Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
COMPANY INFORMATION
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T & S ENTERPRISES (LONDON) LIMITED
CONTENTS
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T & S ENTERPRISES (LONDON) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The business continued as an importer/distributor of premium seafood and products from Japan such as Wagyu beef, Vegetables. The company developed supply chain so that it could maintain stable supply of wider range products.
In 2020, we have experienced COVID-19 restrictions and lockdowns, which had greater impact for wholesale fish business due to restaurants are required to close down from March to August and then November to December. We had a significant revenue drop due to these, however, we reviewed our existing customer portfolio and diversified the customer base by changing our product portfolio which suitable for restricted business activities.
The business has been exposed to a significant impact in terms of product sourcing, logistics and staffing due to the first lockdown of the COVID pandemic. We continued to maintain the highest standards of hygiene and therefore, there were no production staff infected by COVID prior to vaccine distribution.
The masks were provided by Japan HQ to support our operation during lockdown. We have learned from this pandemic to review our supply chain to diversify suppliers globally. Food Industry Standards The company is subject to stringent levels of food hygiene and safety inspections are carried out by the relevant regulatory bodies on a periodic basis. Sustainable Fishing The company follows strict control of fishing quotas and import regulations and is subject to changes in global jurisdictional regulations.
For the year ended 31st December 2020, turnover decreased from £13.8m to £7.9m. However, due to the review of customer and product portfolio, gross profit margin increased from 10.9% to 15.2%.
By reviewing customer and product portfolios, we have manged to increase profit margin under restricted business activities. Future developments Future developments are described in the directors report.
This report was approved by the board on 22 February 2022
and signed on its behalf.
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T & S ENTERPRISES (LONDON) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
The directors are responsible for preparing the Strategic Report, 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.
The loss for the year, after taxation, amounted to £
773,168
(2019 -
loss
£
271,620
)
.
The directors do not recommend payment of a dividend.
The directors who served during the year were:
The main future development is to focus on growth. The company has planned to hire more staff, machineries and to achieve different hygiene certification to approach major customers that require a higher standard of traceability and food safety standard.
There were no branches outside the United Kingdom.
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T & S ENTERPRISES (LONDON) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
The company's activities expose it to a number of financial risks including cash flow risk, credit risk and liquidity risk. These risks and their management are as follows:
Cash flow risk The company has been importing a lot of products from other countries and our major customers are UK based. Therefore, the company has been exposed to foreign exchange risk. The currencies used for imports are JPY, EUR and USD. Depreciation of GBP against these 3 currencies would increase our cost. Credit risk The company is exposed to credit risk because our major customers are medium and small size restaurants. However, the company has maintained a credit insurance policy with a major credit insurance company and the company's credit risk has been appropriately mitigated. Liquidity risk The company ensures that it has sufficient funds and bank credit lines to meet its working capital requirements and future developments. The company has maintained invoice financing facilities with a major UK bank, where the company can sell whole or part of its eligible account receivable portfolio if required.
2020 is the year of the extraordinary. The COVID-19 pandemic has hugely impacted the industry and the company operates, with the increase of the uncertainty levels and unpredictable events and conditions.
Greenback Alan LLP has expressed its willingness to continue in office as independent auditor of the Company.
This report was approved by the board on
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T & S ENTERPRISES (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T & S ENTERPRISES (LONDON) LIMITED
We have audited the financial statements of T & S Enterprises (London) Limited (the 'Company') for the year ended 31 December 2020, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity
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).
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 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 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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T & S ENTERPRISES (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T & S ENTERPRISES (LONDON) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic Report and the Directors' Report have 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 Strategic Report or the Directors' Report.
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T & S ENTERPRISES (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T & S ENTERPRISES (LONDON) LIMITED (CONTINUED)
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 Auditors' 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:
We obtained a general understanding of the Company’s legal and regulatory framework through enquiry of management concerning: their understanding of relevant laws and regulations; the entity’s policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company’s industry and regulation. We understand that the Company complies with the framework through having in place robust procedures and policies that are develop with and monitored by the parent company and the wider group, and by outsourcing and taking external professional legal, tax and accounting advice on relevant specialist functions and areas including the preparation of payroll, financial statements and corporate tax compliance. In the context of the audit, we considered those laws and regulations: which determine the form and content of the financial statements; which are central to the Company’s ability to conduct its business; and where failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Company: •The Companies Act 2006, FRS 102, UK tax laws. The senior statutory auditor led a discussion with the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:
∙
Manipulation or error in revenue recognition leading to overstatement of revenue (and debtors) to inflate the results, and reversing these following the yearend close;
∙
Debtor recoverability arising from overstating the debtors balance and not impairing for debtors that cannot/do not pay post year end;
∙
Manipulation or error in recording expenses and liabilities in appropriate accounting period to achieve favourable results;
∙
Manipulation or error of stock existence arising from the omission or inappropriate stock leading to over or understatement of profits and assets;
∙
Manipulation or error in stock valuation arising from obsolescence leading to overstatement of profits and assets;
∙
Risk of manipulation or errors of payroll record due to lack of control over the payroll accounting processes;
∙
Manipulation or error in assumptions used to prepare the budgets and medium-term plans of the company leading to an inappropriate basis of preparation of the financial statements under the going concern assumption;
The procedures we carried out to gain sufficient appropriate audit evidence in the above areas included:
∙Identifying the business cycles and control environment put in place by management to prevent and detect
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T & S ENTERPRISES (LONDON) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF T & S ENTERPRISES (LONDON) LIMITED (CONTINUED)
fraud and error, and performing walkthrough procedures to determine their appropriate implementation;
∙
Performing substantive testing on appropriate samples and in-depth analytical procedures, and investigating any discrepancies identified;
∙
Documenting the assumptions and judgements made by management in their significant accounting estimates and forecasts and challenging these with management;
∙
Identifying and testing journal entries, in particular those around the year end, and involving unusual postings, account combinations, or amounts;
Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities. In particular, both the senior statutory auditor and the audit manager have a number of years’ experience in dealing with similar manufacturing companies, and prepare accounts under FRS 102. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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 Auditors' 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
Chartered Accountants
89 Spa Road
SE16 3SG
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T & S ENTERPRISES (LONDON) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
REGISTERED NUMBER:
03818920
BALANCE SHEET
AS AT
31 DECEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 24 form part of these financial statements.
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T & S ENTERPRISES (LONDON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
T & S Enterprises (London) Limited is a private company limited by shares registered in England. The registered office of the company is 168 Church Road Brighton Sussex BN3 2DL. The company's place of business is 458 Heather Park Drive, Wembley HA0 1SS. The nature of the company's operations and its principal activities continued to be as a wholesale ditributor of food products.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
Cash flow statement
The company has availed of the exemption in FRS 102 from the requirement to prepare a Cash Flow Statement because it is a subsidiary undertaking for which the consolidated financial statements are publicly available.
The following principal accounting policies have been applied:
The current global coronavirus pandemic has affected many organisations and continues to create worldwide uncertainty in the foreseeable future. The company’s forecasts and projections, taking into account the possibility of changes in the trading performance, show that the company should be able to operate within the level of its current financial arrangements. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors, having made sufficient enquiries, are satisfied that the ultimate parent company will provide financial support in terms of contributing towards potential liquidity and working capital shortfalls. The company therefore continues to adopt the going concern basis in preparing its financial statements.
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
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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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. In respect of the judgements, estimates and assumptions made by management in preparing these financial statements, none are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities presented.
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Analysis of turnover by country of destination:
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
12.
Taxation (continued)
There were no factors that may affect future tax charges.
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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T & S ENTERPRISES (LONDON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Profit and loss account
The company is a wholly owned subsidiary of Atariya Foods Limited, and the company's ultimate parent undertaking is JFLA Holdings Inc. whose registered office address is 1-5-6 Nihonbashi-kakigara-cho, Chuo-ku, Tokyo 103-0014. JFLA Holdings Inc. is regarded as the ultimate controlling party and the parent of the largest group in which the results of the company are consolidated.
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