Eurosat Distribution Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02247629 (England and Wales)

Financial Statements

for the Year Ended 31 March 2021

for

EUROSAT DISTRIBUTION LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

Directors:

Mr Abbas Arbab-Zadeh

Mr M P Carver

Secretary:

Mr M P Carver

Registered office:

Coopers House

65a Wingletye Lane

Hornchurch

Essex

RM11 3AT

Registered number:

02247629 (England and Wales)

Auditors:

Haines Watts Essex LLP

Chartered Accountants

Statutory Auditors

Coopers House

65a Wingletye Lane

Hornchurch

Essex

RM11 3AT

Fixed assets

Tangible assets

5

18,469

4,712

Investments

6

10,000

10,000

28,469

14,712

Current assets

Stocks

262,756

325,091

Debtors

7

401,004

481,873

Cash at bank and in hand

632,038

370,087

1,295,798

1,177,051

Creditors

Amounts falling due within one year

8

594,583

420,937

Net current assets

701,215

756,114

Total assets less current liabilities

729,684

770,826

Provisions for liabilities

11

2,679

-

Net assets

727,005

770,826

Capital and reserves

Called up share capital

12

100

100

Retained earnings

726,905

770,726

Shareholders' funds

727,005

770,826

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 August 2021 and were signed on its behalf by:

Mr Abbas Arbab-Zadeh - Director

1.	Statutory information

Eurosat Distribution 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.	Statement of compliance

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The COVID-19 pandemic did not have a negative impact on the entity and the directors do not expect any such negative impact in the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual 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.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. Deferred tax is recalculated annually and whilst every attempt is made to ensure that the deferred tax is accurate as possible, there remains a risk that the provision will not match the actual future tax liability.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

There is estimation uncertainty in calculating stock provisions. The company makes an estimate for obsolete and slow moving stock. Management review the aging profile and physical condition of stock regularly and use this as a basis for the provision.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

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

Improvements to property

-

25% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Government grants

The accruals model has been adopted in recognising grant income relating to the Coronavirus Job Retention Scheme (CJRS). Grant income has been recognised in the same period in which the expense has been incurred and included in other operating income.

Stocks and work in progress

Stocks are stated at the lower of the cost and net realisable value. Where applicable, cost includes attributable overheads in bringing the stock to its present condition and location.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Pension costs and other post-retirement benefits

The company operate a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

4.	Employees and directors

The average number of employees during the year was 9 (2020 - 9 ) .

5.	Tangible fixed assets

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

Cost

At 1 April 2020

28,960

9,625

8,512

Additions

-

-

668

Disposals

-

-

-

At 31 March 2021

28,960

9,625

9,180

Depreciation

At 1 April 2020

25,596

9,625

8,399

Charge for year

1,187

-

182

Eliminated on disposal

-

-

-

At 31 March 2021

26,783

9,625

8,581

Net book value

At 31 March 2021

2,177

-

599

At 31 March 2020

3,364

-

113

Motor

Computer

vehicles

equipment

Totals

£

£

£

Cost

At 1 April 2020

29,342

11,667

88,106

Additions

17,492

-

18,160

Disposals

(14,736

)

-

(14,736

)

At 31 March 2021

32,098

11,667

91,530

Depreciation

At 1 April 2020

29,342

10,432

83,394

Charge for year

2,551

483

4,403

Eliminated on disposal

(14,736

)

-

(14,736

)

At 31 March 2021

17,157

10,915

73,061

Net book value

At 31 March 2021

14,941

752

18,469

At 31 March 2020

-

1,235

4,712

6.	Fixed asset investments

Other

investments

£

Cost

At 1 April 2020

and 31 March 2021

10,000

Net book value

At 31 March 2021

10,000

At 31 March 2020

10,000

The above are companies in which the company's interest at the year end is more than 20%.

7.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

393,132

460,930

Other debtors

7,872

20,943

401,004

481,873

8.

Creditors: amounts falling due within one year

2021

2020

£

£

Trade creditors

419,144

286,200

Taxation and social security

140,646

88,960

Other creditors

34,793

45,777

594,583

420,937

9.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

85,230

82,186

Between one and five years

262,793

341,795

In more than five years

-

6,228

348,023

430,209

10.	Secured debts

A bond and fixed charge has been granted to HSBC over the property and assets of the company. A floating charge is also in existence over all assets.

11.	Provisions for liabilities

2021

2020

£

£

Deferred tax

2,679

-

Deferred

tax

£

Provided during year

2,679

Balance at 31 March 2021

2,679

12.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

£1

100

100

13.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Ian Gorsuch (Senior Statutory Auditor)

for and on behalf of Haines Watts Essex LLP

The following wording was included in the section of the audit report headed "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.

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in note 2 to the financial statements.

14.	Pension commitments

Pension contributions payable during the year amounted to £7,430 (2020: £6,524). There was £1,775 outstanding at the year end (2020: £1,139).

15.	Directors' advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 March 2021 and 31 March 2020:

2021

2020

£

£

Mr Abbas Arbab-Zadeh

Balance outstanding at start of year

-

73,000

Amounts repaid

-

(73,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

16.	Ultimate controlling party

The ultimate controlling party is Mr Abbas Arbab-Zadeh.

Ultimate parent company

NEEM Holdings Limited (incorporated in United Kingdom) is regarded by the directors as being the company's ultimate parent company.

NEEM Holdings Limited is the parent of the smallest and largest group into which the results and financial position of this company are consolidated. Copies of the financial statements of NEEM Holdings Limited are available to the public and may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.