the above issue.
As a result, the directors are unable to provide sufficient information to the company's auditors to allow them to form an opinion on the amount included in Other debtors.
The company's records show funds held by the receivers amount to €1,409,657 (2 January 2021 - €1,409,657) and a Belgium VAT liability amounting to €1,299,190 (2 January 2021 - €1,299,190). The net position, amounting to €110,467 (2 January 2021 - €110,467) has been included in 'Other debtors' (see note 4).
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Notes to the financial statements
for the period ended 1 January 2022
As explained in note 6, the receivers have retained certain funds due to the company amounting to €1,409,657 which the directors anticipate the receivers will use to settle a Belgium VAT liability amounting to €1,299,190.
The receivers have not acknowledged the VAT liability nor confirmed the cash funds held. Therefore, there is a possibility that the company could be liable to settle the amount due to the Belgium authorities directly. There were no further contingent liabilities at 1 January 2022 or 2 January 2021.
The company had no capital commitments at 1 January 2022 or 2 January 2021.
At 1 January 2022, HUK 46 Limited was a wholly owned subsidiary of Hilco Trading, LLC, a company registered in the United States of America.
The smallest group of undertakings for which consolidated accounts, which include the company, have been drawn up is that headed by Hilco Trading, LLC. Their registered office is 5 Revere Drive, Suite 206, Northbrook, Illinois, 60062.
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