Avtar Construction Limited 07166905 false 2023-03-01 2024-02-29 2024-02-29 The principal activity of the company is that of a civil engineering groundworks contractor for major residential housing developers. Digita Accounts Production Advanced 6.30.9574.0 true true true true 07166905 2023-03-01 2024-02-29 07166905 2024-02-29 07166905 bus:Director1 1 2024-02-29 07166905 bus:OrdinaryShareClass1 bus:CumulativeShares 2024-02-29 07166905 core:RetainedEarningsAccumulatedLosses 2024-02-29 07166905 core:ShareCapital 2024-02-29 07166905 core:HirePurchaseContracts core:CurrentFinancialInstruments 2024-02-29 07166905 core:CurrentFinancialInstruments 2024-02-29 07166905 core:CurrentFinancialInstruments core:WithinOneYear 2024-02-29 07166905 core:Non-currentFinancialInstruments 2024-02-29 07166905 core:Non-currentFinancialInstruments core:AfterOneYear 2024-02-29 07166905 core:BetweenTwoFiveYears 2024-02-29 07166905 core:WithinOneYear 2024-02-29 07166905 core:FurnitureFittings 2024-02-29 07166905 core:MotorVehicles 2024-02-29 07166905 core:PlantMachinery 2024-02-29 07166905 core:DeferredTaxation 2024-02-29 07166905 bus:FRS102 2023-03-01 2024-02-29 07166905 bus:Audited 2023-03-01 2024-02-29 07166905 bus:FullAccounts 2023-03-01 2024-02-29 07166905 bus:RegisteredOffice 2023-03-01 2024-02-29 07166905 bus:Director1 2023-03-01 2024-02-29 07166905 bus:Director1 1 2023-03-01 2024-02-29 07166905 bus:Director2 2023-03-01 2024-02-29 07166905 bus:Director3 2023-03-01 2024-02-29 07166905 bus:Director4 2023-03-01 2024-02-29 07166905 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-03-01 2024-02-29 07166905 bus:Consolidated 2023-03-01 2024-02-29 07166905 bus:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 07166905 1 2023-03-01 2024-02-29 07166905 core:RetainedEarningsAccumulatedLosses 2023-03-01 2024-02-29 07166905 core:ShareCapital 2023-03-01 2024-02-29 07166905 core:PlantEquipmentUnderOperatingLeases 2023-03-01 2024-02-29 07166905 core:FurnitureFittings 2023-03-01 2024-02-29 07166905 core:FurnitureFittingsToolsEquipment 2023-03-01 2024-02-29 07166905 core:MotorVehicles 2023-03-01 2024-02-29 07166905 core:PlantMachinery 2023-03-01 2024-02-29 07166905 core:UKTax 2023-03-01 2024-02-29 07166905 countries:EnglandWales 2023-03-01 2024-02-29 07166905 2023-02-28 07166905 bus:Director1 1 2023-02-28 07166905 core:RetainedEarningsAccumulatedLosses 2023-02-28 07166905 core:ShareCapital 2023-02-28 07166905 core:FurnitureFittings 2023-02-28 07166905 core:MotorVehicles 2023-02-28 07166905 core:PlantMachinery 2023-02-28 07166905 core:DeferredTaxation 2023-02-28 07166905 2022-03-01 2023-02-28 07166905 2023-02-28 07166905 bus:Director1 1 2023-02-28 07166905 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-02-28 07166905 core:RetainedEarningsAccumulatedLosses 2023-02-28 07166905 core:ShareCapital 2023-02-28 07166905 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-02-28 07166905 core:CurrentFinancialInstruments 2023-02-28 07166905 core:CurrentFinancialInstruments core:WithinOneYear 2023-02-28 07166905 core:Non-currentFinancialInstruments 2023-02-28 07166905 core:Non-currentFinancialInstruments core:AfterOneYear 2023-02-28 07166905 core:BetweenTwoFiveYears 2023-02-28 07166905 core:WithinOneYear 2023-02-28 07166905 core:FurnitureFittings 2023-02-28 07166905 core:MotorVehicles 2023-02-28 07166905 core:PlantMachinery 2023-02-28 07166905 bus:Director1 1 2022-03-01 2023-02-28 07166905 1 2022-03-01 2023-02-28 07166905 core:RetainedEarningsAccumulatedLosses 2022-03-01 2023-02-28 07166905 core:ShareCapital 2022-03-01 2023-02-28 07166905 core:PlantEquipmentUnderOperatingLeases 2022-03-01 2023-02-28 07166905 core:UKTax 2022-03-01 2023-02-28 07166905 2022-02-28 07166905 bus:Director1 1 2022-02-28 07166905 core:RetainedEarningsAccumulatedLosses 2022-02-28 07166905 core:ShareCapital 2022-02-28 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07166905

Avtar Construction Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2024

 

Avtar Construction Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 23

 

Avtar Construction Limited

Company Information

Directors

Mr P S Johal

Mrs K K Johal

Mr P Mazzotta

Mr G Carpinelli

Registered office

Unit 18 Hobley Drive
Swindon
Wiltshire
SN3 4NS

Auditors

UHY Ross Brooke
Chartered Accountants and Registered Auditors
16 Dorcan Business Village
Murdock Road, Dorcan
Swindon
Wiltshire
SN3 5HY

 

Avtar Construction Limited

Strategic Report for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

Principal activity

The principal activity of the company is that of a civil engineering groundworks contractor for major residential housing developers.

Fair review of the business

Avtar Construction Limited's principal activity is that of a civil engineering groundworks contractor for major residential housing developers.

The results for the year and financial position of the company are shown in the annexed accounts. The key financial highlights are as follows:

Turnover £19,597,370 (2023: £22,272,269)
Company gross profit £2,286,421 (11.67%) (2023: £2,178,221 (9.78%))
Profit/(loss) before tax £242,994 (1.3%) (2023: £476,387 (2.14%))
Profit for the financial year £175,280 (2023: £378,063)

Work Pipeline
The demand for groundworks and general construction in our area again remains high. Previous marketing campaigns have been successful, ensuring future works with new Clients. By working with new and existing clients, we are looking to ensure we capture a sizable share of the potential works in the region and increase our current geographical spread.

Health & Safety
Avtar Construction Ltd will continue to review Government guidance, take feedback from our employees and Clients and adapt our working practices accordingly, to ensure our staff work in the safest environment possible. On site Avtar Construction Ltd will continue to look for improvement to ensure a safe environment is maintained for all employees and associates of the company, across all locations in our jurisdiction. All sites will undertake a weekly-fortnightly internal audit with reports completed and issued accordingly.

We recognise that with good performance comes good quality of work and a better product for all our customers.
 

People Strategy
Training and continuous improvement will always remain a priority for the company, as we recognise that this will not only strengthen our relationships with clients, but also create new ideas and practices for the company required for the future. The emphasis on training, is to ensure all employees have the relevant resources tools, for development to perform their roles competently and productively.

Human Resources
Avtar Construction Ltd, is committed to ensuring that each employees wellbeing is being looked after, by subscribing to several memberships, in the construction industry, we have always sought advise, when the need has arisen, to ensure the best in employee welfare and occupational health.

Avtar Construction is focused on creating a wellbeing culture and over the next year, alongside Health and Safety and Occupational Health professionals we will champion preventative mental health and stress management, through coaching resources and confidential helplines.

 

 

Avtar Construction Limited

Strategic Report for the Year Ended 29 February 2024

Principal risks and uncertainties

Avtar Construction Ltd provides civil-engineering services to major house builders in the South-West region, although we do have a presence in the south-east and undertake smaller, but profitable projects, in counties across the UK. Although largely influenced by our clients, those own restrictions can be as a direct command from government, Avtar Construction Ltd believe it has the right business plan in place to ensure future business is not limited to current client base, geographical location, or broad activity.

The Directors and Management team regularly review the performance of the company to ensure steps can be taken to avert any situation that could cause an upset to the running of the business. Having a close relationship with our Clients (and Suppliers) helps us to understand and satisfy the expectation required, with regards to cost management for labour and materials information to the management team, allows for the ability to closely review and monitor the company's labour requirements and operational overheads, and continually develops its reporting management systems.

Retentions are staple in the construction industry, Avtar Construction Ltd takes this subject with great importance, to ensure retentions are recorded correctly and in a detailed format, and once the passing of time has gone, the retentions are agreed and collected in a contracted manner.

Avtar Construction Ltd employs the services of a third-party Health and Safety executive and undertakes regular reviews as part of the membership of several construction industry organisations. Safety on site is given principal importance due to the dangers involved. The company ensures the safety of all employees and subcontractors and provides adequate training before site work can commence. Comprehensive Risk Assessments and Method Statements are compiled and issued to all persons on site, by document as well toolbox talks, to deliver HSE protocol, policies and procedures to achieve a safe and healthy working environment. The company also seeks to work closely with clients to ensure the safety of all on site.
 

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
Mr P S Johal
Director

 

Avtar Construction Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr P S Johal

Mrs K K Johal

Mr P Mazzotta

Mr G Carpinelli

Going concern

The management team have prepared cash flow forecasts for the next financial year, the purpose and ability to carry out this exercise is based on the current list of projects we are presently undertaking and those projects we have won, which will start part way through the 2024/2025 financial year. The management team are satisfied that these forecasts, which take account of trading performance and the current economic climate, show a high level of optimism that the company has an adequate project portfolio to continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
Mr P S Johal
Director

 

Avtar Construction Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Avtar Construction Limited

Independent Auditor's Report to the Members of Avtar Construction Limited

Opinion

We have audited the financial statements of Avtar Construction Limited (the 'company') for the year ended 29 February 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 29 February 2024 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 auditor 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

 

Avtar Construction Limited

Independent Auditor's Report to the Members of Avtar Construction Limited

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 5], 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 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.

 

Avtar Construction Limited

Independent Auditor's Report to the Members of Avtar Construction Limited

Detecting irregularities, including fraud

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. As such, we have considered:

• the nature of the industry and sector, control environment and business performance including the company’s remuneration policy, bonus levels, and performance targets;

• the company’s own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;

• any matters we identified having reviewed the company’s policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• the matters discussed amongst the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and regulations concerning importing and exporting to and from the UK.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

 

Avtar Construction Limited

Independent Auditor's Report to the Members of Avtar Construction 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 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.

......................................
Emily Ness BFP FCA (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor

16 Dorcan Business Village
Murdock Road, Dorcan
Swindon
Wiltshire
SN3 5HY

31 July 2024

 

Avtar Construction Limited

Profit and Loss Account for the Year Ended 29 February 2024

Note

2024
£

2023
£

Turnover

3

19,597,370

22,272,269

Cost of sales

 

(17,310,949)

(20,094,048)

Gross profit

 

2,286,421

2,178,221

Administrative expenses

 

(2,032,744)

(1,682,433)

Operating profit

4

253,677

495,788

Other interest receivable and similar income

5

-

204

Interest payable and similar expenses

6

(10,683)

(19,605)

   

(10,683)

(19,401)

Profit before tax

 

242,994

476,387

Tax on profit

10

(67,714)

(98,324)

Profit for the financial year

 

175,280

378,063

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Avtar Construction Limited

(Registration number: 07166905)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

24,411

34,057

Current assets

 

Stocks

12

327,271

222,476

Debtors

13

4,343,811

3,905,123

Cash at bank and in hand

 

2,540

562,330

 

4,673,622

4,689,929

Creditors: Amounts falling due within one year

15

(3,849,981)

(3,729,899)

Net current assets

 

823,641

960,030

Total assets less current liabilities

 

848,052

994,087

Creditors: Amounts falling due after more than one year

15

(129,579)

(177,294)

Provisions for liabilities

16

(8,514)

(8,514)

Net assets

 

709,959

808,279

Capital and reserves

 

Called up share capital

100

100

Retained earnings

709,859

808,179

Shareholders' funds

 

709,959

808,279

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
Mr P S Johal
Director

 

Avtar Construction Limited

Statement of Changes in Equity for the Year Ended 29 February 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 March 2022

100

795,166

795,266

Profit for the year

-

378,063

378,063

Dividends

-

(365,050)

(365,050)

At 28 February 2023

100

808,179

808,279

Share capital
£

Profit and loss account
£

Total
£

At 1 March 2023

100

808,179

808,279

Profit for the year

-

175,280

175,280

Dividends

-

(273,600)

(273,600)

At 29 February 2024

100

709,859

709,959

 

Avtar Construction Limited

Statement of Cash Flows for the Year Ended 29 February 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

175,280

378,063

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

9,646

18,739

Finance income

5

-

(204)

Finance costs

6

10,683

19,605

Income tax expense

10

67,714

98,324

 

263,323

514,527

Working capital adjustments

 

Increase in stocks

12

(104,795)

(136,841)

Increase in trade debtors

13

(438,688)

(486,540)

Increase in trade creditors

15

47,336

785,435

Cash generated from operations

 

(232,824)

676,581

Income taxes paid

10

-

(64,999)

Net cash flow from operating activities

 

(232,824)

611,582

Cash flows from investing activities

 

Interest received

5

-

204

Acquisitions of tangible assets

-

(22,062)

Proceeds from sale of tangible assets

 

-

15,000

Net cash flows from investing activities

 

-

(6,858)

Cash flows from financing activities

 

Interest paid

6

(10,683)

(19,605)

Proceeds from bank borrowing draw downs

 

(41,666)

(224,637)

Payments to finance lease creditors

 

(1,017)

(3,919)

Dividends paid

(273,600)

(365,050)

Net cash flows from financing activities

 

(326,966)

(613,211)

Net decrease in cash and cash equivalents

 

(559,790)

(8,487)

Cash and cash equivalents at 1 March

 

562,330

570,817

Cash and cash equivalents at 29 February

 

2,540

562,330

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 18 Hobley Drive
Swindon
Wiltshire
SN3 4NS

These financial statements were authorised for issue by the Board on 31 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover from grounds work activities is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax payable.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

5 years straight line

Fixtures, fittings and equipment

3 and 5 years straight line

Motor vehicles

4 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

19,597,370

22,272,269

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

9,646

18,739

Operating lease expense - plant and machinery

2,465,733

2,438,882

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

-

146

Other finance income

-

58

-

204

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

10,683

12,089

Interest on obligations under finance leases and hire purchase contracts

-

192

Interest expense on other finance liabilities

-

7,324

10,683

19,605

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,712,393

2,909,902

Social security costs

393,057

350,773

Pension costs, defined contribution scheme

82,660

72,972

Other employee expense

22,490

5,961

4,210,600

3,339,608

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

2024
No.

2023
No.

Administration and support

20

20

Other departments

55

40

75

60

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

302,075

338,846

Contributions paid to money purchase schemes

27,335

27,468

329,410

366,314

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

4

4

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

14,000

12,350


 

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

67,714

101,291

Deferred taxation

Arising from origination and reversal of timing differences

-

(2,967)

Tax expense in the income statement

67,714

98,324

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 24.5% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

242,994

476,387

Corporation tax at standard rate

59,534

90,514

Effect of expense not deductible in determining taxable profit (tax loss)

5,817

6,349

Deferred tax credit relating to changes in tax rates or laws

-

(2,967)

Tax increase from effect of capital allowances and depreciation

2,363

4,428

Total tax charge

67,714

98,324

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

11

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

66,067

4,875

23,394

94,336

At 29 February 2024

66,067

4,875

23,394

94,336

Depreciation

At 1 March 2023

32,437

4,450

23,392

60,279

Charge for the year

9,532

112

2

9,646

At 29 February 2024

41,969

4,562

23,394

69,925

Carrying amount

At 29 February 2024

24,098

313

-

24,411

At 28 February 2023

33,630

425

2

34,057

12

Stocks

2024
£

2023
£

Other inventories

327,271

222,476

13

Debtors

Current

2024
£

2023
£

Trade debtors

3,827,978

3,601,517

Other debtors

456,810

276,731

Prepayments

59,023

26,875

 

4,343,811

3,905,123

Details of non-current trade and other debtors

£524,370 (2023 -£1,045,811) of trade debtors is classified as non current. Trade debtors include retentions due after 12 months.

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

14

Cash and cash equivalents

2024
£

2023
£

Cash at bank

2,540

562,330

15

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

19

41,667

36,635

Social security and other taxes

 

438,778

127,638

Other payables

 

3,165,031

3,400,306

Accruals

 

35,521

64,050

Income tax liability

10

168,984

101,270

 

3,849,981

3,729,899

Due after one year

 

Loans and borrowings

19

129,579

177,294

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2023

8,514

8,514

At 29 February 2024

8,514

8,514

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £82,660 (2023 - £72,972).

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

18

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary share of £1 each

100

100

100

100

         

19

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

129,579

177,294

2024
£

2023
£

Current loans and borrowings

Bank borrowings

41,667

35,618

Hire purchase contracts

-

1,017

41,667

36,635

20

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

-

987

 

Avtar Construction Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

45,206

60,647

Later than one year and not later than five years

32,068

26,629

77,274

87,276

The amount of non-cancellable operating lease payments recognised as an expense during the year was £80,787 (2023 - £71,289).

21

Related party transactions

During the year, related party transactions took place with Saint Zora Singh Lopan Charitable Trust of whom share mutual directors. The related party transactions totalled £3,500 during the year ended 29th February 2024.

Transactions with directors

2024

At 1 March 2023
£

Advances to director
£

At 29 February 2024
£

Mr P S Johal

16,645

15,413

32,058

       

2023

At 1 March 2022
£

Advances to director
£

Repayments by director
£

At 28 February 2023
£

Mr P S Johal

88,110

19,785

(91,250)

16,645