REGISTERED NUMBER: |
K.AZMEH (TEXTILES) LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022 |
REGISTERED NUMBER: |
K.AZMEH (TEXTILES) LIMITED |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2022 |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 |
K.AZMEH (TEXTILES) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
BANKERS: |
2-4 St Ann's Square |
Manchester |
M2 7HD |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
STATEMENT OF FINANCIAL POSITION |
28 FEBRUARY 2022 |
2022 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 4 |
CURRENT ASSETS |
Inventories |
Debtors | 5 |
Investments | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Revaluation reserve |
Other reserves |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
1. | STATUTORY INFORMATION |
K.Azmeh (Textiles) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 01005969 and the company's registered office address is Richmond House, Richmond Grove, Manchester, M13 0LN. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
During the year the company achieved profit before tax of £143,970 (2021: £513,286) and at the year end had net assets of £5,690,870 (2021: £5,418,118). |
The company has in place an overdraft facility to meet working capital requirements. However, at the year end the company had net cash reserves of £90,330 (2021: £794,441). |
The directors have considered the impact of the Covid-19 pandemic on the company and recognise that the future cannot be predicted with certainty. Procedures have been introduced to ensure that operations conducted are in accordance with official government advice. As a result the company continued to trade throughout the pandemic. Post year end the company is trading profitably. The company has cash reserves and has available a bank overdraft facility if required. |
The directors have considered the business risks and believe that the company is well placed to manage these risks successfully. As such, they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Revenue |
Revenue comprises the aggregate of the fair value of the sale of goods provided, net of value-added tax, rebates and discounts. Sales of goods are recognised when the company delivers products to the customer, the customer has accepted the products and the collectability of the related receivables is fairly assured. |
Property, plant and equipment |
Land and buildings | - |
Plant and machinery etc | - |
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
In accordance with FRS 102, land is not depreciated. |
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. |
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss. |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Grant income that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable. |
Inventories |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is derived from actual purchase price. Net realisable value is based on the estimated selling price less further costs expected to be incurred in realising the items in question. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the contracted 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. |
Hire purchase and leasing commitments |
Assets that are held by the company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in the income statement. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates two defined contribution pension schemes. Contributions payable for the year are charged to the income statement. |
Critical accounting estimates and judgements |
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
The directors use judgement to provide against bad debts using knowledge of customers and experience. These provisions are revisited after the statement of financial position date to ensure they are appropriate. |
Determining the fair value and residual value of freehold property is considered a key judgement. |
Making judgement based on historical experience on the level of provision required for impairment of inventories. Further information received after the statement of financial position date may impact on the level of provision required. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short term liquid investments with original maturities of three months or less. |
Dividends paid |
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company. |
Income from fixed asset investments |
Income from fixed asset investments is received in the form of dividends and is credited to the income statement when received. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
Investments |
Current asset investments are stated at fair value. The fair value of listed investments is based on the market price on a recognised stock exchange. Changes in fair value are recognised in the income statement and provision is made for the related deferred tax. |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | PROPERTY, PLANT AND EQUIPMENT |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2021 |
Additions |
Disposals |
Revaluations |
At 28 February 2022 |
DEPRECIATION |
At 1 March 2021 |
Charge for year |
Eliminated on disposal |
Revaluation adjustments | ( |
) |
At 28 February 2022 |
NET BOOK VALUE |
At 28 February 2022 |
At 28 February 2021 |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
4. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2021 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 28 February 2022 |
DEPRECIATION |
At 1 March 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Revaluation adjustments | ( |
) |
At 28 February 2022 |
NET BOOK VALUE |
At 28 February 2022 |
At 28 February 2021 |
Cost or valuation at 28 February 2022 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2016 | 184,459 | - | - |
Valuation in 2022 | 250,000 | - | - |
Cost | 365,541 | 15,513 | 45,125 |
800,000 | 15,513 | 45,125 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2016 | - | - | - | 184,459 |
Valuation in 2022 | - | - | - | 250,000 |
Cost | 139,564 | 248,121 | 38,933 | 852,797 |
139,564 | 248,121 | 38,933 | 1,287,256 |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
4. | PROPERTY, PLANT AND EQUIPMENT - continued |
If freehold land & buildings had not been revalued they would have been included at the following historical cost: |
2022 | 2021 |
£ | £ |
Cost | 365,541 | 365,541 |
Aggregate depreciation | 210,967 | 204,387 |
Value of land in freehold land and buildings | 36,554 | 36,554 |
Freehold land and buildings were valued on an open market basis on 28 February 2022 by the directors . |
The directors are of the opinion that the valuation in 2022 represents fair value at the statement of financial position date. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1 March 2021 |
Transfer to ownership | (100,498 | ) |
At 28 February 2022 |
DEPRECIATION |
At 1 March 2021 |
Charge for year |
Transfer to ownership | (75,468 | ) |
At 28 February 2022 |
NET BOOK VALUE |
At 28 February 2022 |
At 28 February 2021 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors | 418,536 | 607,115 |
Deferred tax asset |
Prepayments |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
6. | CURRENT ASSET INVESTMENTS |
2022 | 2021 |
£ | £ |
Listed investments | 213,421 | 208,950 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 8) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Director's loan account | 91,113 | 35,281 |
Accruals |
8. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Gross obligations repayable: |
Within one year |
Finance charges repayable: |
Within one year |
Net obligations repayable: |
Within one year |
Non-cancellable | operating leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
K.AZMEH (TEXTILES) LIMITED (REGISTERED NUMBER: 01005969) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2022 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank overdraft |
Hire purchase contracts | - | 50,542 |
The hire purchase contracts were secured on the assets to which they relate. |
The bank overdraft is secured by way of a fixed charge and negative pledge against the company's assets. |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |