Registered number:
00784278
Amphenol Limited
Annual report and financial statements
For the year ended
31 December 2021
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Amphenol Limited
Company Information
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Abogado Nominees Limited
Lance Edward D’Amico
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Amphenol Limited
Contents
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Directors' responsibilities statement
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Independent auditors' report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Amphenol Limited
Strategic report
For the year ended 31 December 2021
The directors, in preparing this Strategic report, have complied with s414C of the Companies Act 2006.
Review of the business and key performance indicators
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Amphenol Limited 'the Company' is an EN9100:2018 equivalent to AS9100D accredited company which holds further accreditations for the Military & Aerospace markets. The position of the Company at 31 December 2021 is set out in the balance sheet on page 14.
The key performance indicators include turnover, operating profit and profit after taxation, Parts Per Million (PPM). During the year the Company’s turnover was £31,933,000, down slightly on the previous year due to the downturn in the commercial air market for the full year of 2021 relating to the Covid pandemic which effected global travel (2020: £33,059,000). Operating profit was £5,539,000 up on previous year due to product mix variances improving margins as well as sales into new markets generating increased margin (2020: £4,270,000); trading profit for the year after taxation was £3,863,000 (2020: £2,297,000 profit). PPM is the measurement of quality performance primarily used in the automotive industry, a good defect rate is considered to be less than 1%, in 2021 Amphenol Limited achieved 0.04% which has decreased from 0.08% in 2020. This improvement illustrates the ongoing commitment to supplying quality product to our customers. There were dividend receipts from the Amphenol group 'group' undertakings of £nil (2020: £ nil).
Principal risks and uncertainties
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The key business uncertainties affecting the Company are considered to relate to inflation and supply chain uncertainty. These risks are actively monitored by management, with strategies implemented to respond appropriately to imminent risks identified. The post year end performance to date does not suggest any adverse impact from these risks but we continue to monitor them closely.
Specifically, the consequences of climate change have been considered. In order to ensure the continued resilience of the Company’s business model specific investments have been made to combat the potential impacts of climate change on the business. The business is working hard to improve energy efficiency on a continuous basis by replacing existing lighting with new energy efficient motion sensored lighting and installing automatic shut down for idle machines. This energy efficiency has also been driven by investment projects such as replacing existing plating equipment with new more energy efficient equipment. 31.9% of electricity is now renewable compared to 27.7% in 2020. In 2022 investment in solar panels has been approved and these will be installed in Q4 2022. Metering software is being installed to allow better management of consumption. The risks from climate change to the business are actively considered and managed and at present are not deemed to pose a material long term threat to the business.
Covid-19 – The business has remained operational throughout the pandemic. The onsite management team have ensured that employees are kept safe while at work by implementing social distancing, proximity sensors, air filtering, temperature scanning along with other basic hygiene measures. The business remains resilient and diversified in the directors’ view the potential impact of the Covid pandemic and potential further outbreaks have been considered and addressed in further detail in note 2.3 as part of the going concern section on page 17.
At the time of signing these financial statements, the directors have not identified any impacts which might require a material change to current activities of the Company, nor which would require any adjustments to the financial amounts presented in the financial statements at 31 December 2021. The market movements will impact the value of the underlying assets, the discount rates and potentially the assured mortality rates and therefore will have a material impact on the pension liability albeit it is not practicable to determine at the date of signing.
Page 1
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Amphenol Limited
Strategic report (continued)
For the year ended 31 December 2021
Directors' statement of compliance with duty to promote the success of the Company
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The directors of Amphenol Limited have acted in accordance with their duties which include their duty to act in the way in which they consider to be in good faith and to promote success of the Company for the benefit of its members as a whole having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.
The business produces a strategic plan that contains financial projections for the next 3 years which is currently forecasting a period of moderate growth. Every decision made by the board considers in detail the impact on the Company’s key stakeholders to ensure that the success of the Company is promoted over the long term for the benefit of the group. The directors confirm that they have both engaged with and had regard to the interest of key stakeholders in their duties as directors of the Company.
Future developments and events after the balance sheet date
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The Company has performed a strategic review for the next three years and has forecast revenue to continue to grow throughout the forecast period, with increasing profitability resulting from investments and improvements in its manufacturing strategy. The actions identified in the strategic review ensures the Company expects to be able to continue to improve gross profit despite inflationary headwinds.
This report was approved by the board on 31 January 2023
and signed on its behalf.
Craig Anthony Lampo
Director
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Page 2
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Amphenol Limited
Directors' report
For the year ended 31 December 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
The principal activity of the Company consists of the design, development, manufacturing and marketing of connectors, connector systems and cable assemblies for diversified markets. There have not been any significant changes in the Company’s principal business activities in the year under review.
The profit for the year, after taxation, amounted to £
3,488
,000
(2020 -
£
2,297
,000)
.
The directors do not recommend payment of a dividend (2020: £nil).
Matters covered in the Strategic report
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Details of future developments and events that have occurred after the balance sheet date can be found in the Strategic report on page 2.
The Company’s business activities, together with the factors likely to affect its future development, performance and financial position are set out in the Strategic report on pages 1 and 2. The financial position of the Company and its liquidity position are outlined in the profit and loss account and balance sheet.
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of 12 months from the date of approving the financial statements. The business has assessed the impact of the current economic uncertainty and the Covid 19 pandemic on the business and performed additional sensitivity and stress test analysis that concluded that the Company has sufficient financial resources for its operations and as a consequence, the directors believe that the Company is well placed to manage its business risks. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
The Intercompany Loan from Amphenol East Asia Limited (AEAL), which has been necessary to fund acquisitions, renewed in September 2021. The current loan agreement has been in existence since 2017 and there is no reason to suggest it will not be prolonged for a further period. Although the business is in a net current liability position which is driven by funding received from the group and due back to the group, a letter of support has been received confirming that the group will provide financial support to enable Amphenol to continue trading without material curtailment and settle its debts as they fall due for at least 12 months from the singing of the financial statements.
Further details regarding the adoption of the going concern basis can be found in the accounting policies in the notes to the financial statements.
Page 3
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Amphenol Limited
Directors' report (continued)
For the year ended 31 December 2021
Financial risk management objectives and policies
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The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.
Cash flow risk
The Company’s activities expose it primarily to the financial risks of changes in the US dollar to GBP exchange rate. In addition the Company is exposed to interest rate risk as its loans bear interest at a margin over Euribor. The Company does not manage these risks by use of derivatives due to cost benefit considerations; additionally, the Company does not have external borrowings as all loans to the Company are of an intercompany nature.
Credit risk
The Company’s principal financial assets are cash and trade debtors.
The Company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Credit risk is mitigated by balances being spread over a large number of customers and credit control policies. A thorough monthly review of outstanding balances is undertaken by senior management, and actions for each item are targeted through these meetings.
The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity, to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses short-term debt finance from its parent undertakings as well as being in a Cash pool with the other UK Amphenol businesses.
The directors who served during the year were:
Page 4
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Amphenol Limited
Directors' report (continued)
For the year ended 31 December 2021
Engagement with suppliers, customers and others
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The Company formally engages with employees on a monthly basis where representatives from all areas of the business discuss with the General Manager issues and potential improvements in the business. Throughout the pandemic this meant taking additional necessary steps to ensure the safety of employees to ensure the factory could remain open and employees safe. The business also furloughed some employees for part of the year based on the operational requirements of the business.
Customers are regularly invited on site and employees regularly attend customer sites in order to discuss customer technological and logistical requirements. Close relationships with customers meant we were able to remain agile during the pandemic and accommodate changing demand profiles as our customers industries reacted to the pandemic. This agility has enabled us to work with Customers and Suppliers where we see supply chain issues to provide the best possible outcomes for all stakeholders.
Suppliers are key to the Amphenol business, many of our key suppliers are group undertakings, Amphenol Limited representatives attend regular meetings with these businesses to align technological developments. The Covid-19 pandemic and subsequent economic uncertainly put strain on global supply chains, the business leveraged its close relationships with key suppliers to put in place temporary stocking agreements and flexibility around open order books. This helped us to continue to service our customers and minimise the impact of the pandemic on our business.
The board is kept informed of stakeholder views via monthly operations review between the management team and the director’s representatives as well as annual strategic planning and budget meetings, these meetings continued albeit virtually throughout 2021.
From an environmental and community point of view the business works hard to improve energy efficiency. Amphenol engineers regularly visit local schools and engage in engineering competitions with students and encourage work placements at Amphenol. The Company operates an apprenticeship scheme supported by local colleges.
The Company has made qualifying third-party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.
Disclosure of information to auditors
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Each of the persons who are
directors at the time when this Directors' report is approved has confirmed that:
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so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
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the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Page 5
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Amphenol Limited
Directors' report (continued)
For the year ended 31 December 2021
Deloitte LLP have expressed their willingness to continue in office as auditor and a resolution to reappoint them as the Company’s auditor will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board on
31 January 2023
and signed on its behalf.
Craig Anthony Lampo
Director
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Page 6
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Amphenol Limited
Directors' responsibilities statement
For the year ended 31 December 2021
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:
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select suitable accounting policies for the Company's financial statements and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 7
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Amphenol Limited
Independent auditors' report to the members of Amphenol Limited
In our opinion the financial statements, of Amphenol Limited (the 'company') :
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give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its profit for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
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the profit and loss account;
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the statement of comprehensive income;
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the balance sheet;
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the statement of changes in equity;
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the related notes 1 to 26.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 (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
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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.
Page 8
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Amphenol Limited
Independent auditors' report to the members of Amphenol Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and ourthereon. 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.
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Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set, 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 is 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
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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 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.
A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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 considered the nature of the Company's industry and its control environment, and reviewed the Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the Company operates in, and identified the key laws and regulations that:
∙had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act, UK tax legislation; and pension legislation; and
Page 9
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Amphenol Limited
Independent auditors' report to the members of Amphenol Limited (continued)
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included health and safety legislation and restriction of the use of certain hazardous substances regulations
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
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reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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
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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 any material misstatements in [the strategic report or] the directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Page 10
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Amphenol Limited
Independent auditors' report to the members of Amphenol Limited (continued)
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 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.
Kim Burge, FCA
(Senior statutory auditor)
for and on behalf of
Deloitte LLP
Statutory Auditor
London
United Kingdom
1 February 2023
Page 11
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Amphenol Limited
Profit and loss account
For the year ended 31 December 2021
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Administrative expenses recharged to group undertakings
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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The notes on pages 17 to 39 form part of these financial statements.
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Page 12
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Amphenol Limited
Statement of comprehensive income
For the year ended 31 December 2021
Profit for the financial year
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Net actuarial movement relating to the pension scheme
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Current tax attributable to net pension deficit contributions
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Deferred tax attributable to net actuarial movement
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Other comprehensive income/(loss) for the year
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Total comprehensive income/(loss) attributable to the equity shareholders of the company
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The notes on pages 17 to 39 form part of these financial statements.
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Page 13
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Amphenol Limited
Registered number:
00784278
Balance sheet
As at
31 December 2021
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Debtors: amounts falling due after more than one year
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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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The financial statements were approved and authorised for issue by the board and were signed on its behalf on
31 January 2023
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The notes on pages 17 to 39 form part of these financial statements.
Page 14
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Statement of changes in equity
For the year ended
31 December 2021
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Profit and loss account - As restated
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Net actuarial movement relating to the pension scheme
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Deferred tax attributable to net actuarial movement
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Current tax attributable to net pension deficit contributions
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Net actuarial movement relating to the pension scheme
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Deferred tax attributable to net actuarial movement
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Total comprehensive income for the year
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Contributions by and distributions to owners
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The notes on pages 17 to 39 form part of these financial statements.
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Page 15
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Statement of changes in equity (continued)
For the year ended
31 December 2021
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Prior year adjustment
In the year ended 31 December 2020 an amount payable to the ultimate parent company, Amphenol Corporation, was incorrectly presented in the statement of other comprehensive income. This amount represented an intragroup recharge payable to Amphenol Corporation in respect of the share-based payment scheme operated by Amphenol Corporation on behalf of the employees of the group. It should therefore have been accounted for as a distribution in equity and not in other comprehensive income. The directors consider that this recharge does not amount to a distribution at law as there is a commercial basis for the charge.
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Page 16
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
Amphenol Limited is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and registered in England and Wales. The address of the registered office is given on the 'Company Information' page. The nature of the Company’s operations and its principal activity is set out in the Strategic report and Directors’ report on pages 1 and 2 and pages 3 - 6 respectively.
The financial statements have been prepared under the historical cost convention, and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.
The functional currency of Amphenol Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
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the requirements of Section 7 Statement of Cash Flows;
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the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
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the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
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the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
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the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
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the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Amphenol Corporation as at 31 December 2021 and these financial statements may be obtained from 358 Hall Avenue, Wallingford Connecticut, USA, or can be found online at www.amphenol.com..
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Prior year adjustment - loans to subsidiaries
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In the prior year, loans to subsidiaries totalling £24,221,000 had been classified as current assets. These amounts represent monies paid to other group companies to provide financing for investments on a continuing basis, have no set repayments dates and are unlikely to be repaid in the near future. Due to this these amounts were incorrectly classified and should have been recognised as fixed assets investments. The comparative information for the year ended 31 December 2020 has been adjusted to reflect this, with notes 12 and 14 adjusted accordingly.
Page 17
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
The Company’s business together with the factors likely to affect its future development, performance and position are set out in the Strategic report. The Directors’ report describes the Company’s financial risk management objectives and its exposure to cash flow, credit and liquidity risks.
The Company makes use of its ultimate parent company, Amphenol Corporation, treasury department in respect of interest rate risk and exchange rate risk. Credit risk is managed through the use of external credit reference agencies. The Company does not enter into speculative derivative transactions.
The Company has no loans from external sources. In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses short-term debt finance from its parent undertakings. Although the business is in a net current liability position which is driven by funding received from the group and due back to the group, a letter of support has been received confirming that the group will provide financial support to enable Amphenol to continue trading without material curtailment and settle its debts as they fall due for at least 12 months from the singing of the financial statements.
In considering current budgets and long-term forecasts, the directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least 12 months from this date. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements.
Turnover represents amounts derived from the provision of goods and services which fall within the Company’s ordinary activities and comprises the invoiced cost of goods sold during the year, excluding value added tax, and net of trade discounts. The Company’s policy is to recognise a sale when the significant risks and rewards in connection with the goods are considered to have been passed to the buyer.
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Dividend and interest revenue (after Turnover)
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Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established (provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably).
Interest income is recognised when it is probable that the economic benefits will flow to the group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
In various circumstances the Company can be entitled to and has been in receipt of a number of different grants and financial support packages from various government bodies across the territories in which it operates. The Company looks to apply Section 24 of FRS 102, The Financial Reporting Standard for the UK and Republic of Ireland for entities reporting under UK GAAP.
Grants are accounted for under the accruals model as permitted by FRS 102. All grants received are of a revenue nature and are recognised in “other income” within profit or loss in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme (‘Furlough’). The Company has not directly benefited from any other forms of government assistance.
Page 18
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
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.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
(i) Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
Page 19
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
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Financial instruments (continued)
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c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a)
(i) Financial assets and liabilities (continued)
d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
Debt instruments which comply with all of the condition of paragraph 11.9 of FRS 102 are classified as 'basic'. For debt instruments that do not meet the conditions of FRS 102.11.9, it is considered whether the debt instrument is consistent with the principle in paragraph 11.9A of FRS 102 in order to determine whether it can be classified as basic. Instruments classified as 'basic' financial instruments are subsequently measured at amortised cost using the effective interest method.
Debt instruments that have no stated interest rate (and do not constitute financing transaction) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting conditions of being 'basic' financial instruments are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
(ii) Investments
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 20
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Cost is calculated using the FIFO (first-in, first-out) method. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing, selling and distribution costs. Provision is made for obsolete, slow-moving or defective items where appropriate.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Research and development expenditure is written off as incurred.
Page 21
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
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Current and deferred taxation
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Current tax, including UK corporation tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the Company’s taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to sale of the asset.
Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Page 22
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Monetary assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the transaction. These translation differences are dealt with in the Profit and loss account..
For defined benefit schemes, the amounts charged to operating profit are the costs arising from employee services rendered during the period and the cost of plan benefit changes and settlements. They are included as part of staff costs. The net interest cost on the net defined benefit liability is charged to profit or loss and included within finance costs. Remeasurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in other comprehensive income.
Defined benefit schemes are funded with the assets of the scheme held separately from those of the Company in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The difference between the market value of the assets of the scheme and the present value of accrued pension liabilities is shown as an asset or liability on the balance sheet net of deferred tax.
For defined contribution schemes, the amount charged to the profit and loss account in respect of pension costs and other retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 23
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Page 24
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company’s accounting policies
The directors do not consider there to be any critical judgements in applying the Company’s accounting policies.
Key source of estimation uncertainty
Stock obsolescence provision
Stock that is held within the Company is subject to an obsolescence provision of £739,000 (2020: £667,000) for items in which supply exceeds demand. In order to calculate the obsolescence provision, there is the need to estimate the forecast level of demand in the upcoming 12 months from the date in which the obsolescence provision is calculated. This forecast demand is uncertain, and, is based on management’s best estimate at that point in time.
Impairment of investments in subsidiaries
Determining whether investments in subsidiaries are impaired requires an estimation of the value-in-use of the subsidiaries held as investments within the Company. The value-in-use calculation requires the entity to estimate the future cash flows expected to arise from the subsidiaries over the long-term and a suitable discount rate in order to calculate present value, which requires a high level of judgement given the period under assessment. The directors have considered that the appropriate period for assessing the value in use to be 30 years, with a pre-tax discount rate of 10.4% applied on all investments held in subsidiaries. There were no impairments this year and therefore the value of the investments is held by the Company at £98,049k (2020: £98,049k).
Turnover represents amounts derived from the sale of goods which fall within the Company’s ordinary activities after deduction of trade discounts and value added tax. An analysis of the Company’s turnover by geographical market is set out below.
Page 25
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Information regarding directors and employees
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No directors remuneration has been paid in the current or preceding financial year.
No apportionment was made to the Company in respect of qualifying services. This information can be found in the group consolidated financial statements which can be obtained using the information on page 17.
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Their aggregate remuneration comprised:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Pension costs include £nil (2020 - £nil) of current service cost measured in accordance with Section 28 of FRS 102, but exclude finance costs and amounts recognised in other comprehensive income.
In the year £235,000 (2021: £176,000) was received from HM Government from the Coronavirus Job Retention Scheme in government subsidiaries in relation to staff members who had been furloughed as a result of the pandemic. This is shown as other income on page 12.
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The operating profit is stated after charging:
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Depreciation: owned assets
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Amortisation: owned assets
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Page 26
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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During the year, the Company obtained the following services from the Company's auditor:
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Fees payable to the Company's auditor for the audit of the Company's annual financial statements
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In the year ended 31 December 2021 there were no fees for non-audit services paid to the Company's auditors, this was also the case for the prior year.
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Interest receivable and similar income
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Loan interest payable to group company
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Net pension interest expense (note 22)
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustment in respect of previous years
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Taxation on profit on ordinary activities
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Page 27
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
9.
Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is the same as the standard rate of corporation tax in the UK of 19% (2020 - 19%) as set out below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Adjustments to tax charge in respect of prior periods
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Depreciation on ineligible assets
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Total tax charge for the year
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Factors that may affect future tax charges
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The closing deferred tax asset and liability has been calculated at 19% reflecting the rate that was substantively enacted at the balance sheet date.
At Budget 2020 on 11 March 2020, the government announced that the Corporation Tax main rate (for all profits except ring fence profits) for the years starting 1 April 2020 and 2021 would remain at 19%. In the March 2021 Budget, it was announced that the UK tax rate will go up from the current 19% to 25% from 1 April 2023. As substantive enactment is after the balance sheet date, the deferred tax balances as at 31 December 2020 continue to be measured at a rate of 19%. The use of the new tax rate would have had no impact on the above net deferred tax asset.
Page 28
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Freehold land and buildings
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Transfers between classes
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Charge for the year on owned assets
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Included within the cost of freehold land and buildings is land of £42,000 (2020 - £42,000).
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Page 29
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Charge for the year on owned assets
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Intangible assets are amortised over a 4 year period. All intangible assets relate to IT software and it is expected that this software will be obsolete after a 4 year period.
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Investments in subsidiary companies
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Cost or valuation - as restated
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Page 30
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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The following were subsidiary undertakings of the Company:
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Manufacture of wireless infrastructure antenna solutions
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Manufacturing of wiring devices
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Amphenol Thermometrics UK Limited
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Manufacture of thermistors and surge protection devices
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Amphenol-Borg Pension Trustees Limited
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Manufacture of hermetics solutions
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SGX Sensortech (IS) Limited
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Manufacture of sensors and modules
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Manufacturer of inert wiring harnesses
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(1) Rutherford Drive, Parkfarm South, Wellingborough, Northants, NN8 6AX.
(2) Prospect House, Taylor Business Park, Risley, Warrington, WA3 6HP.
(3) Thanet Way, Whitstable, Kent, CT5 3JF
(4) Pipers Garth, Marton, Hull, East Yorkshire, HU11 5DA
Subsidiary undertakings have not been consolidated by Amphenol Limited as permitted by s.401 of the Companies Act 2006 as they are consolidated in the financial statements of Amphenol Corporation
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Raw materials and consumables
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Work in progress (goods to be sold)
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Finished goods and goods for resale
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Page 31
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Due after more than one year
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Deferred tax asset on pension liability
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Amounts owed by group undertakings
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Corporation tax receivable
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Prepayments and accrued income
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Amounts owed by group company undertakings are unsecured and have no fixed date of repayment.
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Cash and cash equivalents
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Page 32
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed by group company undertakings include £65.1m UK cash pool arrangement and are unsecured, bear interest daily at rate of 3-month LIBOR +0.3% and have no fixed date of repayment. £15m relates to an Intercompany loan from Amphenol East Asia Ltd with an interest rate of 3%pa. Maturity date is 5 September 2022.
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Page 33
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Deferred taxation relates to accelerated capital allowances of £520,000 (2020: £383,000)
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Other provision for liabilities
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Other provisions for liabilities relate to product warranty provisions
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Allotted, called up and fully paid
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4,079,139
(2020 -
4,079,139
)
Ordinary shares
shares of £
1.00
each
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Page 34
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
Share premium account
The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.
Profit and loss account
The profit and loss reserve represents cumulative profits or losses, including unrealised profit on the remeasurement of investment properties, net of dividends paid and other adjustments.
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In 2009, the Company adopted the 2009 Stock Purchase and Option Plan for Key Employees of Amphenol and its Subsidiaries (the “2009 Employee Option Plan”). The Company also continues to maintain the 2000 Stock Purchase and Option Plan for Key Employees of Amphenol and Subsidiaries (the “2000 Employee Option Plan”). No additional stock options can be granted under the 2000 Employee Option Plan. Options granted under the 2000 Employee Option Plan and the 2009 Employee Option Plan generally vest ratably over a period of five years and are generally exercisable over a period of ten years from the date of grant. Vesting of the options is generally subject to continued employment at Amphenol or its subsidiaries. Annual awards of stock option grants have historically been granted in the second quarter of each year. Newly hired or promoted executive officers or key management employees have on occasion received an award of stock options at or near the date of appointment. The Company does not grant stock options with an exercise price that is less than the closing price of the Common Stock on the grant date.
The amount recharged to Amphenol Limited in the year in respect of the share options exercised by employees was £537k (2020: £616k) and is accounted for as a deemed distribution to the parent.
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Page 35
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
The Company operates a defined benefit pension scheme.
The Company participates in the Amphenol Pension Plan. The scheme is a defined benefit plan, operated by the Company, providing benefits to certain employees within the Company based on final pensionable pay. The assets are held separately to the Company’s assets and are invested with Legal & General, Schroder, AXA, Invesco and Standard Life Investments.
The Company closed the defined benefit plan to future accrual as at 31 December 2009 after full and open consultation with its employees and replaced this with a defined contribution plan. The Company will continue to make payments into the defined benefit plan to reduce the deficit in line with the agreed plan. Total employer contributions for the year ended 31 December 2021 paid into the scheme was £1,148,000 (2020: £1,095,000).
The Company operates a defined benefit scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 31 December 2019 by a qualified actuary, independent of the scheme’s sponsoring employer.
The most recent actuarial valuation as at 31 December 2019 showed a deficit of £15,386,000. The Company has agreed with the trustees that it will aim to eliminate the deficit over a period of 11 years and 3 months from 1 April 2018 by the payment of monthly contributions of £91,250 in respect of the deficit. In addition, and in accordance with the actuarial valuation, the Cmpany has agreed with the trustees that it will meet expenses of the scheme and levies payable to the Pension Protection Fund.
The costs associated with the defined contribution section are charged to the Profit and loss account in the year they are payable.
The fair value of the assets and the present value of the liabilities in the schemes and the expected rate of return at each balance sheet date were:
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Movements in the present value of defined benefit liabilities were as follows:
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At the beginning of the year
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Amounts included as finance costs:
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Net interest cost (note 8)
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Page 36
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
22.
Pension commitments (continued)
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Movements in the present value of scheme assets were as follows:
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At the beginning of the year
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Contributions from employer
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Composition of plan assets:
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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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Amounts included in other comprehensive income:
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Amounts included in other comprehensive income
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Experience gains arising on scheme liabilities
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Effects of charges in assumptions underlying the present value of scheme liabilities
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Total actuarial gains/(losses) recognised in other comprehensive income
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Page 37
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
22.
Pension commitments (continued)
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
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Rate of increase in pensions in payment
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Inflation assumption (RPI%)
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Investigations have been carried out within the past three years into the mortality experience of the Company’s defined benefit scheme. These investigations concluded that the current mortality assumptions include sufficient allowance for future improvements in mortality rates. Using PNMA00 and PNFA00 (year of birth) tables, the assumed life expectations on retirement at age 65 are noted in the table above.
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Commitments under operating leases
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At 31 December 2021 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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Page 38
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Amphenol Limited
Notes to the financial statements
For the year ended 31 December 2021
24.
Other financial commitments
The Company has given a guarantee to HM Revenue & Customs of £500,000 (2020: £500,000) in the normal course of business with regards to the deferral of duty and VAT on imports.
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Related party transactions
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Under the provision of Section 33 of Financial Reporting Standard 102 “Related party disclosures”, the Company has taken advantage of the exemption from disclosing transactions with other wholly owned members of the group headed by Amphenol Corporation.
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The immediate parent company is Amphenol-Borg Limited, incorporated in England and Wales.
The ultimate parent company and controlling entity is Amphenol Corporation, a company incorporated in the United States of America, which is the smallest and largest group of which the Company is a member and for which consolidated financial statements are available. Copies of those consolidated financial statements can be obtained from the principal place of business address of Amphenol Corporation, 358 Hall Avenue, Wallingford, Connecticut, CT06492, USA.
Page 39
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