REGISTERED NUMBER: 13362716 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
JAIN GLOBAL HOLDINGS LIMITED |
REGISTERED NUMBER: 13362716 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
JAIN GLOBAL HOLDINGS LIMITED |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
JAIN GLOBAL HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
RESULTS |
The consolidated income statement is set out on page 8 and shows the consolidated profit for the period. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the period under review was that of wholesaling childrens' clothing and rental of commercial and residential properties. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
Group turnover for the year ended 31 December 2022 reduced by 21.66% to £9,698,918 from the prior year. Group EBITDA, before gains on asset revaluations, was £1,535,070 for the year, which was a reduction of 43.50% from the prior year. The group's consolidated balance sheet on page 10 shows the financial position at the year end. |
In March 2020, The World Health Organization declared a global pandemic due to the novel coronavirus (COVID-19). The lockdown measures introduced in 2020 to contain the spread of the virus continued to impact 2022 via the supply chain of goods. |
The directors look forward to an improvement in trading conditions as the impact of the covid pandemic recedes and, in particular, an easing in the accelerated global freight costs being normalised to pre-pandemic levels. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties faced by the Group are as follows: |
- Foreign exchange variance due to a general weakness in pound sterling |
- Financing risk associated with the Group's bank borrowings |
KEY PERFORMANCE INDICATORS |
The directors manage the business on key indicators of turnover, gross margin, and EBITDA. Furthermore the directors are constantly reviewing suppliers and stock levels to ensure margins are maintained and goods are available to satisfy customers' demands. |
As stated above, during the year Turnover decreased by 21.66% and EBITDA by 43.50%, due to the continuing impact of the COVID pandemic. Gross margin was reduced by 1.01%. |
ON BEHALF OF THE BOARD: |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
Interim dividends totalling £86,000 (2021: £78,000) were paid by Jain Global Holdings Limited. No final dividend will be paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2022 |
AUDITORS |
The auditors, Oury Clark Chartered Accountants, are deemed to be re-appointed under Section 487 (2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JAIN GLOBAL HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Jain Global Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be misstated. If we identify such inconsistencies or apparent 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 misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JAIN GLOBAL HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In light of the knowledge and understanding of the group and company and its environment obtained in the course of the audit, we have not identified any matters in the Group Strategic Report or the Report of the Directors that are inconsistent with our overall view of the financial statements. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JAIN GLOBAL HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential irregularities, including fraud |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- Considering the nature of the industry, sector, control environment and current business activities, including possible performance targets and subsequent remuneration. |
- Enquiring of management concerning policies and procedures relating to: |
1. Complying with laws and regulations and whether there were any instances of non-compliance; |
2. Mitigating, detecting and responding to fraud risk and whether there has been any actual or possible instances of fraud. |
- Discussing within the engagement team and internal specialists where necessary, regarding how and where fraud may occur in the financial statements along with the possible indicators of fraud. We identified the following as the areas most most likely to be susceptible to fraud: |
1. Valuation of investment property; |
2. Revenue recognition; |
3. Management override; |
4. Misappropriation of stock. |
- Discussing within the engagement team and internal specialists where necessary, the legal and regulatory framework in which the company operates and in particular those which would have an impact on the financial statements. The key laws and regulations considered were the Companies Act 2006 and UK tax legislation. |
Audit response to the risks identified |
As noted above, we identified the following as the matters that would most likely be susceptible to fraud: |
1. Valuation of investment property; |
2. Revenue recognition; |
3. Management override; |
4. Misappropriation of stock. |
Our procedures to respond to these risks included the following: |
1. Inspection of valuation reports for all property revaluations in relation to company owned assets. |
2. Testing a sample of sales made in the period to ensure that they are being treated correctly for VAT purposes, and are being recognised in a manner which reflects the underlying transaction and period in which the service is provided; |
3. Reviewing the nominal ledger for any evidence of management override, or transactions outside the course of normal business; |
4. Testing for existence and completeness during visits to multiple locations where the company's stocks are held. |
Further, we also identified compliance with the Companies Act 2006 and UK tax legislation as being key areas where there may be possible non-compliance. Our procedures to respond to these risks included the following: |
1. Review the disclosures in the financial statements and testing supporting documentation to assess compliance with the Companies Act 2006; |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JAIN GLOBAL HOLDINGS LIMITED |
2. Safeguard review of the accounts by a qualified accountant not associated with the audit team, and of the corporation tax by a Chartered Tax Adviser not associated with the audit team; |
3. A review of expenses for any items not allowable for UK corporation tax, and to ensure the tax computation complies with UK tax legislation. |
The above matters and identified laws and regulations and potential fraud risks were communicated to all engagement team members, in order to enable the team to have the ability to identify such risks. The whole team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
There are inherent limitations in the audit procedures described above and the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Herschel House |
58 Herschel Street |
Slough |
Berkshire |
SL1 1PG |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
TURNOVER | 4 | 9,698,918 | 12,380,893 |
Cost of sales | 6,405,308 | 8,050,998 |
GROSS PROFIT | 3,293,610 | 4,329,895 |
Administrative expenses | 1,967,360 | 1,955,897 |
1,326,250 | 2,373,998 |
Other operating income | 184,764 | 146,658 |
OPERATING PROFIT | 6 | 1,511,014 | 2,520,656 |
Interest receivable and similar income | 216 | - |
1,511,230 | 2,520,656 |
Gain/loss on revaluation of assets | 400,000 | 250,000 |
1,911,230 | 2,770,656 |
Interest payable and similar expenses | 7 | 88,844 | 22,563 |
PROFIT BEFORE TAXATION | 1,822,386 | 2,748,093 |
Tax on profit | 8 | 522,614 | 559,082 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,299,772 | 2,189,011 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,299,772 | 2,189,011 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 2,189,011 |
Note |
Prior year adjustment | 11 | (179,275 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT | 1,120,497 |
Total comprehensive income attributable to: |
Owners of the parent | 1,120,497 | 2,189,011 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONSOLIDATED BALANCE SHEET |
31 December 2022 |
31.12.22 | 31.12.21 | 1.1.21 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 136,194 | 181,592 | - |
Tangible assets | 13 | 1,237,957 | 1,237,942 | 1,242,188 |
Investments | 14 | - | - | - |
Investment property | 15 | 7,891,122 | 7,413,115 | 4,674,364 |
9,265,273 | 8,832,649 | 5,916,552 |
CURRENT ASSETS |
Stocks | 16 | 777,952 | 306,892 | 221,184 |
Debtors | 17 | 3,981,898 | 4,193,710 | 2,522,312 |
Cash at bank and in hand | 1,290,406 | 1,876,354 | 3,964,015 |
6,050,256 | 6,376,956 | 6,707,511 |
CREDITORS |
Amounts falling due within one year | 18 | (1,757,187 | ) | (3,277,324 | ) | (2,570,583 | ) |
NET CURRENT ASSETS | 4,293,069 | 3,099,632 | 4,136,928 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 13,558,342 | 11,932,281 | 10,053,480 |
CREDITORS |
Amounts falling due after more than one year | 19 | (2,181,703 | ) | (2,003,191 | ) | (2,256,820 | ) |
PROVISIONS FOR LIABILITIES | 23 | (547,401 | ) | (313,624 | ) | (265,533 | ) |
NET ASSETS | 10,829,238 | 9,615,466 | 7,531,127 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 5,328 | 5,328 | - |
Other reserves | 25 | 1,530,814 | 1,328,407 | 1,127,307 |
Retained earnings | 25 | 9,293,096 | 8,281,731 | 6,403,820 |
SHAREHOLDERS' FUNDS | 10,829,238 | 9,615,466 | 7,531,127 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by: |
V Jain - Director |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
COMPANY BALANCE SHEET |
31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 380,196 | 2,146,136 |
The financial statements were approved by the Board of Directors and authorised for issue on |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | - | 6,403,820 | 1,127,307 | 7,531,127 |
Changes in equity |
Issue of share capital | 5,328 | - | - | 5,328 |
Dividends | - | (110,000 | ) | - | (110,000 | ) |
Total comprehensive income | - | 2,167,186 | 201,100 | 2,368,286 |
Balance at 31 December 2021 | 5,328 | 8,461,006 | 1,328,407 | 9,794,741 |
Prior year adjustment | - | (179,275 | ) | - | (179,275 | ) |
As restated | 5,328 | 8,281,731 | 1,328,407 | 9,615,466 |
Changes in equity |
Dividends | - | (86,000 | ) | - | (86,000 | ) |
Total comprehensive income | - | 1,097,365 | 202,407 | 1,299,772 |
Balance at 31 December 2022 | 5,328 | 9,293,096 | 1,530,814 | 10,829,238 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - | 380,196 | 380,196 |
Balance at 31 December 2022 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 316,915 | 1,212,694 |
Interest paid | (88,844 | ) | (22,563 | ) |
Tax paid | (411,739 | ) | (530,142 | ) |
Net cash from operating activities | (183,668 | ) | 659,989 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (181,592 | ) |
Purchase of tangible fixed assets | (19,309 | ) | (14,908 | ) |
Purchase of investment property | (752,371 | ) | (2,488,751 | ) |
Sale of tangible fixed assets | - | 2,250 |
Sale of investment property | 715,000 | - |
Government grants received | - | 34,884 |
Interest received | 216 | - |
Net cash from investing activities | (56,464 | ) | (2,648,117 | ) |
Cash flows from financing activities |
New loans in year | 510,000 | - |
Loan repayments in year | (292,473 | ) | (144,400 | ) |
Net amounts repaid by directors | 26,500 | (301,419 | ) |
Amount withdrawn by directors | (63,069 | ) | - |
Share issue | - | 5,328 |
Equity dividends paid | (86,000 | ) | (110,000 | ) |
Net cash from financing activities | 94,958 | (550,491 | ) |
Decrease in cash and cash equivalents | (145,174 | ) | (2,538,619 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,425,343 | 3,963,962 |
Cash and cash equivalents at end of year | 2 | 1,280,169 | 1,425,343 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Profit before taxation | 1,822,386 | 2,748,093 |
Depreciation charges | 64,691 | 19,154 |
Profit on disposal of fixed assets | (40,636 | ) | (2,250 | ) |
Gain on revaluation of fixed assets | (400,000 | ) | (250,000 | ) |
Government grants | - | (34,884 | ) |
Finance costs | 88,844 | 22,563 |
Finance income | (216 | ) | - |
1,535,069 | 2,502,676 |
Increase in stocks | (471,060 | ) | (85,708 | ) |
Decrease/(increase) in trade and other debtors | 228,130 | (1,645,727 | ) |
(Decrease)/increase in trade and other creditors | (975,224 | ) | 441,453 |
Cash generated from operations | 316,915 | 1,212,694 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,290,406 | 1,876,354 |
Bank overdrafts | (10,237 | ) | (451,011 | ) |
1,280,169 | 1,425,343 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,876,354 | 3,964,015 |
Bank overdrafts | (451,011 | ) | (53 | ) |
1,425,343 | 3,963,962 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,876,354 | (585,948 | ) | 1,290,406 |
Bank overdrafts | (451,011 | ) | 440,774 | (10,237 | ) |
1,425,343 | (145,174 | ) | 1,280,169 |
Debt |
Debts falling due within 1 year | (253,726 | ) | (39,015 | ) | (292,741 | ) |
Debts falling due after 1 year | (2,003,191 | ) | (178,512 | ) | (2,181,703 | ) |
(2,256,917 | ) | (217,527 | ) | (2,474,444 | ) |
Total | (831,574 | ) | (362,701 | ) | (1,194,275 | ) |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Jain Global Holdings Limited is a |
The trading address of the company is 10 Wellcroft Road, Slough, SL1 4AQ. |
2. | STATEMENT OF COMPLIANCE |
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" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period in excess of twelve months from the date of the audit report on these financial statements. Therefore, the directors continue to adopt the going concern basis in preparing the financial statements. |
Basis of consolidation |
The group has prepared consolidated financial statements including the results of all of its directly wholly owned subsidiaries. The financial statements of all subsidiaries are made up to 31 December 2022 and their results for that period have been included in the consolidated financial statements. |
All inter-company trading and indebtedness have been eliminated from the consolidated financial statements. |
Jain Global Holdings Limited was incorporated on 28 April 2021. In line with merger accounting, it presented consolidated results for a full 12 month period to 31 December 2021. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Depreciation - management uses judgement to estimate the useful lives and residual value of depreciating tangible fixed assets. |
Deferred tax - management uses judgement to estimate the tax rate expected to apply to the reversal of timing differences. |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Rental income is recognised on a time basis over the period covered. Service income is recognised on provision of the management service. |
Turnover relates to the wholesale of clothing and footwear, rental income from investment properties, and service income from the provision of property management. |
The three main streams of revenue from wholesale of clothes and footwear are: |
1. Licensing |
2. Own Brand |
3. 'Free to Sell' |
Turnover relating to the sale of goods in the period can be categorised as FOB (Free on Board), and non-FOB. |
FOB sales are recognised at the point of shipment, when the buyer assumes all risks and rewards associated with the goods. |
Non-FOB sales are recognised when the contractual obligations are met in line with underlying purchase orders and terms. This can be at the point of provision to a third party courier, or upon delivery of goods to the customer. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax, and other sales taxes. |
Intangible assets |
Intangible assets relate to software development costs which are shown at cost less amortisation. |
Amortisation is only charged when the software is brought into use and is recognised on a straight line basis over 4 years. |
Tangible fixed assets |
Plant and machinery | - |
Freehold property is shown at cost less impairment. The directors conduct an impairment review each year and any impairment is charged to the Income Statement in the year in which it is identified. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stock is measured on the FIFO basis. |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 the 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 |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Basic financial instruments, as covered by Section 11 of FRS 102, are measured at amortised cost. The company does not have any Other Financial Instruments, as covered by Section 12 of FRS 102. |
Fixed asset investments |
Fixed asset investments relate to investments by the parent company in its subsidiaries and are stated at cost, together with subsequent capital contributions, less provisions for any impairment in value. |
Cash flow statement |
The cash flow statement has been prepared on the indirect basis. |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Wholesale of clothing | 9,415,740 | 11,421,126 |
Distribution fees | - | 688,413 |
Rental & service charge income | 283,178 | 271,354 |
9,698,918 | 12,380,893 |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Wages and salaries | 1,000,335 | 1,034,870 |
Social security costs | 114,176 | 87,632 |
Other pension costs | 21,244 | 16,944 |
1,135,755 | 1,139,446 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
Sales and administration |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Directors' remuneration | 21,600 | 21,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
2 directors belong to the Group pension scheme. Contributions paid on their behalf during the year were £40,000 (2021: £40,000). |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Other operating leases | 43,000 | 14,333 |
Depreciation - owned assets | 19,294 | 19,154 |
Profit on disposal of fixed assets | (40,636 | ) | (2,250 | ) |
Computer software amortisation | 45,398 | - |
Auditors' remuneration | 70,000 | 60,000 |
Foreign exchange differences | (81,993 | ) | 64,058 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Bank interest | 37,129 | 383 |
Bank loan interest | 51,715 | 22,180 |
88,844 | 22,563 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 239,386 | 510,991 |
Corporation tax underprovided in prior year | 49,451 | - |
Total current tax | 288,837 | 510,991 |
Deferred tax | 233,777 | 48,091 |
Tax on profit | 522,614 | 559,082 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Profit before tax | 1,822,386 | 2,748,093 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) | 346,253 | 522,138 |
Effects of: |
Expenses not deductible for tax purposes | 6,171 | 3,267 |
Income not taxable for tax purposes | (83,721 | ) | (47,500 | ) |
Capital allowances in excess of depreciation | (1,296 | ) | (1,530 | ) |
Adjustments to tax charge in respect of previous periods | 49,451 | 554 |
Deferred tax movement | 233,777 | 48,091 |
Capital gains tax | 5,321 | - |
Losses carried forward | 720 | - |
Taxation on prior year adjustment | (34,062 | ) | 34,062 |
Total tax charge | 522,614 | 559,082 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Ordinary shares of £0.001 each |
Interim | 86,000 | 110,000 |
11. | PRIOR YEAR ADJUSTMENT |
A prior period adjustment has been made to both Purchases and Accrued expenses, increasing each to the amount of £179,275 in 2021. The adjustment has been made to correct the recognition of these Purchases in the appropriate accounting period. |
The comparative figures have been restated to include these relevant expenses and the associated effect on equity. |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 181,592 |
AMORTISATION |
Amortisation for year | 45,398 |
At 31 December 2022 | 45,398 |
NET BOOK VALUE |
At 31 December 2022 | 136,194 |
At 31 December 2021 | 181,592 |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 1,187,616 | 195,168 | 1,382,784 |
Additions | - | 19,309 | 19,309 |
At 31 December 2022 | 1,187,616 | 214,477 | 1,402,093 |
DEPRECIATION |
At 1 January 2022 | - | 144,842 | 144,842 |
Charge for year | - | 19,294 | 19,294 |
At 31 December 2022 | - | 164,136 | 164,136 |
NET BOOK VALUE |
At 31 December 2022 | 1,187,616 | 50,341 | 1,237,957 |
At 31 December 2021 | 1,187,616 | 50,326 | 1,237,942 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Jain Group Holdings Ltd |
Registered office: Herschel House, 58 Herschel Street, Slough, Berks. SL1 1PG |
Nature of business: Holding company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Jain Estates Limited |
Registered office: Herschel House, 58 Herschel Street, Slough, Berks. SL1 1PG |
Nature of business: Property investment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Jainco (UK) Limited |
Registered office: Herschel House, 58 Herschel Street, Slough, Berks. SL1 1PG |
Nature of business: Wholesale of clothing and footwear |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Brands Edition Limited |
Registered office: Herschel House, 58 Herschel Street, Slough, Berks. SL1 1PG |
Nature of business: Clothing wholesaler |
% |
Class of shares: | holding |
Ordinary | 100.00 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2022 | 7,413,115 |
Additions | 752,371 |
Disposals | (674,364 | ) |
Revaluations | 400,000 |
At 31 December 2022 | 7,891,122 |
NET BOOK VALUE |
At 31 December 2022 | 7,891,122 |
At 31 December 2021 | 7,413,115 |
Fair value at 31 December 2022 is represented by: |
£ |
Valuation in 2017 | 35,914 |
Valuation in 2018 | 606,705 |
Valuation in 2019 | 161,670 |
Valuation in 2020 | 586,796 |
Valuation in 2021 | 250,000 |
Valuation in 2022 | 400,000 |
Cost | 5,850,037 |
7,891,122 |
Investment property was valued on an open market basis on 31 December 2022 by the directors of the company . |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
16. | STOCKS |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Stocks | 777,952 | 306,892 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 1,913,687 | 2,659,344 |
Amounts owed by group undertakings | 41,988 | - |
Other debtors | 1,990,929 | 1,340,128 |
Directors' loan accounts | - | 25,671 | - | - |
VAT | 35,294 | 68,567 |
Prepayments and accrued income | - | 100,000 |
3,981,898 | 4,193,710 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 302,978 | 704,737 |
Trade creditors | 21,623 | 52,525 |
Amounts owed to group undertakings | 41,988 | - |
Tax | 188,698 | 311,600 |
Social security and other taxes | 58,864 | 73,144 |
VAT | - | - | 56,000 | 36,000 |
Other creditors | 214,325 | 548,974 |
Directors' current accounts | 53,095 | 116,164 | - | - |
Directors' loan accounts | 1,663 | 834 | 1,663 | 1,663 |
Accruals and deferred income | 72,750 | 145,125 |
Accrued expenses | 801,203 | 1,324,221 |
1,757,187 | 3,277,324 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Bank loans (see note 20) | 1,671,703 | 2,003,191 |
Other loans (see note 20) | 510,000 | - |
2,181,703 | 2,003,191 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 10,237 | 451,011 |
Bank loans | 292,741 | 253,726 |
302,978 | 704,737 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 1,048,813 | 1,310,629 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 622,890 | 692,562 |
Amounts falling due in more than five years: |
Repayable by instalments |
Other loans - more than 5 years | 510,000 | - |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Within one year | 21,500 | 21,500 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Bank overdraft | 10,237 | 451,011 |
Bank loans | 1,964,444 | 2,256,917 |
Other loans | 510,000 | - |
2,484,681 | 2,707,928 |
Bank borrowings and Other loans are secured on investment properties and all other assets of the group. |
23. | PROVISIONS FOR LIABILITIES |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Deferred tax | 547,401 | 313,624 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 313,624 |
Charge to Income Statement during year | 233,777 |
Balance at 31 December 2022 | 547,401 |
Deferred tax provision on revaluation of investment properties amounts to £510,271 (2021 £311,602). The balance relates to accelerated capital allowances. |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | as restated |
£ | £ |
Ordinary | £0.00 | 1 | 5,328 | 5,328 |
JAIN GLOBAL HOLDINGS LIMITED (REGISTERED NUMBER: 13362716) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2022 |
25. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2022 | 8,461,006 | 1,328,407 | 9,789,413 |
Prior year adjustment | (179,275 | ) | (179,275 | ) |
8,281,731 | 9,610,138 |
Profit for the year | 1,299,772 | 1,299,772 |
Dividends | (86,000 | ) | (86,000 | ) |
Revaluation in year | (202,407 | ) | 202,407 | - |
At 31 December 2022 | 9,293,096 | 1,530,814 | 10,823,910 |
Company |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
Dividends | ( | ) |
At 31 December 2022 |
Other reserves relate to revaluations of investment properties and are not distributable. The revaluation in year is shown after deduction of deferred tax. |
26. | PENSION COMMITMENTS |
During the year, the group made pension contributions of £61,244 (2021: £56,944). As at the year end, there |
were unpaid pension contributions of £6,999 (2021: £8,992). |
27. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the beginning of the accounting period a director had an advance brought forward of £26,500. This balance was repaid during the year. |