Company Registration No. 04877154 (England and Wales)
ACG EUROPE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
ACG EUROPE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
ACG EUROPE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
384
1,616
Current assets
Stocks
194,315
1,891,858
Debtors
5
2,672,500
2,790,278
Cash at bank and in hand
183,963
320,744
3,050,778
5,002,880
Creditors: amounts falling due within one year
6
(361,610)
(2,344,039)
Net current assets
2,689,168
2,658,841
Net assets
2,689,552
2,660,457
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
2,689,452
2,660,357
Total equity
2,689,552
2,660,457
The directors of the company have 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 by the board of directors and authorised for issue on 20 August 2021 and are signed on its behalf by:
V A Sahasrabudhe
Director
Company Registration No. 04877154
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
1
Accounting policies
Company information
ACG Europe Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Barn, Meadow Court, Faygate Lane, Faygate, Horsham, West Sussex, England, RH12 4SJ.
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
being translated
from the
functional currency of
euros as the directors feel the use of sterling as a presentational currency is more appropriate. Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of
ACG Associated Capsules Private Limited.
These consolidated financial statements are available from its registered office
;131 Kandivli Industrial Estate, Kandivli West, Mumbai 400067, Maharashtra, India.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
33% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 3 -
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
Cash and cash equivalents
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.
1.6
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
1.10
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
. Gains and losses arising on translation to presentational currency are included within other comprehensive income.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
8
7
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2020
6,042
Disposals
(1,250)
At 31 March 2021
4,792
Depreciation and impairment
At 1 April 2020
4,426
Depreciation charged in the year
1,232
Eliminated in respect of disposals
(1,250)
At 31 March 2021
4,408
Carrying amount
At 31 March 2021
384
At 31 March 2020
1,616
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
63,895
1,905,135
Corporation tax recoverable
12,164
Other debtors
2,608,605
872,979
2,672,500
2,790,278
Other debtors due within one year include a bank guarantee of £
10,223
(20
20
: £
10
,
631
) as requested by the
Belgian VAT authorities.
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
16,457
99,419
Corporation tax
27,977
Other taxation and social security
14,905
15,287
Other creditors
302,271
2,229,333
361,610
2,344,039
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 6 -
7
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 unqualified.
The senior statutory auditor was Matthew Cleghorn FCA BSc (Hons) and the auditor was Anova.
8
Events after the reporting date
The company continued to transfer its customer contracts to ACG Lukaps d.o.o. after the year end and in the year ending 31 March 2022 trade relating to the sale of capsules and films will have transferred entirely, turnover from these activities will be deemed a discontinued activity. The impact on turnover for the year ended 31 March 2021 would have been £6,171,250. However, the company will continue to trade by way of marketing and sales support activities provided to ACG Lukaps d.o.o. in accordance with the Sales Support Service Agreement entered in to by the two company's on 1 April 2020.
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
ACG Associated Capsules Private Limited - Parent Company:-
During the year under review, the company traded with ACG Associated Capsules Private Limited under normal
commercial terms and purchased goods amounting to £
2,858,763
(20
20
: £
7,652,577
). In addition, during the
year the company
sold services
to
ACG Associated Capsules Private Limited
of
£
10,262
(20
20
: £
17
,
270
)
and paid expenses on behalf them totalling £Nil (2020: £14,214)
.
As at the balance sheet date, the company owed its parent undertaking an amount of £
Nil
(20
20
:
£
1,378,148
).
ACG Pharmapack Private Limited - Related party under common control:-
During the year under review, the company traded with ACG Pharmapack Private Limited under normal
commercial terms and purchased goods amounting to £
1,041,911
(20
20
: £
671,180
).
In addition, during the
year the company sold
golds to ACG Pharmapack Private Limited for £91,403 (2020: £Nil). In addition, during the year the company sold
services
to ACG Pharmapack Private Limited
for £
78,184
(20
20
: £
104,407
).
As at the balance sheet date, the company owed £
214,702
(20
20
: £
515,589
).
ACG Lukaps d.o.o. - Related party under common control:-
During the year under review, the company traded with ACG Lukaps d.o.o. under normal commercial terms and
sold
goods amounting to £
4,914
(20
20
:
purchased from
£
3,447,584
). In addition during the year the company sold
goods to ACG Lukaps d.o.o for £
3,894,972
(20
20
: £
1,056,930
).
In addition during the year the company sold services to ACG Lukaps d.o.o for £441,120 (2020: £nil). Also during the year the company loaned £2,665,380 to ACG Lukaps d.o.o with an interest rate of 2.55% payable per half year.
As at the balance sheet date, the company
was
owed £
2,580,175 by
(20
20
: £
844,868
)
ACG Lukaps d.o.o.
ACG PAM
Pharma
- Related party under common control:-
During the year under review, the company traded with ACG PAM
Pharma
under normal commercial terms and purchased
goods amounting to £
Nil
(20
20
: £
2,331
).
In addition, during the
year the company sold
services
to ACG PAM
for £
74,009
(20
20
: £
90,813
)
and during the year the company sold goods to ACG Pam for £61,399 (2020: £Nil)
.
As at the balance sheet date, the company
was
owed
£
12,347 by
(20
20
:
£
27,967 to
)
ACG PAM
.
10
Directors' transactions
No dividends have been paid in the current or prior year to directors.
ACG EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
11
Parent company
The company is controlled by its parent company, ACG Associated Capsules PVT Limited, a company incorporated
in India.