Company registration number 03594781 (England and Wales)
USHA MARTIN UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
USHA MARTIN UK LIMITED
COMPANY INFORMATION
Directors
Mr R Jhawar
Mr D B Gartner
Mr A Sanyal
Mr S Ravi
Mr T Gangopadhyay
Mr S Saha
Company number
03594781
Registered office
Sandy Lane
Worksop
Nottinghamshire
United Kingdom
S80 3ES
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
United Kingdom
PA4 8WF
USHA MARTIN UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
USHA MARTIN UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of Business

The operating results and financial position of the company for the year can be seen in the annexed financial statements.

 

The Directors manage the company's operations on a unified basis with Usha Martin International Limited, its parent company. For this reason, the Directors believe that analysis using key performance indicators for the company is not necessary or appropriate for an understanding of the development, performance or position of the company. Further information regarding the development, performance and position of the business, in the context of Usha Martin International Limited Group as a whole, is provided within its Report of the Directors, which does not form part of this report.

Principal risks and uncertainties

From the perspective of the company, the principal risks and uncertainties are integrated with the principal risks and uncertainties of Usha Martin International Limited Group and are not managed separately. Accordingly, the principal risks and uncertainties of the group, which include those of the company, are discussed within the group's Report of the Directors, which does not form part of this report.

 

Considering the current macro economic situation, the company is exposed to the following risks:

 

In order to mitigate this risk, necessary action is being taken to improve the overall supply chain with focus on leveraging Group capabilities. Indications are that the market will continue like this for the foreseeable future.

Employees training and development

We have consistently sought to recruit and retain the best employees in our market place. Members of the management team regularly visit divisions and discuss matters of current interest and concern to the business with members of staff.

 

The company is committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind.

Research and development

Directors are expecting to continue their focus on developing more value added products to expand the product range offered to customers.

 

We continue to invest in the design and implementation of new technology in order to continuously improve our production systems and techniques. The directors regard this investment as essential to the continuing success of the company

Financial instruments

Our financial risk management objectives are to ensure sufficient working capital for the company. This is achieved through careful management of our cash resources, and by obtaining overdraft and loan finance where necessary. Other than this, the use of financial instruments is not material for the assessment of the assets, liabilities, financial position and profit of the company.

USHA MARTIN UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Future developments

The Directors are confident that despite the prevailing difficult sector conditions & geopolitical turmoil the company will maintain and grow its market share and aims to remain profitable. Wherever necessary, the company will consider capital expenditure to enhance operating performance. The strength of our parent company, as well as our close and transparent customer and supplier relationships, puts the company in a strong position to continue to grow and move forward.

Directors’ Duties

The Directors of the Company, as those of all UK companies, must act in accordance with a set of general rules.
These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

 

The company seeks to ensure that it operates on an ethical and fair basis in a manner that helps foster agreeable relationships with is customers, suppliers and the wider business community. The company considers and takes steps where possible to mitigate and reduce the impact of adverse factors that may place unacceptable strain on valued business relationships. Aligned with this the company strives to set sector leading standards and achieve a reputation for a high degree of professional business conduct starting with employees through to suppliers, customer, shareholders and the wider community both locally and beyond.

 

Likewise, the company has policies in place to remove or minimise any possible adverse impact of the company’s operations on the wider community and environment. The company commits to adhere to and where possible go beyond all relevant legislation that seeks to protect the community and environment.

 

 

On behalf of the board

Mr S Saha
Director
29 April 2024
USHA MARTIN UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of manufacturing and trading in steel wire rope and wire products and related value-added services. The company is a wholly owned subsidiary of Usha Martin International Limited, a company incorporated in the UK.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends of £0.33 per share were paid to shareholders amounting to £1,270,500. The directors do not recommend payment of a further dividend.

Directors

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

Mr R Jhawar
Mr D B Gartner
Mr A Sanyal
Mr S Ravi
Mr T Gangopadhyay
Mr S Saha
Auditor

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

Energy and carbon report

This report is included in the directors report of the holding company, Usha Martin International Limited.

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.

On behalf of the board
Mr S Saha
Director
29 April 2024
USHA MARTIN UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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.

USHA MARTIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF USHA MARTIN UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Usha Martin UK Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

USHA MARTIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF USHA MARTIN UK LIMITED
- 6 -
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.

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.

USHA MARTIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF USHA MARTIN UK LIMITED
- 7 -

Extent to which the audit was considered capable of 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Nick Bennett ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
30 April 2024
Chartered Accountants
Statutory Auditor
Titanium 1
King's Inch Place
Renfrew
United Kingdom
PA4 8WF
USHA MARTIN UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£'000
£'000
Turnover
3
55,120
56,313
Cost of sales
(40,749)
(43,299)
Gross profit
14,371
13,014
Administrative expenses
(9,141)
(7,279)
Other operating income
8
8
Operating profit
4
5,238
5,743
Interest receivable and similar income
6
16
-
0
Interest payable and similar expenses
7
(33)
(5)
Profit before taxation
5,221
5,738
Tax on profit
8
(1,220)
(1,105)
Profit for the financial year
4,001
4,633
USHA MARTIN UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£'000
£'000
Profit for the year
4,001
4,633
Other comprehensive income
-
-
Total comprehensive income for the year
4,001
4,633
USHA MARTIN UK LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
10
19,124
17,498
Current assets
Stocks
11
17,096
15,085
Debtors
12
16,930
14,045
Cash at bank and in hand
1,688
3,180
35,714
32,310
Creditors: amounts falling due within one year
13
(16,521)
(14,150)
Net current assets
19,193
18,160
Total assets less current liabilities
38,317
35,658
Provisions for liabilities
Deferred tax liability
15
1,728
1,790
(1,728)
(1,790)
Government grants
16
(161)
(170)
Net assets
36,428
33,698
Capital and reserves
Called up share capital
18
3,850
3,850
Profit and loss reserves
19
32,578
29,848
Total equity
36,428
33,698
The financial statements were approved by the board of directors and authorised for issue on 29 April 2024 and are signed on its behalf by:
Mr S Saha
Director
Company Registration No. 03594781
USHA MARTIN UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 April 2022
3,850
25,215
29,065
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
4,633
4,633
Balance at 31 March 2023
3,850
29,848
33,698
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
4,001
4,001
Dividends
9
-
(1,271)
(1,271)
Balance at 31 March 2024
3,850
32,578
36,428
USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Usha Martin UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sandy Lane, Worksop, Nottinghamshire, United Kingdom, S80 3ES.

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 £'000.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

 

The financial statements of the company are consolidated in the financial statements of Usha Martin International Limited. These consolidated financial statements are available from its registered office, Sandy Lane, Worksop, Nottinghamshire, S80 3ES.

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.

The company has considered its stock levels, including goods in transit, along with future sources both from group and third-party suppliers and are satisfied that these will allow adequate supply of goods as required.

The current and future financial position of the company, its cash flows and liquidity position have been reviewed by the directors. The company has funds avaliable of £1.7m at 31 March 2024 with further finance facilities available. The directors are confident that the existing funding facilities will provide sufficient headroom to meet the forecast cash requirements having considered any additional requirements that would be contingent on a downturn in activity over the same period. The company's continued growth and long-term forecast outlook has provided further assurance to the directors regarding its financial position.

As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.4
Tangible fixed assets

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

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

Land and buildings
2% on cost
Leasehold land and buildings
Varying rates on cost
Plant and equipment
at varying rates on cost
Fixtures and fittings
at varying rates on reducing balance
Electronic equipment
25% on reducing balance
Motor vehicles
25% on cost
Improvements to property
20% on reducing balance

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

1.5
Impairment of fixed assets

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

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

 

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

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

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

1.6
Stocks

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

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

1.7
Cash and cash equivalents

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

1.8
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.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.9
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.

1.10
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.

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.

1.11
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

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

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants

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

 

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

 

Government grants based on capital expenditure are credited to the profit and loss account over the estimated useful life of the assets funded. Government grants of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.

1.15
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.

1.16

Research and development

Research expenditure is written off against profits in the year in which it is incurred, except that the development expenditure incurred on an individual project is carried forward when its future recoverability can be reasonably regarded as assured. Any expenditure carried forward is amortised in line with expected future sales from the related project.

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.

Stock and bad debt provisions

Stocks are valued at the lower of cost and selling price less costs to complete and sell. This includes, where necessary, provisions for slow moving stocks. Calculations of these provisions requires judgements to be made, including the competitive and economic environment and market trends.

 

Calculations made in respect of provisions for doubtful debts requires judgement. This judgement is based on customer base and the economic environment.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Turnover and other revenue

The turnover and profit before tax are attributable to the manufacture, sales and services relating to wire rope and associated products.

 

In the opinion of the directors it would be prejudicial to the interests of the group and the company to provide an analysis of turnover by geographical market.

 

 

2024
2023
£'000
£'000
Other revenue
Interest income
16
-
Grants received
8
8
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
36
80
Government grants
(8)
(8)
Fees payable to the company's auditor for the audit of the company's financial statements
74
43
Depreciation of owned tangible fixed assets
1,193
1,311
Profit on disposal of tangible fixed assets
(1)
(12)
Operating lease charges
132
131
5
Employees

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

2024
2023
Number
Number
Production
114
107
Administration, sales and distribution
63
59
Directors
6
6
Total
183
172
USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
6,293
5,970
Social security costs
654
559
Pension costs
226
135
7,173
6,664
6
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Other interest income
16
-
0
7
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on bank overdrafts and loans
33
5
8
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
1,219
1,107
Adjustments in respect of prior periods
1
(2)
Total current tax
1,220
1,105
USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 20 -

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

2024
2023
£'000
£'000
Profit before taxation
5,221
5,738
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,305
1,090
Tax effect of expenses that are not deductible in determining taxable profit
6
4
Adjustments in respect of prior years
1
(2)
Group relief
(121)
-
0
Depreciation on assets not qualifying for tax allowances
57
22
Deferred tax adjustments in respect of prior years
(28)
1
Remeasurement of deferred tax for changes in tax rates
-
0
(10)
Taxation charge for the year
1,220
1,105
9
Dividends
2024
2023
£'000
£'000
Final paid
1,271
-
0
USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Tangible fixed assets
Land and buildings
Plant and equipment
Fixtures and fittings
Electronic equipment
Motor vehicles
Improvements to property
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 April 2023
10,881
18,678
6
569
389
221
30,744
Additions
116
2,523
140
40
-
0
-
0
2,819
Disposals
-
0
(177)
-
0
-
0
-
0
-
0
(177)
At 31 March 2024
10,997
21,024
146
609
389
221
33,386
Depreciation and impairment
At 1 April 2023
2,386
9,797
6
498
385
174
13,246
Depreciation charged in the year
218
914
-
0
51
-
0
10
1,193
Eliminated in respect of disposals
-
0
(177)
-
0
-
0
-
0
-
0
(177)
At 31 March 2024
2,604
10,534
6
549
385
184
14,262
Carrying amount
At 31 March 2024
8,393
10,490
140
60
4
37
19,124
At 31 March 2023
8,495
8,881
-
0
71
4
47
17,498
USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Tangible fixed assets
(Continued)
- 22 -

Included with Land & Buildings is £780,000 (2023: £780,000) of property held under long leasehold.

11
Stocks
2024
2023
£'000
£'000
Raw materials and consumables
3,702
3,208
Work in progress
1,404
1,065
Finished goods and goods for resale
11,990
10,812
17,096
15,085

Included within finished goods and goods for resale is goods-in-transit totalling £4,088,000 (2023 - £2,775,000).

12
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
12,098
9,923
Amounts owed by group undertakings
4,300
2,226
Other debtors
-
0
700
Prepayments and accrued income
532
1,196
16,930
14,045
13
Creditors: amounts falling due within one year
2024
2023
Notes
£'000
£'000
Bank loans and overdrafts
14
774
-
0
Trade creditors
4,324
3,847
Amounts owed to group undertakings
9,697
7,171
Corporation tax
539
221
Other taxation and social security
315
-
0
Accruals and deferred income
872
2,911
16,521
14,150

A bonds, guarantees, indemnities and standby LC's facility of £675,000 has been secured against the property at Kirkhill Industrial Estate, Dyce and the property at Sandy Lane, Worksop.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
14
Loans and overdrafts
2024
2023
£'000
£'000
Bank overdrafts
774
-
0
Payable within one year
774
-
0

 

15
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
1,712
1,724
Revaluations
16
66
1,728
1,790
2024
Movements in the year:
£'000
Liability at 1 April 2023
1,790
Credit to profit or loss
(62)
Liability at 31 March 2024
1,728
16
Government grants
2024
2023
£'000
£'000
Arising from government grants
161
170

The value of the government grant deferred as at 31 March 2024 is £161,000 (2023 - £170,000). Amounts due within one year are £8,000 with £154,000 due after one year.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
226
135

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary of £1 each
3,850,000
3,850,000
3,850
3,850

All shares rank pari passu and have equal rights to dividends and share of any distribution of assets.

19
Profit and loss reserves
2024
2023
£'000
£'000
At the beginning of the year
29,848
25,215
Profit for the year
4,001
4,633
Dividends declared and paid in the year
(1,271)
-
At the end of the year
32,578
29,848

Included within total retained earnings above are non-distributable reserves of £529,000 (2023: £529,000).

20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£'000
£'000
Within one year
108
108
Between two and five years
434
434
In over five years
5,772
5,880
6,314
6,422
21
Financial commitments, guarantees and contingent liabilities

At 31 March 2024, there were bank guarantees held at Barclays Commercial Bank amounting to £647,000 (2023: £92,000) in respect of performance bonds and other obligations.

USHA MARTIN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
22
Other financial commitments

The company have entered into forward foreign exchange contracts at the year end totalling £Nil (2023: £660,000) in order to mitigate the effect of movements in foreign exchange.

23
Related party transactions

The company has taken advantage of the exemption, under the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

24
Ultimate controlling party

The company's immediate parent company is Usha Martin International Limited, a company incorporated in Great Britain and registered in England & Wales.

 

Usha Martin Limited, a company incorporated in India, is the ultimate parent undertaking. Copies of the accounts of the ultimate parent undertaking may be obtained by writing to the Company Secretary at Usha Martin Limited, 2A, Shakespeare Sarani, Kolkata 700 071, India.

25
Financial risk management

The company has exposures to three main areas of risk - foreign exchange currency exposure, liquidity risk and interest rate risk.

 

Foreign exchange transactional currency exposure

The company is exposed to currency exchange rate risk due to a significant proportion of its receivables, payables and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contracts or overdraft facility. The forward foreign exchange contracts all mature within 12 months.

 

Liquidity risk

The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The group expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations, the company has credit facilities available. The company has bank borrowings of £774k at 31 March 2024 however, it is in a position to meet its commitments and obligations as they fall due.

 

Interest rate risk

The company borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the asset and management's view of the future direction of interest rate.

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