Caseware UK (AP4) 2023.0.135 2023.0.135 2022-08-014falseWholesale of metals and metal ores5falsefalse 06311578 2022-08-01 2023-07-31 06311578 2023-07-31 06311578 2022-07-31 06311578 2022-08-01 2023-07-31 06311578 2021-08-01 2022-07-31 06311578 2023-07-31 06311578 2022-07-31 06311578 2021-08-01 06311578 c:PriorPeriodIncreaseDecrease 2022-08-01 2023-07-31 06311578 2 2022-08-01 2023-07-31 06311578 2 2021-08-01 2022-07-31 06311578 4 2022-08-01 2023-07-31 06311578 4 2021-08-01 2022-07-31 06311578 5 2022-08-01 2023-07-31 06311578 5 2021-08-01 2022-07-31 06311578 e:Director1 2022-08-01 2023-07-31 06311578 e:Director2 2022-08-01 2023-07-31 06311578 e:RegisteredOffice 2022-08-01 2023-07-31 06311578 c:MotorVehicles 2022-08-01 2023-07-31 06311578 c:MotorVehicles 2023-07-31 06311578 c:MotorVehicles 2022-07-31 06311578 c:MotorVehicles c:OwnedOrFreeholdAssets 2022-08-01 2023-07-31 06311578 c:OfficeEquipment 2022-08-01 2023-07-31 06311578 c:OfficeEquipment 2023-07-31 06311578 c:OfficeEquipment 2022-07-31 06311578 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-08-01 2023-07-31 06311578 c:OwnedOrFreeholdAssets 2022-08-01 2023-07-31 06311578 c:FreeholdInvestmentProperty 2023-07-31 06311578 c:FreeholdInvestmentProperty 2022-07-31 06311578 c:CurrentFinancialInstruments 2023-07-31 06311578 c:CurrentFinancialInstruments 2022-07-31 06311578 c:Non-currentFinancialInstruments 2023-07-31 06311578 c:Non-currentFinancialInstruments 2022-07-31 06311578 c:CurrentFinancialInstruments c:WithinOneYear 2023-07-31 06311578 c:CurrentFinancialInstruments c:WithinOneYear 2022-07-31 06311578 c:Non-currentFinancialInstruments c:AfterOneYear 2023-07-31 06311578 c:Non-currentFinancialInstruments c:AfterOneYear 2022-07-31 06311578 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-07-31 06311578 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-07-31 06311578 c:ReportableOperatingSegment1 2022-08-01 2023-07-31 06311578 c:ReportableOperatingSegment1 2021-08-01 2022-07-31 06311578 c:UKTax 2022-08-01 2023-07-31 06311578 c:UKTax 2021-08-01 2022-07-31 06311578 c:ShareCapital 2022-08-01 2023-07-31 06311578 c:ShareCapital 2023-07-31 06311578 c:ShareCapital 2021-08-01 2022-07-31 06311578 c:ShareCapital 2022-07-31 06311578 c:ShareCapital 2021-08-01 06311578 c:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 06311578 c:RetainedEarningsAccumulatedLosses 2023-07-31 06311578 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2022-08-01 2023-07-31 06311578 c:RetainedEarningsAccumulatedLosses 2021-08-01 2022-07-31 06311578 c:RetainedEarningsAccumulatedLosses 2022-07-31 06311578 c:RetainedEarningsAccumulatedLosses 2021-08-01 06311578 e:OrdinaryShareClass1 2022-08-01 2023-07-31 06311578 e:OrdinaryShareClass1 2023-07-31 06311578 e:OrdinaryShareClass1 2022-07-31 06311578 e:FRS102 2022-08-01 2023-07-31 06311578 e:Audited 2022-08-01 2023-07-31 06311578 e:FullAccounts 2022-08-01 2023-07-31 06311578 e:PrivateLimitedCompanyLtd 2022-08-01 2023-07-31 06311578 c:WithinOneYear 2023-07-31 06311578 c:WithinOneYear 2022-07-31 06311578 f:PoundSterling 2022-08-01 2023-07-31 06311578 c:ShareCapital c:PriorPeriodErrorIncreaseDecrease 2022-08-01 2023-07-31 06311578 c:RetainedEarningsAccumulatedLosses c:PreviouslyStatedAmount 2022-07-31 06311578 c:PreviouslyStatedAmount 2022-07-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06311578









Asha Expo & Co Limited









Annual report and financial statements

For the Year Ended 31 July 2023

 
Asha Expo & Co Limited
 
 
Company Information


Directors
Asha Thakur 
Shailender Singh Thakur 




Registered number
06311578



Registered office
Vista Centre
50 Salisbury Road, Hounslow

TW4 6JQ




Independent auditors
Mantax Lynton
Chartered Accountants & Statutory Auditors

2nd Floor Equitable House

7 General Gordon Square

London

United Kingdom

SE18 6FH




Accountants
Kaman & Co
Chartered Certified Accountants

Suite 18, Block B, 2nd Floor, Vista Centre

50 Salisbury Road

Hounslow

TW4 6JQ





 
Asha Expo & Co Limited
 

Contents



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24


 
Asha Expo & Co Limited
 
 
Strategic report
For the Year Ended 31 July 2023

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

Business review
 
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.  

Principal risks and uncertainties
 
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.

Financial key performance indicators
 
Turnover, gross margin and operating profits are used as the  key performance indicators by the company. 

2023
2022
Turnover
19,006,312
17,942,734
Gross Margin
3.23%
2.38%
Operating profits
305,394
162,177



This report was approved by the board on 23 August 2024 and signed on its behalf.



Asha Thakur
Director

Page 1

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 2006They 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.

Results and dividends

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).

Directors

The directors who served during the year were:

Asha Thakur 
Shailender Singh Thakur 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
Asha Expo & Co Limited
 
 
 
Directors' report (continued)
For the Year Ended 31 July 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 August 2024 and signed on its behalf.
 





Asha Thakur
Director

Page 3

 
Asha Expo & Co Limited
 
 
 
Independent auditors' report to the members of Asha Expo & Co Limited
 

Opinion


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 July 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


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.


Page 4

 
Asha Expo & Co Limited
 
 
 
Independent auditors' report to the members of Asha Expo & Co Limited (continued)


Other information


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the 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.


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:


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 Directors' responsibilities statement set out on page 2, 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.


Page 5

 
Asha Expo & Co Limited
 
 
 
Independent auditors' report to the members of Asha Expo & Co Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.


Other matters 
 

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. 


Page 6

 
Asha Expo & Co Limited
 
 
 
Independent auditors' report to the members of Asha Expo & Co Limited (continued)


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 2006Our 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.





Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chartered Accountants & Statutory Auditors
  
2nd Floor Equitable House
7 General Gordon Square
London
United Kingdom
SE18 6FH

23 August 2024
Page 7

 
Asha Expo & Co Limited
 
 
Statement of comprehensive income
For the Year Ended 31 July 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
19,006,312
17,942,734

Cost of sales
  
(18,392,568)
(17,515,786)

Gross profit
  
613,744
426,948

Administrative expenses
  
(308,350)
(274,731)

Other operating income
  
-
9,960

Operating profit
 5 
305,394
162,177

Interest payable and similar expenses
 9 
(130,485)
(79,484)

Profit before tax
  
174,909
82,693

Tax on profit
 10 
(40,258)
(22,312)

Profit for the financial year
  
134,651
60,381

Other comprehensive income for the year
  

Total comprehensive income for the year
  
134,651
60,381

The notes on pages 13 to 24 form part of these financial statements.

Page 8

 
Asha Expo & Co Limited
Registered number: 06311578

Statement of financial position
As at 31 July 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
114,812
131,608

Investment property
  
108,307
108,307

  
223,119
239,915

Current assets
  

Debtors: amounts falling due within one year
 14 
6,639,639
9,364,414

Cash at bank and in hand
 15 
807,048
52,730

  
7,446,687
9,417,144

Creditors: amounts falling due within one year
 16 
(7,070,325)
(9,115,354)

Net current assets
  
 
 
376,362
 
 
301,790

Total assets less current liabilities
  
599,481
541,705

Creditors: amounts falling due after more than one year
 17 
(93,503)
(145,878)

  

Net assets
  
505,978
395,827


Capital and reserves
  

Called up share capital 
 19 
2,000
2,000

Profit and loss account
 20 
503,978
393,827

  
505,978
395,827


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2024.




Asha Thakur
Director

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
Asha Expo & Co Limited
 

Statement of changes in equity
For the Year Ended 31 July 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2021
2,000
389,040
391,040


Comprehensive income for the year

Profit for the year

-
60,381
60,381


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
60,381
60,381


Contributions by and distributions to owners

Dividends: Equity capital
-
(55,594)
(55,594)


Total transactions with owners
-
(55,594)
(55,594)



At 1 August 2022 (as previously stated)
2,000
440,217
442,217

Prior year adjustment - correction of error
-
(46,390)
(46,390)


At 1 August 2022 (as restated)
2,000
393,827
395,827


Comprehensive income for the year

Profit for the year

-
134,651
134,651


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
134,651
134,651


Contributions by and distributions to owners

Dividends: Equity capital
-
(24,500)
(24,500)


Total transactions with owners
-
(24,500)
(24,500)


At 31 July 2023
2,000
503,978
505,978


The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
Asha Expo & Co Limited
 

Statement of cash flows
For the Year Ended 31 July 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
174,909
82,693

Adjustments for:

Depreciation of tangible assets
16,796
17,453

Interest paid
130,485
33,094

Decrease in stocks
-
25,000

Decrease/(increase) in debtors
2,724,775
(8,195,575)

(Decrease)/increase in creditors
(3,696,673)
7,854,616

Increase/(decrease)) in amounts owed to connected companies
225,009
(4,550)

Corporation tax (paid)
(32,502)
(22,233)

Net cash generated from operating activities

(457,201)
(209,502)



Cash flows from financing activities

New secured loans
46,993
-

Repayment of loans
-
(173,479)

Repayment of other loans
(52,375)
-

Repayment of/new finance leases
(21,215)
-

Dividends paid
(24,500)
(55,594)

Interest paid
(130,485)
(33,094)

Net cash used in financing activities
(181,582)
(262,167)

Net (decrease) in cash and cash equivalents
(638,783)
(471,669)

Cash and cash equivalents at beginning of year
52,730
524,399

Cash and cash equivalents at the end of year
(586,053)
52,730


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
807,048
52,730

Bank overdrafts
(1,393,101)
-

(586,053)
52,730


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
Asha Expo & Co Limited
 

Analysis of Net Debt
For the Year Ended 31 July 2023




At 1 August 2022
Cash flows
At 31 July 2023
£

£

£

Cash at bank and in hand

52,730

754,318

807,048

Bank overdrafts

-

(1,393,101)

(1,393,101)

Debt due after 1 year

(145,878)

52,375

(93,503)

Debt due within 1 year

(191,440)

(46,993)

(238,433)

Finance leases

(128,665)

21,215

(107,450)


(413,253)
(612,186)
(1,025,439)

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 14

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Motor vehicles
-
10%
SLM
Office equipment
-
10%
SLM

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.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 15

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Financial instruments

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
Page 16

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

2.Accounting policies (continued)


2.15
Financial instruments (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.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Revision to accounting estimates are recognised in the period in which the estimate is revised.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales of goods
19,006,312
17,942,734

19,006,312
17,942,734


An analysis of turnover by geographical markets has not been disclosed since in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the company.

Page 17

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
43,140
46,488

Other operating lease rentals
9,292
9,000


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable for the audit of the Company's financial statements
7,500
-

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
89,585
82,902

Social security costs
971
451

Cost of defined contribution scheme
144
286

90,700
83,639


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
5
4


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
37,333
35,100

37,333
35,100


Page 18

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Interest payable
130,485
79,484

130,485
79,484


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
40,258
22,312


40,258
22,312


Total current tax
40,258
22,312

Deferred tax

Total deferred tax
-
-


Tax on profit
40,258
22,312

Factors affecting tax charge for the year

There were no factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of  19% up to 31 March  2023 and @25% thereafter  (2022 - 19%).



Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

11.


Dividends

2023
2022
£
£


Final dividends
24,500
55,594

24,500
55,594


12.


Tangible fixed assets





Motor vehicles
Office equipment
Total

£
£
£



Cost or valuation


At 1 August 2022
161,667
6,436
168,103



At 31 July 2023

161,667
6,436
168,103



Depreciation


At 1 August 2022
32,332
4,163
36,495


Charge for the year on owned assets
16,167
629
16,796



At 31 July 2023

48,499
4,792
53,291



Net book value



At 31 July 2023
113,168
1,644
114,812

As at 31 July 2023, the net book value of motor vehicles under hire purchase lease agreements was £113,168 (2022 - £129,335).

Page 20

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

13.


Investment property


Freehold investment property

£



Valuation


At 1 August 2022
108,307



At 31 July 2023
108,307

The 2023 valuations were made by the directors, on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
108,307
108,307

108,307
108,307


14.


Debtors

2023
2022
£
£


Trade debtors
6,393,413
9,237,464

Other debtors
154,162
111,434

Prepayments and accrued income
92,064
15,516

6,639,639
9,364,414



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
807,048
52,730

Less: bank overdrafts
(1,393,101)
-

(586,053)
52,730


Page 21

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,393,101
-

Bank loans
238,433
191,440

Trade creditors
4,852,782
8,576,958

Amounts owed to Companies under common control
302,109
77,100

Corporation tax
51,773
44,017

Other taxation and social security
3,155
2,227

Obligations under hire purchase contracts
107,450
128,665

Other creditors
104,920
94,447

Accruals and deferred income
16,602
500

7,070,325
9,115,354


Bank overdrafts are secured by a fixed and floating charges over all  assets of the company.
 

2023
2022
£
£

Other taxation and social security

PAYE/NI control
3,155
2,227

3,155
2,227



17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
93,503
145,878

93,503
145,878




Page 22

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
238,433
191,440

Hire Purchase Loan
107,450
128,665


345,883
320,105


Amounts falling due 2-5 years

Bank loans
93,503
145,878


93,503
145,878


439,386
465,983


Hire Purchase loan is  secured on the underlying assets and carries interest at varying rate. This loan is repayable by monthly installments.
Bank loan comprises various loans from different lenders which are unsecured loans and repayable by monthly installments. Interest at varying rate is being charged on each loans i.e. different interest rate is applicable for each loan


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000 (2022 - 2,000) Ordinary shares of £1.00 each
2,000
2,000



20.


Reserves

Profit and loss account

Profit and loss account represents accumulated retained earnings and is a distributable reserve.

Page 23

 
Asha Expo & Co Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 July 2023

21.


Prior year adjustment

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. 


22.


Pension commitments

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.


23.


Commitments under operating leases

At 31 July 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
2,400
2,400

2,400
2,400


24.


Related party transactions

During the year, total dividends of £24,500 (2022: £55.594) were paid to the directors.
During the year, the directors of the company provided various advances to the company. Amount owed to the directors at year end was £80,867 (2022: £49,675) which is included in other creditors. These are unsecured interest free advances which are repayable on demand.
During the year, a company under common control provided advances totaling £225,009 (2022: £77,100). At balance sheet date, amount owed by the company was £302,109 (2022:£77,100). These advances are unsecured, interest free and repayable on demand. Also, during the year, the company invoiced £220,000 to a company under common control. This was fully paid during the year. 


25.


Controlling party

The company is controlled by S Thakur and A Thakur.

 
Page 24