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REGISTERED NUMBER: 02802325 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

MIRZA (UK) LIMITED

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


MIRZA (UK) LIMITED

COMPANY INFORMATION
For The Year Ended 31 March 2023







DIRECTORS: Mr A Habib
Mr T Mirza
Mr P J Mugglestone





SECRETARY: Mr A Habib





REGISTERED OFFICE: Mirza House
Sherbourne Drive Tilbrook
Milton Keynes
Buckinghamshire
MK7 8HY





REGISTERED NUMBER: 02802325 (England and Wales)





AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

STRATEGIC REPORT
For The Year Ended 31 March 2023


The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
The principal activity of the business is that of importer and wholesaler of footwear.

As there has been reconfiguration of sourcing option preferred by customers, revenue for the year under review decreased to £8,873,857 from £15,634,710 in 2022 and gross profit decreased by £313,914 from £3,521,868 in 2022. Cash balances decreased accordingly from £4,786,793 to £958,025 in 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
Management continually monitor the risks facing the Company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.

The principal risks and uncertainties facing the Company are as follows:

Liquidity risk
The company has arranged its borrowings over a period of time so as to ensure that it has sufficient liquid resources to meet the operating needs of the business.

Credit risk
Receivable balances are continually monitored and appropriate action is taken to recover them.

FINANCIAL KEY PERFORMANCE INDICATORS
The directors monitor the progress of the Company by reference to the following KPIs. During the year, the Company has maintained performance under these KPIs through the management strategies in place.

Gross profit margin: 36.2% (2022: 22.5%)
Operating profit margin : 4.27% (2022: 6.35%)
Stock turnover days: 222 (2022: 51)
Trade debtor days: 36 (2022: 25)
Trade creditor days: 157 (2022: 183)

CUSTOMER SATISFACTION
The Company has primarily retained its existing customers during the year. Based on the individual customer-based dedicated management system, the Company has received positive feedback from existing customers for the business services provided to them during the year.

STAFF RETENTION
Staff are generally well-motivated and feel valued being part of a growing company. Staff levels have not changed significantly in period.

ON BEHALF OF THE BOARD:





Mr A Habib - Director


12 May 2023

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

REPORT OF THE DIRECTORS
For The Year Ended 31 March 2023


The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of shoe importers and wholesalers.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2023.

FUTURE DEVELOPMENTS
Retail trade remained precarious in FY 2022/23. Against the backdrop of significant volatility in the macroeconomic environment, it is difficult to predict customer demand pattern in the upcoming financial year. However, with greater operational efficiency and with adaptation of a new commercial model, we are taking step towards a more sustainable future.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr A Habib
Mr T Mirza
Mr P J Mugglestone

Other changes in directors holding office are as follows:

Mr R A Mirza - resigned 29 June 2022

FINANCIAL INSTRUMENTS
The company utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

REPORT OF THE DIRECTORS
For The Year Ended 31 March 2023


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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A Habib - Director


12 May 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MIRZA (UK) LIMITED


Opinion
We have audited the financial statements of Mirza (Uk) Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2023 and of its 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 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 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 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 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 materially inconsistent with the financial statements or our knowledge obtained in 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 the audit:
- the information given in the 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 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
MIRZA (UK) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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 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 company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MIRZA (UK) LIMITED


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.




Emma Jones FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

15 May 2023

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

STATEMENT OF COMPREHENSIVE
INCOME
For The Year Ended 31 March 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 8,873,857 15,634,710

Cost of sales 5,665,903 12,112,842
GROSS PROFIT 3,207,954 3,521,868

Distribution costs 1,473,913 1,511,199
Administrative expenses 1,355,135 1,052,109
2,829,048 2,563,308
378,906 958,560

Other operating income - 34,611
OPERATING PROFIT 5 378,906 993,171

Impairment of investment 6 - 118,540
378,906 874,631

Interest receivable and similar income 26,025 -
404,931 874,631
Gain/loss on revaluation of investment
property

200,000

(200,000

)
604,931 674,631

Interest payable and similar expenses 7 74,961 51,228
PROFIT BEFORE TAXATION 529,970 623,403

Tax on profit 8 115,968 198,191
PROFIT FOR THE FINANCIAL YEAR 414,002 425,212

OTHER COMPREHENSIVE INCOME
- 1,465,148
Income tax relating to other
comprehensive income

-

(254,167

)
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

-

1,210,981
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

414,002

1,636,193

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

BALANCE SHEET
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 5,999,342 5,968,885
Investments 10 508,118 508,118
Investment property 11 1,500,000 1,300,000
8,007,460 7,777,003

CURRENT ASSETS
Stocks 12 3,455,173 1,701,553
Debtors 13 1,982,144 2,929,778
Cash in hand 958,025 4,786,793
6,395,342 9,418,124
CREDITORS
Amounts falling due within one year 14 4,033,399 7,143,756
NET CURRENT ASSETS 2,361,943 2,274,368
TOTAL ASSETS LESS CURRENT LIABILITIES 10,369,403 10,051,371

CREDITORS
Amounts falling due after more than
one year

15

(1,470,463

)

(1,614,027

)

PROVISIONS FOR LIABILITIES 19 (501,881 ) (454,287 )
NET ASSETS 8,397,059 7,983,057

CAPITAL AND RESERVES
Called up share capital 20 110,000 110,000
Revaluation reserve 3,382,001 3,382,001
Capital redemption reserve 90,000 90,000
Retained earnings 4,815,058 4,401,056
SHAREHOLDERS' FUNDS 8,397,059 7,983,057

The financial statements were approved by the Board of Directors and authorised for issue on 12 May 2023 and were signed on its behalf by:





Mr A Habib - Director


MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 March 2023

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   

Balance at 1 April 2021 110,000 3,975,844 2,171,020 90,000 6,346,864

Changes in equity
Total comprehensive income - 425,212 1,210,981 - 1,636,193
Balance at 31 March 2022 110,000 4,401,056 3,382,001 90,000 7,983,057

Changes in equity
Total comprehensive income - 414,002 - - 414,002
Balance at 31 March 2023 110,000 4,815,058 3,382,001 90,000 8,397,059

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

CASH FLOW STATEMENT
For The Year Ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (7,280,198 ) 4,780,596
Interest paid (74,961 ) (51,228 )
Tax paid (188,967 ) (51,396 )
Net cash from operating activities (7,544,126 ) 4,677,972

Cash flows from investing activities
Purchase of tangible fixed assets (55,999 ) (6,246 )
Sale of tangible fixed assets - 49,700
Interest received 26,025 -
Net cash from investing activities (29,974 ) 43,454

Cash flows from financing activities
Loan repayments in year (143,564 ) (2,171,494 )
Amounts loaned to related parties - (400,000 )
Amounts loaned from related parties 3,888,896 388,074
Net cash from financing activities 3,745,332 (2,183,420 )

(Decrease)/increase in cash and cash equivalents (3,828,768 ) 2,538,006
Cash and cash equivalents at beginning
of year

2

4,786,793

2,248,787

Cash and cash equivalents at end of
year

2

958,025

4,786,793

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE CASH FLOW STATEMENT
For The Year Ended 31 March 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 529,970 623,403
Depreciation charges 25,541 59,327
Profit on disposal of fixed assets - (9,486 )
(Gain)/loss on revaluation of fixed assets (200,000 ) 200,000
Impairment of investments - 118,540
Finance costs 74,961 51,228
Finance income (26,025 ) -
404,447 1,043,012
(Increase)/decrease in stocks (1,753,620 ) 556,718
(Increase)/decrease in trade and other debtors (539 ) 60,530
(Decrease)/increase in trade and other creditors (5,930,486 ) 3,120,336
Cash generated from operations (7,280,198 ) 4,780,596

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 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 958,025 4,786,793
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 4,786,793 2,256,996
Bank overdrafts - (8,209 )
4,786,793 2,248,787


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 4,786,793 (3,828,768 ) 958,025
4,786,793 (3,828,768 ) 958,025
Debt
Debts falling due within 1 year (218,525 ) - (218,525 )
Debts falling due after 1 year (1,614,027 ) 143,564 (1,470,463 )
(1,832,552 ) 143,564 (1,688,988 )
Total 2,954,241 (3,685,204 ) (730,963 )

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2023


1. STATUTORY INFORMATION

Mirza (Uk) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

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.

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount 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.

Stock provisioning
The company is a shoe wholesaler, and it subject to changing customer demands and economic change. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. Management consider the nature and condition of stock, as well as apply assumptions around expected future demand for the stock, when calculating the level stock provisioning.

Property valuations
The Company determines whether a property qualifies as an investment property, and has developed criteria in making that judgement. Investment property is a property held to earn rentals or for capital appreciation or both. Therefore, the Company considers whether a property generates cash flows largely independently of the other assets held by the Company.

The fair values of freehold and investment properties are determined by using valuation techniques. The Company uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Where appropriate, professional valuations or similar valuation techniques are also used to determine the fair values of the properties.

In the absence of current prices in an active market for similar properties, the Company considers information from a variety of sources, including:
- current prices in an active market for properties of a different nature, condition or location, adjusted to reflect those differences;
- recent prices of similar properties on less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices; and
- discounted cash flow projections based on reliable estimates of future cash flows, supported by the terms of any existing lease and other contracts and (when possible) by external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.

Impairment of investments in associates
Determining whether the company's investments in associates have been impaired requires estimations of the investments' values in use. The value in use calculations require the entity to estimate the future cash flows expected to arise from the investments and suitable discount rates in order to calculate present values.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold Property- On valuation
Plant and machinery- 25% on reducing balance
Fixtures and fittings- 25% on reducing balance
Motor Vehicles- 25% on reducing balance

Investments in associates
Investments in associate undertakings are recognised at cost less any provision for impairment.

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


2. ACCOUNTING POLICIES - continued

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 valued at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving stock.

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from fellow group and associated companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


2. ACCOUNTING POLICIES - continued

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 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Shoe sales 6,798,573 15,057,744
Commission income 1,898,300 515,397
Pallet storage income 176,984 61,569
8,873,857 15,634,710

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,873,857 15,634,710
8,873,857 15,634,710

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 609,466 391,673
Social security costs 34,429 45,979
Other pension costs 30,135 8,814
674,030 446,466

The average number of employees during the year was as follows:
2023 2022

Distribution staff 3 4
Sales and development staff 2 2
Administrative staff 2 2
7 8

2023 2022
£    £   
Directors' remuneration 187,677 163,526
Directors' pension contributions to money purchase schemes 871 749

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 24,719 8,449
Depreciation - owned assets 25,542 59,327
Profit on disposal of fixed assets - (9,486 )
Auditors' remuneration 12,000 10,000
Foreign exchange differences 49,152 806

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Impairment of investment - (118,540 )

The exceptional item in the prior year represents an impairment of the company's investment in Genesis Riverview Resorts PVT Limited, a company incorporated in India.

This impairment was deemed exceptional as it had arisen as a result of the impact of the COVID-19 pandemic on the hospitality trade across the world and the industry in which the investment company operates in.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 74,961 51,228

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 67,910 188,101
Prior year under provision 464 -
Total current tax 68,374 188,101

Deferred tax 47,594 10,090
Tax on profit 115,968 198,191

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:

2023 2022
£    £   
Profit before tax 529,970 623,403
Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2022 - 19%)

100,694

118,447

Effects of:
Expenses not deductible for tax purposes 2,969 62,060
Income not taxable for tax purposes (38,000 ) -
Depreciation in excess of capital allowances 1,845 7,594
Adjustments to tax charge in respect of previous periods 866 -

Deferred tax 47,594 10,090
Total tax charge 115,968 198,191

Tax effects relating to effects of other comprehensive income

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


8. TAXATION - continued

2022
Gross Tax Net
£    £    £   
Revaluation of freehold property 1,465,148 (254,167 ) 1,210,981

At Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1 April 2023. Deferred tax has therefore been calculated at the future rate of 25%.

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2022 5,900,000 289,026 335,550 - 6,524,576
Additions - - 1,999 54,000 55,999
At 31 March 2023 5,900,000 289,026 337,549 54,000 6,580,575
DEPRECIATION
At 1 April 2022 - 232,859 322,832 - 555,691
Charge for year - 14,155 3,512 7,875 25,542
At 31 March 2023 - 247,014 326,344 7,875 581,233
NET BOOK VALUE
At 31 March 2023 5,900,000 42,012 11,205 46,125 5,999,342
At 31 March 2022 5,900,000 56,167 12,718 - 5,968,885

Freehold property was valued in November 2021 by Brown & Lee Chartered Surveyors. The fair value of £5,900,000 was determined using an open market existing use basis and the Directors' opinion is that this is a true representation of the value of the property at 31 March 2023.

If the properties had not been included at valuation they would have been included under historical cost convention as follows

20232022
£   £   

Freehold property3,424,9763,424,976
Investment property 685,338 685,338
4,110,3144,110,314



MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


10. FIXED ASSET INVESTMENTS
Interest
in
associate
£   
COST
At 1 April 2022
and 31 March 2023 2,193,362
PROVISIONS
At 1 April 2022
and 31 March 2023 1,685,244
NET BOOK VALUE
At 31 March 2023 508,118
At 31 March 2022 508,118

At 31 March 2023 the company owned 25.06% of the shares in Genesis Riverview Resorts PVT Limited, a company incorporated in India.

11. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2022 1,300,000
Revaluations 200,000
At 31 March 2023 1,500,000
NET BOOK VALUE
At 31 March 2023 1,500,000
At 31 March 2022 1,300,000

Investment property was valued in December 2021 by Opes Real Estate. The fair value of £1,500,000 was assessed by the directors during the current financial year.

12. STOCKS
2023 2022
£    £   
Finished goods 3,455,173 1,701,553

13. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 867,181 1,080,275
Amounts owed by group undertakings - 803,028
Other debtors 690 1,890
Prepayments and accrued income 227,989 13,155
1,095,860 1,898,348

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


13. DEBTORS - continued
2023 2022
£    £   
Amounts falling due after more than one year:
Amounts owed by participating interests 886,284 1,031,430

Aggregate amounts 1,982,144 2,929,778

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 218,525 218,525
Trade creditors 244,983 6,073,910
Amounts owed to group undertakings 3,328,796 388,074
Corporation tax 67,508 188,101
Social security and other taxes - 5,951
VAT 67,841 167,908
Other creditors 18,360 13,178
Accruals and deferred income 87,386 88,109
4,033,399 7,143,756

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 16) 1,470,463 1,614,027

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 218,525 218,525

Amounts falling due between one and two years:
Bank loans - 1-2 years 218,525 218,525

Amounts falling due between two and five years:
Bank loans - 2-5 years 1,251,938 1,395,502

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 17,362 6,640
Between one and five years 29,701 -
47,063 6,640

MIRZA (UK) LIMITED (REGISTERED NUMBER: 02802325)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2023


18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 1,688,988 1,832,552

The bank loans are secured by a first charge over the company's freehold property.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 501,881 454,287

Deferred
tax
£   
Balance at 1 April 2022 454,287
Provided during year 47,594
Other comprehensive income
Balance at 31 March 2023 501,881

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,100 Ordinary £100 110,000 110,000

21. PENSION COMMITMENTS

The company makes payments to employees' own personal pension schemes. The pension charge represents contributions payable by the company to the schemes and amounted to £30,135 (2022: £8,814). £1,045 (2022:£1,078) was outstanding at the year end.

22. RELATED PARTY DISCLOSURES

In previous years, Mirza (UK) Limited made loans totalling £1,966,193 to other related parties. The balance outstanding on these loans as at 31 March 2023 was £886,284 (2022: £1,834,458).

KMP remuneration
The key management personnel are deemed to be the directors therefore no additional key management personnel remuneration disclosure is necessary.

23. ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking is Mirza International Limited, a company registered in Kanpur, India, The results of this company are included in the financial statements of Mirza International Limited, copies are available from its registered office: 14/6 Civil Lines, Kanpur, UP 208001, India.

The immediate parent company is RTS Fashion Limited, a company registered in Dubai.