Registered number:
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
COMPANY INFORMATION
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JAYAR COMPONENTS LIMITED
CONTENTS
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JAYAR COMPONENTS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
The Directors are pleased to present their strategic report for the year ending 31 January 2023.
Jayar Components Limited is a family run business that distributes automotive components to the independent aftermarket from its branches throughout the South East of England and property development via its subsidiary Granville Assoicates Limited.
The turnover and performance of Jayar Components Limited, for the year ended 31 January 2023, is again a record year. Sales have increased to £39.5 million, an 8.5% increase on the previous year. The Directors are pleased with these results, to keep increasing turnover and profits is commendable. The strategy of the Board remains unchanged and we continue to grow by opening new branches and improving existing branches. This year the country has felt the knock on effects of the war in Ukraine and the business has absorbed increased fuel and energy costs. The living wage increase has a large impact financially on the business, as it employs over 430 staff. The focus will be to continue to grow and maintain the solid base that Jayar Components was built on, to take the business forward. The performance of its subsidiary is as expected.
The risks and uncertainties of the pandemic period still continue to present challenges with stock levels, although container prices are now falling and with China reopening, we hope that stock supply will now become less unpredictable and more stable.
However, we now turn our attention to the cost-of-living crisis, high inflation and severe skilled staff shortages. The combined effects of the War in Ukraine, the tail end of the Covid-19 pandemic and the continued cost of Brexit along with high energy costs have produced the perfect storm of high inflation which has in turn created increased salary pressures including the National living wage which in April was an increase of 9.7% This has also created a shortage of high skilled staff in the workplace with unemployment being at near record low levels. The Government are now in consultation on whether a new car mot needs to be extended from 3 years to a potential 5 years, although the preference of the Government is to stay at 3 years, this could have a long-term detrimental effect on the automotive sector with over 2.6 million tests being carried out in 2021/22 and presents a principal risk to the business. New technologies and advancements are continuing to be made with how vehicles are powered. Alternatives to the current petrol and diesel, such as hybrids and fully electric cars are substantially increasing on our roads. There are however reported problems with the infrastructure to support these vehicles, increasing energy costs and the high purchase price but in time these will reduce and become more accessible. This will change the look of the industry in the future.
The Directors analyse the performance of the business using sales, gross profit, gross profit margin percentage and operating expenses.
Over the last 12 months in the year ending 31 January 2023 the company's sales figure increased by £3.1m, and gross profit increased by £2m. Operating expenses increased by 12.8%.The Company will continue to be resilient grow and remain dynamic in this ever changing market.
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JAYAR COMPONENTS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
In addition to the key financial analysis, stock holding, movement and purchasing analysis is key to monitoring the performance of the business. This has been a very important area for the business to focus on. Stresses on supply chains and changes in customer purchasing patterns has led to the business needing to adapt quickly to these factors. The good communication within the company and the trusted relations with our suppliers, allowed the Company to quickly adapt to the market and stresses of the pandemic and Brexit.
The Directors are aware of their duty under s.172 of the Companies Act 2006 to act in a way that, in good faith, would be most likely to promote the success of the Group for the benefit of its shareholders.
This report was approved by the board and signed on its behalf.
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JAYAR COMPONENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
The directors present their report and the financial statements for the year ended 31 January 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 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 for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £6,039,814 (2022 - £5,554,634).
Dividends totalling £4,000,000 were paid during the year ended 31 January 2023 (2022 - £4,000,000).
The directors who served during the year were:
The board continues to seek opportunities to consolidate its performance.
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JAYAR COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
The Directors’ aim to be a responsible employer making the health, welfare, pay and safety of all the staff a key consideration in the conduct of the business. Our staffs’ contribution is fundamental to the continued success of the business and therefore they are integral to it. The company engages with all employees from the commencement of employment. New employees receive induction training and will work in a small team to aid the communication of ideas amongst the individuals and the company. There is a company culture that encourages a working environment where employees can realise their potential. Throughout their employment, there are ongoing informal meetings and communications to promote the development of individuals and the business to both be successful.
Disabled employees The Company provides job opportunities to disabled and able bodied people on the merit of their aptitude for a job role. Should an existing employee become disabled, then every effort will be made to adapt the role, support and provide retraining, so as they may continue their employment with the Company.
We build long term solid relationships with our suppliers, to ensure the success of getting their product to market and meeting our customer’s needs. We are committed to high ethical standards and through mutual goals we strive to maintain this. The good communication with our suppliers ensures a respect for each other’s business and to being successful in meeting the demands of the market together.
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JAYAR COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
This is the second year that we have been required to report greenhouse gas emissions and our report covers the 12 month period 1st February 2022 to 31st January 2023.
Granville Associates Limited, a member of the group, does not use any energy. It is therefore a zero-carbon business and as an entity falls below the reporting threshold of 40,000kWh.
The consumption figures have been obtained from Green Energy PLC, who supply all electricity and gas to all our branches. Therefore, it follows that our calculations are based on what we have directly used and paid for. The following table gives our gross emissions and intensity ratios: Methodology and reporting Scope 1 is the fuel consumption figures used to power our vehicles. The figures for fuel consumption have been calculated from our supplier invoices and reports. Gallons of fuel were converted into KWH and using the EPA Green House Gas Equivalent Calculator Web Site then converted to tons of Co2. In respect of scope 2, the emissions from our use of electricity and gas at our branches and head office are directly influenced and controlled by the Group. Figures provided in MWH have been converted to KWH using the EPA Green House Gas Equivalent Calculator Web Site. The total energy consumption in KWH figure, includes electricity and gas. The CO2 emissions given relates to the use of green gas only. Our electricity is 100% renewable and zero emissions rated. Energy efficiency action All our energy usage to reduce our energy consumption, led us to change our supplier for gas, so all our gas used is certified as 100% green backed by RGGO’S (Renewable Gas Guarantee of Origin), and so too is our electricity backed by REGO’s (Renewable Electricity Guarantee of Origin). Making us as energy efficient as we could be. No measures of the change were taken at the time. For the reporting period we took 48 older vehicles out of service and these were replaced by new more efficient vehicles. We are regularly reviewing the use of electric vehicles for their range and charging times to evaluate whether they can replace our existing fleet, whilst meeting business needs to deliver parts to our customers. All our vehicles are tracked and we are therefore able to monitor use and encourage better driving techniques and improved fuel efficiency. As part of our building maintenance, we are replacing older florescent fittings with the more efficient LED units. We are committed to improve our energy efficiency. As this is our second year of reporting on energy consumption, our immediate aim is for the Co2 emissions to be reduced. A key area for change is the powering of our vans. By the end of 2030 our goal is to have a 75% renewable fleet and for our energy consumption to fall by 75%.
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JAYAR COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
Certain items required under Schedule 7 to be disclosed in the Directors Report are set out in the Strategic Report in accordance with S.414C(II) of the Companies Act 2006; these being the Groups principle risks and uncertainties and key performance indicators.
There have been no significant events affecting the Group since the year end.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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JAYAR COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAYAR COMPONENTS LIMITED
We have audited the financial statements of Jayar Components Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2023, which comprise the Group Statement of income and retained earnings, the Group and Company Balance sheets, the Group Statement of cash flows and the related notes, 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).
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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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JAYAR COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAYAR COMPONENTS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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JAYAR COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAYAR COMPONENTS LIMITED (CONTINUED)
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 Auditor's report 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 Group financial statements.
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:
∙Enquiry of management around actual and potential litigation and claims;
∙Enquiry of management to identify any instances of non-compliance with laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
∙Reviewing minutes of meetings of those charged with governance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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JAYAR COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAYAR COMPONENTS 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 Auditor's report 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 Auditor
United Kingdom
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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JAYAR COMPONENTS LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
REGISTERED NUMBER: 01289333
CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
REGISTERED NUMBER: 01289333
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 35 form part of these financial statements.
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JAYAR COMPONENTS LIMITED
REGISTERED NUMBER: 01289333
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
REGISTERED NUMBER: 01289333
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 35 form part of these financial statements.
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JAYAR COMPONENTS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
Jayar Components Limited is a private Company limited by shares incorporated in England and Wales, United Kingdom. The address of the registered office is Jayar House, Forstal Road, Aylesford, Maidstone, Kent ME20 7AF.
The nature of the groups operations and principal activities is the sale of motor component factors. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.
2.Accounting policies
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.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
The subsidiary undertaking Granville Associates Ltd has claimed the exemption from audit under section 479A of the Companies Act 2006.
The directors have assessed that there are no significant doubts in the company's ability to continue as a going concern. As a result, the financial statements have been prepared on a going concern basis.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated statement of income and retained earnings in the same period as the related expenditure.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods as per the table below.
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.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
2.Accounting policies (continued)
It has been judged that the split between land and buildings in the accounts is 2/3rds buildings and 1/3rd land as there is no actual reliable split provided in the valuation. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: The adjustment made for stock write-down and provision for obsolete stock is subject to some degree of uncertainty but is not thought to pose a significant risk of causing a material adjustment. The adjustment is calculated at 10% of stock carrying value after being adjusted for consignment stock and rebates.
The whole of the turnover is attributable to the sale of motor components.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
12.Taxation (continued)
In the Spring Budget 2021, the Government announced that the corporation tax rate would remain at 19%
until 2023. Following which, the rate of corporation tax will increase to 25% for profits over £250,000. This new law was substantively enacted in May 2021.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
The 2023 valuations were made by the directors, who have concluded that the market value at the year end is not materially different to the cost of the investment property.
The 2023 valuations were made by the directors, on an open market value for existing use basis.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £169,881 (2022 - £145,809). Contributions totalling £40,754 (2022 - £35,787) were payable to the fund at the balance sheet date and are included in creditors.
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
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JAYAR COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
The ultimate controlling parties are deemed to be Mr & Mrs J Ratcliffe owing to their majority shareholding.
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