Registered number:
For the Year Ended
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Asha Expo & Co Limited
Company Information
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Asha Expo & Co Limited
Contents
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Asha Expo & Co Limited
Strategic report
For the Year Ended 31 July 2023
The directors present the strategic report for the year ended 31 July 2023.
Despite the difficult trading conditions due to unprecedented global inflation, the company managed to increase its turnover from £17.9m in 2022 to £19m in 2023. The operating profits increased to £305k in the current year from £162k in 2022. Despite the significant rise in interest costs due to the Bank of England's sharp increase in the base rate, the company achieved a notable improvement in its financial performance, with profits before tax rising to £175k in the current year from £82k in 2022. As at the balance sheet date, the company's net assets were £506k compared to £395k in 2022. The directors are satisfied with the performance of the company and expect a steady growth in profitability in the foreseeable future as the global inflation has been normalised over the recent months.
The directors have identified the following principal risks for the operation of the company:
∙The prices of scrap metal in the global market are highly volatile and subject to fluctuations. These changes are influenced by supply and demand dynamics and global market conditions. The directors consistently monitor and track global market prices to ensure that fluctuations do not pose operational risks to the business.
∙The availability of international shipping and logistics poses significant risk. The company has implemented alternative logistics solutions to streamline operations and reduce transportation costs during peak times, thereby mitigating associated risks.
Turnover, gross margin and operating profits are used as the key performance indicators by the company.
This report was approved by the board on 23 August 2024 and signed on its behalf.
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Asha Expo & Co Limited
Directors' report
For the Year Ended 31 July 2023
The directors present their report and the financial statements for the year ended 31 July 2023.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The profit for the year, after taxation, amounted to £134,651 (2022 - £60,381).
During the year, the Company paid interim dividends of £24,500 (2022: £55,594).
The directors who served during the year were:
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Asha Expo & Co Limited
Directors' report (continued)
For the Year Ended 31 July 2023
There have been no significant events affecting the Company since the year end.
The auditors, Mantax Lynton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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Asha Expo & Co Limited
Independent auditors' report to the members of Asha Expo & Co Limited
We have audited the financial statements of Asha Expo & Co Limited (the 'Company') for the year ended 31 July 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
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Asha Expo & Co Limited
Independent auditors' report to the members of Asha Expo & Co Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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.
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Asha Expo & Co Limited
Independent auditors' report to the members of Asha Expo & Co Limited (continued)
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 Auditors' 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:
∙We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and relevant taxation legislation.
∙We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition, carrying value of intangibles and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases, corroborating revenue recognised by the company through agreements to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.
∙Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
∙These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
In the previous accounting period, the directors of the company took advantage of audit exemption under section 477 of the Companies Act 2006. Hence, the prior period Financial Statements as shown in comparatives were not subject to audit.
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Asha Expo & Co Limited
Independent auditors' report to the members of Asha Expo & Co Limited (continued)
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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
2nd Floor Equitable House
7 General Gordon Square
United Kingdom
SE18 6FH
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Asha Expo & Co Limited
Statement of comprehensive income
For the Year Ended 31 July 2023
Page 8
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Asha Expo & Co Limited
Registered number: 06311578
Statement of financial position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 24 form part of these financial statements.
Page 9
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Asha Expo & Co Limited
Statement of changes in equity
For the Year Ended 31 July 2023
Page 10
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Asha Expo & Co Limited
Statement of cash flows
For the Year Ended 31 July 2023
Page 11
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Asha Expo & Co Limited
Analysis of Net Debt
For the Year Ended 31 July 2023
Page 12
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
Asha Expo & Co Ltd is a private company, limited by shares, incorporated in England & Wales with registered number 06311578. The company's registered office is located at Vista Centre, 50 Salisbury Road, Hounslow, TW4 6JQ. Principal activity of the company during the year under review was export of scrap metals.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
2.Accounting policies (continued)
immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
Page 18
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
There were no factors that may affect future tax charges.
Page 19
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
Page 20
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
The 2023 valuations were made by the directors, on an open market value for existing use basis.
Page 21
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
Page 22
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
Profit and loss account
Page 23
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Asha Expo & Co Limited
Notes to the financial statements
For the Year Ended 31 July 2023
In the previous accounting period, the company did not account for the interest on bank loans and HP loans amounting to £46,390. This error caused the retained earning overstated and loans understated by £46,390 in the prior period financial statement.
In the previous accounting period sales amounting to £710k were not recorded and included in closing stock. This error caused both sales and cost of sales to be understated by £710k but there was no impact on retained earnings. Due to this error, inventory were overstated and trade debtors were understated by £710k in the prior period financial statements, but there was no impact on net current assets. Both of these errors were corrected as prior year adjustments during the year.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £144 (2022: £286) . Contributions totaling £1,127 (2022: £764) were payable to the fund at the reporting date and are included in creditors.
The company is controlled by S Thakur and A Thakur.
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