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REGISTERED NUMBER: 01005969 (England and Wales)















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: R R Azmeh
L Lovatt
N L Azmeh



SECRETARY: L Lovatt



REGISTERED OFFICE: Richmond House
Richmond Grove
Manchester
M13 0LN



REGISTERED NUMBER: 01005969 (England and Wales)



AUDITORS: DTE Business Advisers Limited
Chartered Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN



BANKERS: HSBC Bank plc
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 4 909,344 610,859

CURRENT ASSETS
Inventories 1,968,864 1,914,126
Debtors 5 3,301,931 2,656,279
Investments 6 213,421 208,950
Cash at bank and in hand 90,330 794,441
5,574,546 5,573,796
CREDITORS
Amounts falling due within one year 7 (669,338 ) (766,537 )
NET CURRENT ASSETS 4,905,208 4,807,259
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,814,552

5,418,118

PROVISIONS FOR LIABILITIES (123,682 ) -
NET ASSETS 5,690,870 5,418,118

CAPITAL AND RESERVES
Called up share capital 51,935 51,935
Revaluation reserve 512,374 324,635
Other reserves 12,330 27,882
Retained earnings 5,114,231 5,013,666
SHAREHOLDERS' FUNDS 5,690,870 5,418,118

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 16 August 2022 and were signed on its behalf by:





R R Azmeh - Director


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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Land and buildings - 2% straight line on valuation
Plant and machinery etc - 25% on reducing balance, 20% on cost and 15% on reducing balance

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 15 (2021 - 15 ) .

4. PROPERTY, PLANT AND EQUIPMENT
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST OR VALUATION
At 1 March 2021 550,000 15,513 45,125
Additions - - -
Disposals - - -
Revaluations 250,000 - -
At 28 February 2022 800,000 15,513 45,125
DEPRECIATION
At 1 March 2021 51,345 4,669 30,657
Charge for year 10,269 1,627 3,617
Eliminated on disposal - - -
Revaluation adjustments (61,614 ) - -
At 28 February 2022 - 6,296 34,274
NET BOOK VALUE
At 28 February 2022 800,000 9,217 10,851
At 28 February 2021 498,655 10,844 14,468

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 139,010 230,870 35,578 1,016,096
Additions 554 31,250 3,355 35,159
Disposals - (13,999 ) - (13,999 )
Revaluations - - - 250,000
At 28 February 2022 139,564 248,121 38,933 1,287,256
DEPRECIATION
At 1 March 2021 126,641 171,692 20,233 405,237
Charge for year 1,938 22,459 7,787 47,697
Eliminated on disposal - (13,408 ) - (13,408 )
Revaluation adjustments - - - (61,614 )
At 28 February 2022 128,579 180,743 28,020 377,912
NET BOOK VALUE
At 28 February 2022 10,985 67,378 10,913 909,344
At 28 February 2021 12,369 59,178 15,345 610,859

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 100,498
Transfer to ownership (100,498 )
At 28 February 2022 -
DEPRECIATION
At 1 March 2021 68,824
Charge for year 6,644
Transfer to ownership (75,468 )
At 28 February 2022 -
NET BOOK VALUE
At 28 February 2022 -
At 28 February 2021 31,674

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 2,847,573 2,033,363
Other debtors 418,536 607,115
Deferred tax asset - 2,030
Prepayments 35,822 13,771
3,301,931 2,656,279

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 29,686 -
Hire purchase contracts (see note 8) - 50,542
Trade creditors 168,172 210,587
Corporation tax 39,060 108,652
Social security and other taxes 142,669 85,267
Other creditors 133,154 57,266
Director's loan account 91,113 35,281
Accruals 65,484 218,942
669,338 766,537

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2022 2021
£    £   
Gross obligations repayable:
Within one year - 51,388

Finance charges repayable:
Within one year - 846

Net obligations repayable:
Within one year - 50,542

Non-cancellable operating leases
2022 2021
£    £   
Within one year 1,466 1,466
Between one and five years 2,932 4,398
4,398 5,864

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 29,686 -
Hire purchase contracts - 50,542
29,686 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.

Fiona O'Loughlin (Senior Statutory Auditor)
for and on behalf of DTE Business Advisers Limited