REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements |
|
for the Year Ended 31 December 2021 |
|
for |
|
ESSEM Ltd |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements |
|
for the Year Ended 31 December 2021 |
|
for |
|
ESSEM Ltd |
ESSEM Ltd (Registered number: 09449978) |
|
|
|
|
|
|
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 3 |
|
Report of the Independent Auditors | 4 |
|
Profit and Loss Account | 7 |
|
Balance Sheet | 8 |
|
Statement of Changes in Equity | 9 |
|
Cash Flow Statement | 10 |
|
Notes to the Financial Statements | 11 |
|
ESSEM Ltd |
|
Company Information |
for the Year Ended 31 December 2021 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
AUDITORS: |
|
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
|
|
|
BANKERS: |
|
Market Place |
Chesterfield |
Derbyshire |
S40 1TN |
ESSEM Ltd (Registered number: 09449978) |
|
Strategic Report |
for the Year Ended 31 December 2021 |
|
The directors present their strategic report for the year ended 31 December 2021. |
|
REVIEW OF BUSINESS |
During the course of the period, the company's principle activity continued to be that of processing of raw tobacco. |
|
The results for the year show a loss of £309,458 (2020: £710). The total shareholders funds have decreased to £153,748 overdrawn (2020: £155,710 surplus). |
|
The performance of the company is satisfactory, considering the pressures from the current economic climate and the competitive environment it operates in. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's principal financial instruments comprise bank balances and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. |
|
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to clients and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
|
The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The company manages these risks by financing its operations through retained profits. There is a risk resulting from foreign exchange due to the international trade. These risks are managed by having bank accounts for the relevant currencies so no exchanges are made unless necessary. |
|
The company has been exposed to increased risks as a result of COVID-19 which has restricted business throughout the wider global economy. This risk has been managed by utilising certain government support schemes and careful planning by the directors. The directors maintain a watching brief on all developments arising from the pandemic. |
|
The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the company's exposure to fluctuating exchange rates, with the future cash flows expected to rise with the company's trading activities. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
ESSEM Ltd (Registered number: 09449978) |
|
Report of the Directors |
for the Year Ended 31 December 2021 |
|
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
|
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
|
|
|
|
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements 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 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. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Report of the Independent Auditors to the Members of |
ESSEM Ltd |
|
Opinion |
We have audited the financial statements of ESSEM Ltd (the 'company') for the year ended 31 December 2021 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
|
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
|
Basis for opinion |
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 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. |
|
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. |
|
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
|
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. |
|
In connection with our audit of the financial statements, 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 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. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
ESSEM Ltd |
|
|
Matters on which we are required to report by exception |
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 Report of the Directors. |
|
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
|
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
|
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
|
Auditors' responsibilities for the audit of the financial statements |
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 a Report of the Auditors 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. |
|
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
|
Based on our understanding of the company and sector in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included: |
|
- | Enquiry of management around actual and potential litigation and claims; |
- |
Reviewing financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations; |
- |
Performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
|
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
|
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
ESSEM Ltd |
|
|
Use of our 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 a Report of the Auditors 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
|
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
|
|
ESSEM Ltd (Registered number: 09449978) |
|
Profit and Loss Account |
for the Year Ended 31 December 2021 |
|
2021 | 2020 |
Notes | £ | £ |
|
TURNOVER |
|
|
|
Cost of sales |
|
|
GROSS (LOSS)/PROFIT | ( |
) |
|
|
Administrative expenses |
|
|
OPERATING LOSS and |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
|
Tax on loss | 5 |
|
|
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
) |
( |
) |
ESSEM Ltd (Registered number: 09449978) |
|
Balance Sheet |
31 December 2021 |
|
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 6 |
|
|
|
CURRENT ASSETS |
Stocks | 7 |
|
|
Debtors | 8 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 9 |
|
|
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
( |
) |
|
|
CAPITAL AND RESERVES |
Called up share capital | 10 |
|
|
Retained earnings | 11 | ( |
) |
|
SHAREHOLDERS' FUNDS | ( |
) |
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
ESSEM Ltd (Registered number: 09449978) |
|
Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 January 2020 |
|
|
|
|
Changes in equity |
Deficit for the year | - | (710 | ) | (710 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2020 |
|
|
|
|
Changes in equity |
Deficit for the year | - | (309,458 | ) | (309,458 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 |
|
( |
) | ( |
) |
ESSEM Ltd (Registered number: 09449978) |
|
Cash Flow Statement |
for the Year Ended 31 December 2021 |
|
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 13 |
|
|
Tax paid |
|
( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
|
Net cash from investing activities | ( |
) |
|
|
Cash flows from financing activities |
Amount introduced by directors | 507,000 | - |
Amount withdrawn by directors | (282,076 | ) | - |
Net cash from financing activities |
|
|
|
Increase in cash and cash equivalents |
|
|
Cash and cash equivalents at
beginning of year |
14 |
|
236,296 |
|
Cash and cash equivalents at end of
year |
14 |
673,253 |
338,609 |
ESSEM Ltd (Registered number: 09449978) |
|
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
|
1. | STATUTORY INFORMATION |
|
ESSEM Ltd is a
|
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
Turnover |
Turnover represents net invoiced sales of goods. Turnover is recognised in the year in which the goods are provided. |
|
Tangible fixed assets |
|
Computer equipment | - |
|
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for slow moving and obsolete items. Cost represents the invoiced cost of goods on a first in first out basis. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Going concern |
The accounts have been prepared on the going concern basis. The directors have confirmed the continued financial support from the related undertakings and that no repayments on inter-company loans or director loan accounts will be made until the company has adequate funds. |
|
3. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Directors | 2 | 2 |
Administration | 1 | 1 |
|
|
|
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
ESSEM Ltd (Registered number: 09449978) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
4. | OPERATING LOSS |
|
The operating loss is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences |
|
( |
) |
|
5. | TAXATION |
|
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 December 2021 nor for the year ended 31 December 2020. |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2021 | 2020 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
|
( |
) |
( |
) |
|
Effects of: |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Utilisation of tax losses |
|
|
Other timing differences | 58,852 | - |
Total tax charge | - | - |
|
6. | TANGIBLE FIXED ASSETS |
Computer |
equipment |
£ |
COST |
At 1 January 2021 |
|
Additions |
|
At 31 December 2021 |
|
DEPRECIATION |
At 1 January 2021 |
|
Charge for year |
|
At 31 December 2021 |
|
NET BOOK VALUE |
At 31 December 2021 |
|
At 31 December 2020 |
|
ESSEM Ltd (Registered number: 09449978) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
7. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials |
|
|
Goods in transit | 1,563,399 | 282,525 |
Work-in-progress |
|
|
|
|
|
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
|
|
Directors' current account | 237,558 | 12,634 |
Accruals and deferred income |
|
|
|
|
|
10. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | 1 | 100 | 100 |
|
11. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2021 |
|
Deficit for the year | ( |
) |
At 31 December 2021 | ( |
) |
ESSEM Ltd (Registered number: 09449978) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
12. | RELATED PARTY DISCLOSURES |
|
SM Tobacco Trading and ITPM (International Tobacco Purchasing Mauritius) are related companies both owned and controlled by S M Chalmers. |
|
SM Tobacco Trading - There was total sales in the year of £9,821,460 (2020: £9,088,509). The remaining balance at the year-end was £4,283,809 (2020: £1,910,525). |
|
ITPM - There was total sales in the year of £12,676 (2020: £73,606). The remaining balance at the year-end was £nil (2020: £288,983). There was total purchases in the year of £277,349 (2020: £15,162). |
|
13. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
|
|
(308,850 | ) | (195 | ) |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
|
|
Cash generated from operations |
|
|
|
14. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
|
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 673,253 | 338,609 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 338,609 | 236,296 |
|
|
15. | ANALYSIS OF CHANGES IN NET FUNDS |
|
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 338,609 | 334,644 | 673,253 |
338,609 |
|
673,253 |
Total | 338,609 | 334,644 | 673,253 |