Company Registration No. 06527928 (England and Wales)
NSL GROUP LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
NSL GROUP LIMITED
COMPANY INFORMATION
Directors
Mr K Mehta
Mr B Mehta
Secretary
Mr K Mehta
Company number
06527928
Registered office
Unit 4/5 Northolt Trading Estate
Belvue Road
Northolt
UB5 5QS
Auditor
Hindocha & Co Limited
Chartered Accountants and Statutory Auditors
34 Queensbury Station Parade
Edgware
Middlesex
HA8 5NN
Solicitors
R R Sanghvi & Co Solicitors
Sherwood House
176 Northolt Road
South Harrow
HA2 0NP
NSL GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
NSL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

NSL (Holdings) Limited is the immediate parent company of NSL Group Limited in which the company is consolidated.

 

The business review of the group can be found in the consolidated financial statements and annual report of NSL (Holdings) Limited for the year end 31 October 2023, 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. During the year the company continued in its capacity as the parent company for Necessity Supplies Limited and Primecrown Limited, in the management of its subsidiaries.

Principal risks and uncertainties
The company's directors monitor the overall risk profile of the company. In addition, the directors are responsible for determining clear policies as to what the company considers to be acceptable levels of risk. These policies seek to enable the company to identify risks that could undermine performance and to devise ways of bringing them to within acceptable levels.

The company is exposed to currency, credit and interest rate risk. The company's directors manage these risks at a group level in accordance with risk management policy of the group. Group risks are discussed in the Group's Annual Report, which does not form part of this report.
Development and performance

The company did not receive any income during the year from its subsidiary undertakings.

 

The operating loss was £1,483 (2022 - £1,118)

 

During the year, company declared dividend of £3,000,000 (2022 - £nil) to its immediate parent undertaking to clear the inter company balances.

 

The company's retained profit for the financial year was £8,477,199 (2022 - £11,476,603)

By order of the board

Mr K Mehta
Secretary
31 July 2024
NSL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the parent company continued to be that of a holding company.

 

The principal activities of its subsidiary undertakings:

 

Necessity Supplies Limited - importers, exporters and wholesalers of pharmaceutical products.

 

Primecrown Limited went into liquidation on 26th June 2024 and did not trade during the year.

Directors

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

Mr K Mehta
Mr B Mehta
Results and dividends

The results for the year are set out on page 7.

Post reporting date events

Primecrown Limited, a subsidiary company went into liquidation after year end on 26th June 2024. The company did not trade since 25 September 2019 following its acceptance of certain liabilities, which exceeded its assets.

Auditor

The auditor, Hindocha & Co Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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.

NSL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
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 company’s auditor 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 company’s auditor is aware of that information.

By order of the board
Mr K Mehta
Secretary
31 July 2024
NSL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NSL GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of NSL GROUP LIMITED (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

NSL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NSL GROUP LIMITED
- 5 -
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 directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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:

 

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with the director and from our knowledge of the industry in which it operates;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through our audit testing and making enquiries of management; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

 

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

 

NSL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NSL GROUP LIMITED
- 6 -

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

 

• performed analytical procedures to identify any unusual or unexpected relationships;

• performed relevant tests selected from corroborative documentation and information to identify understatement;

• reviewed the records for unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

• tested journal entries to identify unusual transactions;

• investigated the rationale behind significant or unusual transactions.

 

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

 

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with relevant regulators and the legal advisors.

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, collusion, omission or misrepresentation.

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.

Yashlal Hindocha BA,FCA (Senior Statutory Auditor)
For and on behalf of Hindocha & Co Limited
31 July 2024
Chartered Accountants and Statutory Auditors
34 Queensbury Station Parade
Edgware
Middlesex
HA8 5NN
NSL GROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Administrative expenses
(1,383)
(1,118)
Amounts written off investments
5
(100)
-
Loss before taxation
(1,483)
(1,118)
Tax on loss
6
2,079
212
Profit/(loss) for the financial year
596
(906)

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

NSL GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
Profit/(loss) for the year
596
(906)
Other comprehensive income
-
-
Total comprehensive loss for the year
596
(906)
NSL GROUP LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
8
8,833,432
8,833,532
Current assets
Debtors
10
12,697
3,010,618
Cash at bank and in hand
-
0
4
12,697
3,010,622
Creditors: amounts falling due within one year
11
(7,251)
(366,551)
Net current assets
5,446
2,644,071
Total assets less current liabilities
8,838,878
11,477,603
Creditors: amounts falling due after more than one year
12
(360,679)
-
0
Net assets
8,478,199
11,477,603
Capital and reserves
Called up share capital
15
500
500
Capital redemption reserve
16
500
500
Profit and loss reserves
17
8,477,199
11,476,603
Total equity
8,478,199
11,477,603

 

The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
Mr K Mehta
Director
Company registration number 06527928 (England and Wales)
NSL GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
500
500
11,477,509
11,478,509
Year ended 31 October 2022:
Loss and total comprehensive income
-
-
(906)
(906)
Balance at 31 October 2022
500
500
11,476,603
11,477,603
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
596
596
Dividends
7
-
-
(3,000,000)
(3,000,000)
Balance at 31 October 2023
500
500
8,477,199
8,478,199
NSL GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
2,639,316
-
0
Financing activities
Repayment of borrowings
360,679
-
0
Dividends paid
(3,000,000)
-
0
Net cash used in financing activities
(2,639,321)
-
Net (decrease)/increase in cash and cash equivalents
(5)
-
0
Cash and cash equivalents at beginning of year
4
4
Cash and cash equivalents at end of year
(1)
4
Relating to:
Cash at bank and in hand
-
0
4
Bank overdrafts included in creditors payable within one year
(1)
-
0
NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
1
Accounting policies
Company information

NSL GROUP LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4/5 Northolt Trading Estate, Belvue Road, Northolt, UB5 5QS.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

NSL GROUP LIMITED is a wholly owned subsidiary of NSL (Holdings) Limited and the results of NSL GROUP LIMITED are included in the consolidated financial statements of NSL (Holdings) Limited which are available from Unit 4/5 Northolt Trading Estate, Belvue Road, Northolt, Middlesex, UB5 5QS.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.4
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.

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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 company 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 company after deducting all of its liabilities.

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Equity instruments

Equity instruments issued by the company 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 company.

1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
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 when the company has 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.

1.8
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 company’s accounting policies, the directors are 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.

Impairment of Fixed assets investments

As described in note 8 to the financial statements, fixed assets investment are stated at cost and no impairment required for the value as at reporting date. Directors considers Necessity supplies Limited value is more than the cost stated for the fixed assets investments. Based on assumption used by the director no impairment provided during the year.

 

3
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
1,250
1,000
NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
4
Employees

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

2023
2022
Number
Number
Directors
2
2
5
Amounts written off investments
2023
2022
£
£
Other gains and losses
(100)
-
6
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(2,079)
(212)

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

2023
2022
£
£
Loss before taxation
(1,483)
(1,118)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(371)
(212)
Tax effect of expenses that are not deductible in determining taxable profit
25
-
0
Unutilised tax losses carried forward
346
212
Change in unrecognised deferred tax assets
(2,079)
(212)
Taxation credit for the year
(2,079)
(212)

The company has estimated losses of £30,268 (2022 - £28,885) available for carry forward against future trading profits.

 

On the basis of these financial statements no provision has been made for corporation tax.

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
7
Dividends
2023
2022
£
£
Interim paid
3,000,000
-
0
8
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
9
8,833,432
8,833,532
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022
8,833,532
Disposals
(100)
At 31 October 2023
8,833,432
Carrying amount
At 31 October 2023
8,833,432
At 31 October 2022
8,833,532

The investment in subsidiary, Primecrown Limited, has been written off following the company's liquidation on 26 June 2024.

9
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Necessity Supplies Limited
England and Wales
Importers, exporters and
wholesalers of
pharmaceutical products
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Necessity Supplies Limited
6,800,939
(954,195)
NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Subsidiaries
(Continued)
- 18 -

The investments in subsidiaries are all stated at cost.

10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
5,130
3,005,130
Deferred tax asset (note 14)
7,567
5,488
12,697
3,010,618
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
1
-
0
Amounts owed to group undertakings
-
0
359,301
Accruals and deferred income
7,250
7,250
7,251
366,551
12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
13
360,679
-
0
13
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
1
-
0
Amounts owed to group undertakings
360,679
-
0
360,680
-
0
Payable within one year
1
-
0
Payable after one year
360,679
-
0

 

 

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Tax losses
7,567
5,488
2023
Movements in the year:
£
Asset at 1 November 2022
(5,488)
Credit to profit or loss
(2,079)
Asset at 31 October 2023
(7,567)

 

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
16
Capital redemption reserve
2023
2022
£
£
At the beginning and end of the year
500
500
17
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
11,476,603
11,477,509
Profit/(loss) for the year
596
(906)
Dividends declared and paid in the year
(3,000,000)
-
At the end of the year
8,477,199
11,476,603
18
Related party transactions

The company has taken advantage of the exemption provided in FRS 102 "Related Party Disclosures" , as the consolidated financial statements of the ultimate parent company are publicly available.

 

NSL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
19
Ultimate controlling party

The company is under the common control of the directors, Mr K Mehta and Mr B Mehta, who are controlling shareholders and directors of the ultimate parent undertaking, NSL (Holdings) Limited.

20
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit/(loss) for the year after tax
596
(906)
Adjustments for:
Taxation credited
(2,079)
(212)
Other gains and losses
100
-
Movements in working capital:
Decrease in debtors
3,000,000
-
0
(Decrease)/increase in creditors
(359,301)
1,118
Cash generated from/(absorbed by) operations
2,639,316
-
21
Analysis of changes in net funds/(debt)
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
4
(4)
-
Bank overdrafts
-
0
(1)
(1)
4
(5)
(1)
Borrowings excluding overdrafts
-
(360,679)
(360,679)
4
(360,684)
(360,680)
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