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Company registration number: 01688185
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FOR THE YEAR ENDED
31 DECEMBER 2022
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CHUGOKU PAINTS (UK) LIMITED
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CHUGOKU PAINTS (UK) LIMITED
REGISTERED NUMBER:01688185
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Net assets excluding pension asset
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Allotted, called up and fully paid share capital
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 9 form part of these financial statements.
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Chugoku Paints (UK) Limited is private company limited by shares, incorporated in the United Kingdom and registered in England and Wales. The registered office, which is the same as its principal place of business, is Godliman House, 21 Godliman Street, London, EC4V 5BD.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound sterling.
2.Accounting policies
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Basis of preparation of financial statements
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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 the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
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Foreign currency translation
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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.
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.
Chugoku Paints (UK) Limited acts as a sales agent for Chugoku Paints B.V, the Netherlands under an agreement dated 1 July 2003. Chugoku Paints (UK) Limited thereby receives a commission recognised as turnover in these financial statements based on a profit sharing arrangement as set out in the agreement.
The company has a single revenue stream which is the intercompany transfers of funds to cover expenses incurred while making sales on behalf of the parent company Chugoku Paints B.V., which represents the only contractual obligation to the parent. This revenue stream carries a single performance obligation, being the facilitation of sales in the UK market on behalf of the parent. Due to the straight forward nature of the company's revenue stream and performance obligations all of the revenue attributed to a contract is recognised at the point of intercompany funds.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Defined benefit pension plan
The company participates in the 'Camrex Chugoku Limited Retirement Benefit Scheme' a defined benefit pension scheme for the benefit of its employees, the assets of which are held separately from those of the company in independently administered funds. The scheme is valued every three years by a professionally qualified independent actuary, the rate of contribution being determined by the actuary.
The regular service cost of providing retirement benefits to employees during the year is charged to operating profit in the year. The full cost of providing amendments to benefits in respect of past service is also charged to operating profit in the year.
Income representing the expected return on assets of the scheme during the year is included within interest receivable/payable. This is based on the market value of the assets of the scheme at the start of the financial year. A cost representing the interest on the liabilities of the scheme during the year is included within interest receivable/payable. This arises from the liabilities of the scheme being one year closer to payment.
Differences between actual and expected returns on assets during the year are recognised in the statement of comprehensive income in the year, together with differences arising from changes in the assumptions underlying the present value of scheme liabilities and experience gains and losses arising on scheme liabilities.
Defined contribution pension plan
The company also participates in a defined contribution scheme for employees. The costs are included in the profit and loss account during the period to which they relate.
For defined contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The group has no further payment obligations once the contributions have been paid. The contributions are recognised as a employee benefit expense when they are due, prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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Current and deferred taxation
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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 reporting 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.
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following 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.
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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 and loans to related parties.
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The average monthly number of employees, including directors, during the year was 10 (2021 - 10).
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Charge for the year on owned assets
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Payments received on account
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Other taxation and social security
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Accruals and deferred income
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Allotted, called up and fully paid
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1,000,000 (2021 - 1,000,000) Ordinary shares shares of £1.00 each
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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 £58,851 (2021 - £74,295). Contributions totalling 8,081 (2021 - £12,870) were payable to the fund at the reporting date and are included in creditors.
The Company operates a Defined Benefit Pension Scheme.
An actuarial valuation for FRS 102 purposes was carried out at 31 December 2022 using the projected unit credit method by Scottish Widows.
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Reconciliation of present value of plan liabilities:
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Reconciliation of present value of plan liabilities
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At the beginning of the year
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Reconciliation of present value of plan assets:
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At the beginning of the year
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Fair value of plan assets
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Present value of plan liabilities
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Net pension scheme liability
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
8.Pension commitments (continued)
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The amounts recognised in Profit or Loss are as follows:
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Administrative plan expenses
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Principal actuarial assumptions at the Statement of Financial Position date:
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Changes in assumptions (%)
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Rate of increase in salaries
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Rate of increase for pensions
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Discount rate for liabilities
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- at 65 for a male aged 45 now
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- for a female aged 65 now
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- at 65 for a female member aged 45 now
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Defined benefit pension schemes
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Total market value of assets
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Present value of scheme liabilities
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The current service cost for the year ended 31 December 2022 is £nil (2021: £nil) because there is no further accrual of benefits under the scheme and the expenses incurred for running the scheme are met by the company. The employer contributed £10,000 (2021: £10,000) to the defined benefit pension plan in the year to 31 December 2022.
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CHUGOKU PAINTS (UK) LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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Commitments under operating leases
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At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Ultimate parent undertaking
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The directors regard Chugoku Paints B.V. to be the immediate parent undertaking. At 31 December 2022, the ultimate parent undertaking, largest and smallest group of undertakings to consolidate these statements and controlling parent is a company incorporated in Japan; Chugoku Marine Paints Limited. The consolidated financial statements of Chugoku Marine Paints Limited are available from Tokyo Club Building, 2-6, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo, 100-0013, Japan. There is considered to be no ultimate controlling party.
The auditors' report on the financial statements for the year ended 31 December 2022 was unqualified.
The audit report was signed on 28 September 2023 by Charlotte Langdon ACA (Senior Statutory Auditor) on behalf of Menzies LLP.
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