Company Registration No. 03147720 (England and Wales)
RPMC EUROPE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
RPMC EUROPE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
RPMC EUROPE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Investments
4
85,699
85,699
Current assets
Debtors
5
138,507
141,958
Cash at bank and in hand
41
16,326
138,548
158,284
Creditors: amounts falling due within one year
6
(5,596)
(29,242)
Net current assets
132,952
129,042
Total assets less current liabilities
218,651
214,741
Creditors: amounts falling due after more than one year
7
(803,706)
(803,706)
Net liabilities
(585,055)
(588,965)
Capital and reserves
Called up share capital
8
30,000
30,000
Profit and loss reserves
(615,055)
(618,965)
Total equity
(585,055)
(588,965)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 7 June 2021
Mr S J Hall
Director
Company Registration No. 03147720
RPMC EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
1
Accounting policies
Company information
RPMC Europe Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2nd Floor, 201 Great Portland Street, Marylebone, London, W1W 5AB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The implications of the ongoing Covid-19 pandemic, especially in light of the fact that the company has ceased trading, its balance sheet has net liabilities, there is no longer support from its parent company and ultimately it is unable to meet its liabilities as they fall due, have been assessed.
Taking the aforementioned relevant facts into
consideration, the company is no longer a going concern and as a result, given that the
accounts
have
been
prepared
on the going concern basis,
an adverse audit opinion has been issued by the auditors.
Both
under FRS 102 and Companies Act 2006, the financial statements should have been prepared on a
non going concern
basis.
1.3
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.4
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
RPMC EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 3 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.6
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
3,850
3,850
The audit fees for the year were paid by a fellow subsidiary and therefore the profit and loss accounts for RPMC Europe Limited does not contain the auditors remuneration.
RPMC EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 4 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
1
1
4
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
85,699
85,699
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2020 & 31 December 2020
85,699
Carrying amount
At 31 December 2020
85,699
At 31 December 2019
85,699
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
119,647
119,704
Other debtors
18,860
22,254
138,507
141,958
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
30
Trade creditors
5,566
29,242
5,596
29,242
RPMC EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 5 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Amounts owed to group undertakings
803,706
803,706
8
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30,000
30,000
30,000
30,000
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was qualified and the auditor reported as follows:
RPMC EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
9
Audit report information
(Continued)
- 6 -
Adverse opinion
We have audited the financial statements of RPMC Europe Limited (the 'company') for the year ended 31 December 2020 which comprise , the balance sheet and 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion, because of the significance of the matter described in the basis for adverse opinion section of our report, the financial statements:
-
do not give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the year then ended;
-
have not been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have not been prepared in accordance with the requirements of the Companies Act 2006.
Basis for adverse opinion
The company has ceased trading, its balance sheet has net liabilities, there is no longer support from its parent company and ultimately it is unable to pay its creditors. Taking the aforementioned relevant facts into consideration, the company is no longer a going concern and as a result, given that the directors have prepared the accounts on the going concern basis, the audit report contains an adverse opinion. Both under FRS 102 and Companies Act 2006, the financial statements should have been prepared on a non going concern basis.
In addition to the above, the company has investments of £85,699, in RPMC Marketing do Brazil LTDA (a limited company registered in Brazil where the company owns 50% of the share capital) that are valued at cost. Based on the audit work undertaken, we are of the opinion that the relevant investments should have been written down to £nil given that RPMC Marketing do Brazil LTDA is a dormant company.
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 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.
The senior statutory auditor was Lorna Watson.
The auditor was Shaw Gibbs (Audit) Limited.
10
Related party transactions
Related party transactions have not been disclosed as per FRS 102 section 33.1A.
11
Controlling party
The directors consider that the ultimate holding company and ultimate controlling party is Hakuhodo DY Holdings Inc. a company incorporated in Japan. The ultimate controlling party is by virtue of its indirect ownership of all the company’s issued share capital. Consolidated financial statements can be found here:
https://www.hakuhodody-holdings.co.jp/english/ir/library/ar/