Company registration number 04820501 (England and Wales)
NEW WAY INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
NEW WAY INTERNATIONAL LIMITED
COMPANY INFORMATION
Director
N Prince
Company number
04820501
Registered office
Britannia House
Pier Road
Feltham
London
TW14 0TW
Auditor
Alliotts LLP
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DL
NEW WAY INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
NEW WAY INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the year to 31 March 2023.

Section 172 (1) statement

This statement contains an overview of how the directors have performed their duty to promote the success of the Company as set out in section 172(1) of the UK's Companies Act 2006. The directors have acted in a way that they consider to be most likely to promote the success of the Company, and in doing so had regard to:

 

Under Section 172 (1) of the Companies Act 2006 we have produced the report below which contains an overview of how the Directors have performed their duty to promote the success of the Company:

We have taken into account the need to continue to grow our business relationships with suppliers and customers to ensure the continuity of the business going forward. The key areas are detailed below:

 

1) Continue the management certification of ISO 9001 & 14001 and audit our policies and procedures using a third-party regulator,

 

2) Carried out detailed planning & forecasts within the business to ensure the ongoing financial safety of the business.

 

3) Monitor the business plan to control deviation and achieve annual sales targets & profits in line with the shareholder expectations.

 

4) Seek opportunities to grow the business profitably and sustainably for the benefit of all employees, suppliers and customers.

 

5) Supervising the overall strategy of the Company and maintaining them to the highest possible standards of integrity and honesty when dealing with employees, suppliers and customers. This would include local and national government bodies.

Fair review of the business

The results for the year and the financial position of the company are shown in the annexed financial statements.

 

The Director considers the key performance indicators to be turnover and the gross profit percentage.

 

Turnover fell by £52 million in the year, however the director was pleased to see an impressive increase in the gross profit margin from 3.08% to 7.10%. Overall, the director was satisfied with the overall group profit after tax of £2,997,265.

Financial risk management objectives and policies

The company continues to deal in high value consumer products in a fast changing market with continuous technical development. The company is working to reduce the level of stocks and to turn stocks into sales more quickly which in turn will reduce exposure to falling prices in certain areas.

 

Serial numbers of all phones are recorded to provide a full audit trail of all stock purchased. Additional information is provided to HMRC as requested. Stringent controls are made on both payments of funds by electronic transfer and collection of debtor monies.

 

The key objective with all trading transactions is to provide customers with a first class service whilst balancing this against profitability. Pricing policies are determined by market forces and reference to specialist internet subscription websites. The company’s sales team is in constant touch with other traders throughout the world and therefore have unit prices at their fingertips. The company continues to build and enhance its relationships and during the period established some promising new relationships.

NEW WAY INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

Principal risks and uncertainties for the business relate to movements in foreign exchange rates and availability of stock.

Key performance indicators

As referred to above, the director believes the key performance indicators to be turnover and the gross profit percentage.

 

In a Fast Moving Consumer Goods market, although the gross margin increased during the year, this remains under pressure but the director continues to take steps to improve margins, working carefully with the team.

 

The workforce continues to be highly motivated with a focus on meeting customer expectations.

Other information and explanations

Business Environment

The industry remains highly competitive with the principal bar to entry being a high capital requirement coupled with regulatory control imposed by HMRC. New Way International Ltd however continues to seek new opportunities, at the same time doing all possible to test the veracity of new clients and, where possible, to insist on advance payments for transactions.

 

New Way BV are an active subsidiary company based in the Netherlands who are used to facilitate sales within Europe.

On behalf of the board

N Prince
Director
NEW WAY INTERNATIONAL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company and group in the year under review is that of the wholesaling and internet distribution of mobile phones and accessories. The company continues to be a leading wholesaler of mobile phones and accessories selling both domestically and internationally.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £50,000. The director does not recommend payment of a further dividend.

Director

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

N Prince
Auditor

The auditor, Alliotts LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

In line with the Energy & Carbon reporting legislation, the company is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 & 2 sources of energy & emissions have been disclosed as well as mandatory scope 3 sources of energy & emissions. This is our first financial period (1st April 2022 to 31st March 2023) completed on energy consumption.

Energy Source    Consumption    Scope    Emissions calculation

Scope 1 – Gas & other fuels. – total 109839 kWh (kilowatt-hours) used for the year taken from gas bills used at Britannia House building in Feltham.

GHG emissions (Tco2E) = 109839 x 0.18315 (fuels/natural gas conversion factor gross CV to kg CO2e) = 20,117 kgCO2e = 20.11 tCO2e

Scope 2 - Electricity – total 10949 kWh used for the year, taken from the electricity bills used at Britannia House building in Feltham.

GHG emissions (Tco2E) = 10949 x 0.21233 (fuels/natural gas conversion factor gross CV to kg CO2e) = 2,324 kgCO2e = 2.32 tCO2e

 

Transport

Mercedes Vito Van (AY18 RZX) – 13,858 Diesel miles per year.

13,858m = 22,302km x 0.18315 = 4,084 kgCO2e = 4.08 tCO2e

Mercedes 319 Sprinter Van (WP66 ZVF) – 32,858 Diesel miles per year.

32,858m = 52,879km x 0.18315 = 9,684 kgCO2e = 9.68 tCO2e

Iveco Daily 35C2 Van (RO71 KVG) – 44,132 Diesel miles per year

44,132m = 71,023km x 0.18315 = 13,007 kgCO2e = 13.00 tCO2e

 

Total

Consumption = 109,839 + 10,949 + 26,775 = 147,563 kWh x 0.18315

Emissions = 49,216 kgCO2e 49.21 tCO2e

NEW WAY INTERNATIONAL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

Utilities

All the energy consumption has been generated from our annual suppliers information related to the building Britannia House, Pier Road, Feltham, Middlesex, TW14 0TW. The conversion rates are based on the UK governments annual publication as retracted from the GOV.UK website. Our energy is reviewed annually with some external partners to gauge the best rates in the market.

Transport

We currently run three vehicles as expressed in the above report all diesel related engines and the drivers pay using company bank credit cards and the receipts and payments checked on a monthly basis from the bank statements. The calculations are based on the UK governments annual publication as retracted from the GOV.UK website.

Other Fuels & Emissions

None to report.    

Measures to increase energy efficiency

We are periodically reviewing the positions taken in relation to transport and utilities to ensure the minimum energy consumption is used, this includes reviewing transport options when new vehicles are acquired and looking at policies to ensure minimum wastage of energy in the supply chain and building.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

NEW WAY INTERNATIONAL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
On behalf of the board
N Prince
Director
2 November 2023
NEW WAY INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW WAY INTERNATIONAL LIMITED
- 6 -
Opinion

We have audited the financial statements of New Way International Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

NEW WAY INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW WAY INTERNATIONAL LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

NEW WAY INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW WAY INTERNATIONAL LIMITED
- 8 -

Audit response to risks identified

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Christopher Cairns FCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP
2 November 2023
Chartered Accountants
Statutory Auditor
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DL
NEW WAY INTERNATIONAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
87,366,848
139,068,103
Cost of sales
(81,167,741)
(134,779,583)
Gross profit
6,199,107
4,288,520
Distribution costs
(601,168)
(547,188)
Administrative expenses
(2,518,206)
(2,859,374)
Other operating (expenses)/income
(3,251)
72,147
Operating profit
4
3,076,482
954,105
Interest receivable and similar income
8
(2,924)
(1,002)
Interest payable and similar expenses
9
(75)
(273)
Amounts written off investments
10
-
(2)
Profit before taxation
3,073,483
952,828
Tax on profit
11
(577,287)
(210,180)
Profit for the financial year
23
2,496,196
742,648
Other comprehensive income
Currency translation loss taken to retained earnings
(48,994)
(1,089)
Total comprehensive income for the year
2,447,202
741,559
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

NEW WAY INTERNATIONAL LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
70,103
91,753
Current assets
Stocks
17
9,193,232
4,408,239
Debtors
18
6,191,869
13,519,297
Cash at bank and in hand
2,735,770
1,100,231
18,120,871
19,027,767
Creditors: amounts falling due within one year
19
(9,966,405)
(13,288,297)
Net current assets
8,154,466
5,739,470
Total assets less current liabilities
8,224,569
5,831,223
Provisions for liabilities
Deferred tax liability
20
13,537
17,393
(13,537)
(17,393)
Net assets
8,211,032
5,813,830
Capital and reserves
Called up share capital
22
102
102
Profit and loss reserves
23
8,210,930
5,813,728
Total equity
8,211,032
5,813,830
The financial statements were approved and signed by the director and authorised for issue on 2 November 2023
02 November 2023
N Prince
Director
Company registration number 04820501 (England and Wales)
NEW WAY INTERNATIONAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
70,103
91,753
Investments
15
15,388
15,388
85,491
107,141
Current assets
Stocks
17
8,972,424
3,611,450
Debtors
18
7,272,380
14,311,867
Cash at bank and in hand
1,271,527
178,283
17,516,331
18,101,600
Creditors: amounts falling due within one year
19
(9,700,771)
(12,639,894)
Net current assets
7,815,560
5,461,706
Total assets less current liabilities
7,901,051
5,568,847
Provisions for liabilities
Deferred tax liability
20
13,537
17,393
(13,537)
(17,393)
Net assets
7,887,514
5,551,454
Capital and reserves
Called up share capital
22
102
102
Profit and loss reserves
23
7,887,412
5,551,352
Total equity
7,887,514
5,551,454

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £2,386,060 (2022 - £487,838 profit).

The financial statements were approved and signed by the director and authorised for issue on 2 November 2023
02 November 2023
N Prince
Director
Company registration number 04820501 (England and Wales)
NEW WAY INTERNATIONAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
102
5,272,169
5,272,271
Year ended 31 March 2022:
Profit for the year
-
742,648
742,648
Other comprehensive income:
Currency translation differences
-
(1,089)
(1,089)
Total comprehensive income
-
741,559
741,559
Dividends
12
-
(200,000)
(200,000)
Balance at 31 March 2022
102
5,813,728
5,813,830
Year ended 31 March 2023:
Profit for the year
-
2,496,196
2,496,196
Other comprehensive income:
Currency translation differences
-
(48,994)
(48,994)
Total comprehensive income
-
2,447,202
2,447,202
Dividends
12
-
(50,000)
(50,000)
Balance at 31 March 2023
102
8,210,930
8,211,032
NEW WAY INTERNATIONAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
102
5,263,514
5,263,616
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
487,838
487,838
Dividends
12
-
(200,000)
(200,000)
Balance at 31 March 2022
102
5,551,352
5,551,454
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,386,060
2,386,060
Dividends
12
-
(50,000)
(50,000)
Balance at 31 March 2023
102
7,887,412
7,887,514
NEW WAY INTERNATIONAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,746,954
807,099
Interest paid
(75)
(273)
Income taxes paid
(9,425)
-
0
Net cash inflow from operating activities
1,737,454
806,826
Investing activities
Purchase of tangible fixed assets
(1,750)
(56,314)
Proceeds from disposal of investments
-
(2)
Interest received
(2,924)
(1,002)
Net cash used in investing activities
(4,674)
(57,318)
Financing activities
Dividends paid to equity shareholders
(50,000)
(200,000)
Net cash used in financing activities
(50,000)
(200,000)
Net increase in cash and cash equivalents
1,682,780
549,508
Cash and cash equivalents at beginning of year
1,099,927
551,509
Effect of foreign exchange rates
(48,994)
(1,090)
Cash and cash equivalents at end of year
2,733,713
1,099,927
Relating to:
Cash at bank and in hand
2,735,770
1,100,231
Bank overdrafts included in creditors payable within one year
(2,057)
(304)
NEW WAY INTERNATIONAL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,089,766
2,392
Interest paid
(75)
(273)
Income taxes refunded
2,017
-
0
Net cash inflow from operating activities
1,091,708
2,119
Investing activities
Purchase of tangible fixed assets
(1,750)
(56,314)
Proceeds from disposal of subsidiaries
-
0
2
Proceeds from disposal of investments
-
0
(2)
Interest received
53,590
-
0
Net cash generated from/(used in) investing activities
51,840
(56,314)
Financing activities
Dividends paid to equity shareholders
(50,000)
(200,000)
Net cash used in financing activities
(50,000)
(200,000)
Net increase/(decrease) in cash and cash equivalents
1,093,548
(254,195)
Cash and cash equivalents at beginning of year
177,979
432,174
Cash and cash equivalents at end of year
1,271,527
177,979
Relating to:
Cash at bank and in hand
1,271,527
178,283
Bank overdrafts included in creditors payable within one year
-
(304)
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

New Way International Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Britannia House, Pier Road, Feltham, London, TW14 0TW. The company registration number is: 04820501.

 

The group consists of New Way International Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company New Way International Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

New Way Middle East FZE, a company under common share ownership, has indicated that it is willing to support the Company, by not seeking repayment of amounts owed, until the financial position improves. On this basis, the director considers that the going concern basis of accounting remains appropriate.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Creditors

Creditors are receivable once an invoice has been raised and the goods have been dispatched. Management use the goods delivered records to ascertain this.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Foreign currency

Where transactions occur in foreign currency they are translated into sterling at agreed monthly rates. Where balances at the year end are in foreign currencies they have been translated at the rate prevailing at the year end.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
87,366,848
139,068,103
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
70,521,658
110,190,817
European Union
7,541,953
23,116,902
Middle and Far East
7,678,164
1,900,834
United States of America
1,625,073
3,859,550
87,366,848
139,068,103
2023
2022
£
£
Other revenue
Interest income
(2,924)
(1,002)
Grants received
(3,251)
72,147
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(47,083)
(31,172)
Government grants
3,251
(72,147)
Depreciation of owned tangible fixed assets
23,400
29,258
Stocks impairment losses recognised or reversed
-
0
699,392
Operating lease charges
260,129
147,917
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
29,500
28,000
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Distribution
18
18
18
18
Sales and admin
37
38
36
37
Total
55
56
54
55

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,554,672
1,570,333
1,523,294
1,534,858
Social security costs
172,746
140,876
167,004
133,876
Pension costs
29,149
29,265
29,149
29,265
1,756,567
1,740,474
1,719,447
1,697,999
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
74,712
70,464
Company pension contributions to defined contribution schemes
1,321
1,321
76,033
71,785
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
(907)
(1,002)
Other interest income
(2,017)
-
Total income
(2,924)
(1,002)
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
(907)
(1,002)
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
75
273
10
Amounts written off investments
2023
2022
£
£
Gain/(loss) on disposal of investments held at fair value
-
(2)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
590,693
192,787
Adjustments in respect of prior periods
(9,550)
-
0
Total current tax
581,143
192,787
Deferred tax
Origination and reversal of timing differences
(3,856)
17,393
Total tax charge
577,287
210,180

The actual charge for the year can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,073,483
952,828
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
583,962
181,037
Tax effect of expenses that are not deductible in determining taxable profit
5,929
2,480
Tax effect of utilisation of tax losses not previously recognised
-
0
(2,893)
Effect of change in corporation tax rate
(3,164)
(2,044)
Permanent capital allowances in excess of depreciation
(131)
(3,210)
Effect of overseas tax rates
(9,309)
23,165
Deferred tax adjustments in respect of prior years
-
0
11,645
Taxation charge
577,287
210,180
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
50,000
200,000
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
17
-
699,392
Recognised in:
Cost of sales
-
699,392
14
Tangible fixed assets
Group
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
315,868
28,552
72,231
416,651
Additions
-
0
1,750
-
0
1,750
At 31 March 2023
315,868
30,302
72,231
418,401
Depreciation and impairment
At 1 April 2022
280,095
7,173
37,630
324,898
Depreciation charged in the year
9,029
5,964
8,407
23,400
At 31 March 2023
289,124
13,137
46,037
348,298
Carrying amount
At 31 March 2023
26,744
17,165
26,194
70,103
At 31 March 2022
35,773
21,379
34,601
91,753
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
315,868
28,552
72,231
416,651
Additions
-
0
1,750
-
0
1,750
At 31 March 2023
315,868
30,302
72,231
418,401
Depreciation and impairment
At 1 April 2022
280,095
7,173
37,630
324,898
Depreciation charged in the year
9,029
5,964
8,407
23,400
At 31 March 2023
289,124
13,137
46,037
348,298
Carrying amount
At 31 March 2023
26,744
17,165
26,194
70,103
At 31 March 2022
35,773
21,379
34,601
91,753
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
15,388
15,388
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
15,388
Carrying amount
At 31 March 2023
15,388
At 31 March 2022
15,388
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
New Way B.V.
Rotterdam Airportplein 22, 3045 AP in Rotterdam
Ordinary
100.00
New Way Associates Limited
Britannia House, Pier Road, Feltham, Middlesex,
TW14 0TW
Ordinary
100.00
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
9,193,232
4,408,239
8,972,424
3,611,450
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,157,983
12,688,995
6,106,742
12,654,758
Amounts owed by group undertakings
-
-
1,131,591
1,622,516
Other debtors
(763)
(10,719)
(967)
(10,896)
Prepayments and accrued income
34,649
841,021
35,014
45,489
6,191,869
13,519,297
7,272,380
14,311,867
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
2,057
304
-
0
304
Trade creditors
8,725,477
12,425,831
8,655,846
11,898,573
Corporation tax payable
764,505
192,787
676,951
106,942
Other taxation and social security
223,478
297,223
223,478
297,223
Other creditors
220,506
245,263
119,496
215,122
Accruals and deferred income
30,382
126,889
25,000
121,730
9,966,405
13,288,297
9,700,771
12,639,894
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
13,537
17,393
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
13,537
17,393
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
17,393
17,393
Credit to profit or loss
(3,856)
(3,856)
Liability at 31 March 2023
13,537
13,537

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,149
29,265

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
102
102
102
102
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
5,813,728
5,272,169
5,551,352
5,263,514
Profit for the year
2,496,196
742,648
2,386,060
487,838
Dividends
(50,000)
(200,000)
(50,000)
(200,000)
Currency translation differences
(48,994)
(1,089)
-
0
-
0
At the end of the year
8,210,930
5,813,728
7,887,412
5,551,352
24
Financial commitments, guarantees and contingent liabilities

There is a Composite Company Unlimited Multilateral Guarantee given by New Way International Limited, New Way Associates Limited, New Way Accessories Limited, Chitter Chatter Limited and Superexcel Investments Limited, and an agreement over specific credit balances to cover any indebtedness to the bank. At the balance sheet date the bank was owed £906,756 (2022 - £1,020,599) by Superexcel Investments Limited and £50,000 (2022 - £Nil) by Chitter Chatter Limited. These agreements also secure against forward exchange contracts of up to $1,200,000 and foreign currency options up to $10,000,000.

 

Ultimate Phoneshop Ltd., a subsidiary, was dissolved on 11 May 2021

25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
140,146
188,490
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
4,641,632
8,789,027
14,814,489
51,587,404
Company
Other related parties
6,774,122
11,994,091
19,661,862
55,224,193
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Related party transactions
(Continued)
- 30 -
Rent charge
2023
2022
£
£
Group
Other related parties
258,035
143,214
Company
Other related parties
258,035
143,214

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
7,477,293
11,214,786
Company
Other related parties
7,477,293
11,425,229

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
2022
2022
Balance
Balance
Provision
Net
£
£
£
£
Group
Other related parties
391,184
2,013,374
733,033
1,280,341
Company
Entities over which the company has control, joint control or significant influence
1,131,591
1,842,228
-
1,842,228
Other related parties
391,184
2,013,374
-
2,013,374
26
Controlling party

The ultimate controlling party is shareholder Mr M Singh.

 

NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,496,196
742,649
Adjustments for:
Taxation charged
577,287
210,180
Finance costs
75
273
Investment income
2,924
1,002
Depreciation and impairment of tangible fixed assets
23,400
29,258
Other gains and losses
-
2
Movements in working capital:
(Increase)/decrease in stocks
(4,784,993)
9,705,025
Decrease/(increase) in debtors
7,327,428
(2,400,735)
Decrease in creditors
(3,895,363)
(7,480,555)
Cash generated from operations
1,746,954
807,099
28
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,386,060
487,838
Adjustments for:
Taxation charged
564,136
124,335
Finance costs
75
273
Investment income
(53,590)
-
0
Depreciation and impairment of tangible fixed assets
23,400
29,258
Other gains and losses
-
2
Movements in working capital:
(Increase)/decrease in stocks
(5,360,974)
9,477,546
Decrease/(increase) in debtors
7,039,487
(2,417,914)
Decrease in creditors
(3,508,828)
(7,698,946)
Cash generated from operations
1,089,766
2,392
29
Analysis of changes in net funds - group
1 April 2022
Cash flows
Exchange rate movements
31 March 2023
£
£
£
£
Cash at bank and in hand
1,100,231
1,684,533
(48,994)
2,735,770
Bank overdrafts
(304)
(1,753)
-
(2,057)
1,099,927
1,682,780
(48,994)
2,733,713
NEW WAY INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
30
Analysis of changes in net funds - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
178,283
1,093,244
1,271,527
Bank overdrafts
(304)
304
-
0
177,979
1,093,548
1,271,527
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