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REGISTERED NUMBER: 04791222 (England and Wales)










Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2023

for

Pasab Limited

Pasab Limited (Registered number: 04791222)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Strategic Report 1

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


Pasab Limited (Registered number: 04791222)

Strategic Report
for the Year Ended 31 December 2023

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

Principal objectives and strategies
The principal activity of the company during the year continued to be that of dispensing chemists. The directors report that the company is currently working with a key educational partner to grow training and development through the business. The directors are therefore confident of the company's future prospects.

Pharmacy is the third pillar for the NHS and the new service income opportunity for the company created additional opportunity to support communities with their wellbeing. New services like Hypertension, Community Pharmacy Consulting Service and Covid Hubs are going to help support the future of the company.

Development and performance
The directors report that during the year under review, the company generated turnover of £7,426,859 and a gross margin of 30.93% (37.90% in 2022). However, the company's result before taxation is a profit of £432,729 (loss of £312,089 in 2022). At the year end the company had shareholders funds of £3,337,692 and distributable reserves of £3,253,691.

Principal risks and uncertainties
Increasing competitive pressure in the UK market is a continuing risk for the company, however this risk is managed by the directors by growing new revenue streams and providing new value-added services and maintaining strong customer relationships and consistently developing innovative, customer focused solutions. The directors have also embarked on implementing a hub and spoke model to further reduce dispensing costs to further mitigate risk.

The company operates in a regulated markets and is subject to significant governmental regulation. This relates to virtually every aspect of our business, from labels and dispensing process to reimbursement for NHS prescriptions. Like every business, our management team is regularly monitoring our risk profile and provides clear guidelines and assurances that all social, legal and health and safety responsibilities are adhered to.

Competitive risk
Government reduction in pharmacy reimbursement and remuneration have served to increase competition. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with key suppliers.

Operational risk
The main operational risk relating to the company's operations of the dispensing chemist. The company holds and buys its stock based on confirmed contracts and directors consider the impact on operations will be limited on the company's operational risks.

Credit risk
Credit risk is the risk of financial loss of the company if a customer or a counterparty to a financial instrument fails to meet its obligation and arises principally from the Company's receivables from customers. The company has no credit risk because all of its external trade receivables are guaranteed to be paid by the National Health Service on their due date.

Liquidity Risk
The company funds its operations through a mix of retained earnings, borrowings and lending that is designed to ensure company has sufficient funds for its day to day operations and other activities and manages liquidity risk by maintaining adequate reserves, banking facilities and by monitoring cash flows.

Market Risk
optimizing risk is the changes in market prices, such as foreign exchange rates and interest rates that affect the company's income or the value of the holding of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The company is not exposed to currency risk, as all revenue is derived from United Kingdom, and all expenditure is incurred within the United Kingdom.




Pasab Limited (Registered number: 04791222)

Strategic Report
for the Year Ended 31 December 2023



Regulations and government
The company operates in highly regulated markets and changes to which would have a negative impact on business performance. The Department of Health could take further action and again reduce drug tariff reimbursement levels, we may be non-compliant with existing regulations and the regulations themselves may change, or further changes to the control of entry regulations could adversely impact the company's profitability.

Other Matters
During the year, company sold Semilong on 26th Sept 2023 and Leicester pharmacy on 31st Oct 2023.


Key performance indicators
Key performance indicators are used to measure and evaluate company performance against targets and monitor various activities throughout the company. The main key performance indicators employed in the company are:

Particulars 2023 2022 2021
Turnover £7,426,859 £7,762,315 £7,966,145
Gross Profit/ (loss) £2,296,810 £2,942,686 £2,786,184
Net Profit/(loss) before tax £432,729 £(312,089) £(63,553)

The board monitor these on a monthly basis against budgets.

ON BEHALF OF THE BOARD:





A Parikh - Director


6 September 2024

Pasab Limited (Registered number: 04791222)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
The directors have not identified any material events post balance sheet date which would require adjustments to the financial statements, and are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success. The company continues to achieve growth by seeking and acquiring more pharmacies and rationalize loss making branches to expand business and improve gross margins, maximise profitability by realising efficiencies within the business.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs S K Jhooty
M S Jhooty
A Parikh

GOING CONCERN
The directors have reviewed and factored potential delays and reassess cash flow forecasts and budgets, which show that the company would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments, research & development and financial instruments

DIRECTORS' RESPONSIBILITIES STATEMENT
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act (2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Pasab Limited (Registered number: 04791222)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, SKS Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Parikh - Director


6 September 2024

Report of the Independent Auditors to the Members of
Pasab Limited

Opinion
We have audited the financial statements of Pasab Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Pasab Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 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.

Report of the Independent Auditors to the Members of
Pasab Limited


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 a Report of the Auditors 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.

Discussions were held with, and enquiries made of, management and those charged with goverence with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.During the engagement term briefing, the outcomes of these discussions and enquiries were shared with the term, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:
-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

-It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedure undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of inquiries of management and those charged with goverence as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims: inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the normal ledger, including journal entries; reviewing transactions around the end of the reporting period, and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative to fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatement may not be detected, even though the audit has been planned and performed in accordance with ISAs(UK)

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 Report of the Auditors.

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 a Report of the Auditors 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.




Moganarden Pillay Chelvanaigum (Senior Statutory Auditor)
for and on behalf of SKS Audit LLP
3 Sheen Road
Richmond Upon Thames
TW9 1AD

11 September 2024

Pasab Limited (Registered number: 04791222)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 2 7,426,859 7,762,315

Cost of sales (5,130,049 ) (4,819,629 )
GROSS PROFIT 2,296,810 2,942,686

Administrative expenses (2,787,242 ) (3,821,705 )
(490,432 ) (879,019 )

Other operating income 1,159,175 683,949
OPERATING PROFIT/(LOSS) 4 668,743 (195,070 )


Interest payable and similar expenses 6 (236,014 ) (117,019 )
PROFIT/(LOSS) BEFORE TAXATION 432,729 (312,089 )

Tax on profit/(loss) 7 (2,420 ) 29,395
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

430,309

(282,694

)

Pasab Limited (Registered number: 04791222)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 430,309 (282,694 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

430,309

(282,694

)

Pasab Limited (Registered number: 04791222)

Balance Sheet
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 8 458,963 681,689
Tangible assets 9 3,259,290 3,358,296
3,718,253 4,039,985

CURRENT ASSETS
Stocks 10 310,941 417,590
Debtors 11 4,277,256 4,365,359
Cash at bank and in hand 21,195 20,765
4,609,392 4,803,714
CREDITORS
Amounts falling due within one year 12 (2,531,984 ) (2,879,678 )
NET CURRENT ASSETS 2,077,408 1,924,036
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,795,661

5,964,021

CREDITORS
Amounts falling due after more than one year 13 (1,983,271 ) (2,584,359 )

PROVISIONS FOR LIABILITIES 16 (474,698 ) (472,279 )
NET ASSETS 3,337,692 2,907,383

CAPITAL AND RESERVES
Called up share capital 17 7 7
Share premium 18 83,994 83,994
Retained earnings 18 3,253,691 2,823,382
SHAREHOLDERS' FUNDS 3,337,692 2,907,383

The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2024 and were signed on its behalf by:





A Parikh - Director


Pasab Limited (Registered number: 04791222)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 7 3,106,076 83,994 3,190,077

Changes in equity
Total comprehensive income - (282,694 ) - (282,694 )
Balance at 31 December 2022 7 2,823,382 83,994 2,907,383

Changes in equity
Total comprehensive income - 430,309 - 430,309
Balance at 31 December 2023 7 3,253,691 83,994 3,337,692

Pasab Limited (Registered number: 04791222)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 107,685 (1,340,981 )
Interest paid (158,037 ) (117,019 )
Prior period item (77,977 ) -
Tax paid - (34,010 )
Net cash from operating activities (128,329 ) (1,492,010 )

Cash flows from investing activities
Purchase of tangible fixed assets (111,759 ) (35,695 )
Sale of intangible fixed assets 98,376 (11,931 )
Sale of tangible fixed assets 616,689 22,462
Net cash from investing activities 603,306 (25,164 )

Cash flows from financing activities
New loans in year - 2,200,000
Loan repayments in year (612,727 ) (273,347 )
Amount introduced by directors (1 ) 44,684
Amount withdrawn by directors (33,048 ) (1 )
Net cash from financing activities (645,776 ) 1,971,336

(Decrease)/increase in cash and cash equivalents (170,799 ) 454,162
Cash and cash equivalents at beginning of
year

2

(441,054

)

(895,216

)

Cash and cash equivalents at end of year 2 (611,853 ) (441,054 )

Pasab Limited (Registered number: 04791222)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit/(loss) for the financial year 430,309 (282,694 )
Depreciation charges 330,121 354,973
(Profit)/loss on disposal of fixed assets (611,697 ) 89,400
Finance costs 236,014 117,019
Taxation 2,420 (29,395 )
387,167 249,303
Decrease/(increase) in stocks 106,649 (96,915 )
Increase in trade and other debtors (352,761 ) (350,207 )
Decrease in trade and other creditors (33,370 ) (1,143,162 )
Cash generated from operations 107,685 (1,340,981 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 21,195 20,765
Bank overdrafts (633,048 ) (461,819 )
(611,853 ) (441,054 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 20,765 203,462
Bank overdrafts (461,819 ) (1,098,678 )
(441,054 ) (895,216 )


Pasab Limited (Registered number: 04791222)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 20,765 430 21,195
Bank overdrafts (461,819 ) (171,229 ) (633,048 )
(441,054 ) (170,799 ) (611,853 )
Debt
Debts falling due within 1 year (109,388 ) 25,380 (84,008 )
Debts falling due after 1 year (2,009,568 ) 587,348 (1,422,220 )
(2,118,956 ) 612,728 (1,506,228 )
Total (2,560,010 ) 441,929 (2,118,081 )

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

COMPANY INFORMATION
Pasab Limited's registered office is located at International House, 20 Hatherton Street, Walsall, West Midlands, WS4 2LA.

2.1 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 a mounts in these financial statements are rounded to the nearest £.

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

2.2 Going concern
In our capacity as directors, we are required to consider the company's going concern status on an ongoing basis and at the time we approve and sign off our financial statements, considering a period of no less than 12 months from the date of approval.

At 31 December 2023 the company had net current asset/( liabilities) of £2,077,408 (2022: £1,924,036) and net profit after tax of £430,309 (2022:loss of £282,692), however the financial statements have been prepared on a going concern basis.

In making this assessment, the directors have prepared forecasts for the company for the period to 31 December 2025. These forecasts have been based on the income expected to be generated from current government prescription pricing and anticipated changes thereon. In addition, and in light of the disclosures made in note 12 to the financial statements, the forecasts assume that the company will continue to operate within existing bank facilities and that bank loans will continue to be repaid in line their agreed terms.

As part of their going concern assessment, the directors have considered the forecasts carefully and also considered the ability of the company to raise additional funds (and consequentially reduce its debt profile) through the sale of existing branches, a process which is ongoing at the date these financial statements were approved.

The directors are therefore satisfied that they have made appropriate enquiries, considered all the available information and assessed the company's current and forecast trading situation in their going concern assessment. As a result, directors have at the time of signing the financial statements have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and accordingly have continued to adopt the going concern basis in preparing the financial statements.

2.3 Turnover
Turnover represents revenue recognised by the company in respect of goods and services supplied to retail markets , NHS prescriptions and services, private prescriptions and counter services during the year, exclusive of VAT and trade discounts.


Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
Revenue from sale of goods is recognized when the significant risk and rewards 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 cost incurred in respect of the transaction can be measured reliably.

2.4 Intangible fixed assets - goodwill
Intangible fixed assets are initially measured at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life. Where a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years.

The directors have determined the useful economic life of intangible fixed assets to be 20 years.

2.5 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:

Leasehold land and buildings 5% straight line method
Fixtures, fittings and equipment 10% straight line method
Motor vehicles 25% reducing balance method

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 .

2.6 Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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.

2.7 Stocks

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes material plus incidental costs of transport.

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.

2.8 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.

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.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies 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.

2.9 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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

2.10 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense .

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.

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

2.12 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.



2.13 Government Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

2.14 Trade & Other Debtors
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are
recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

2.15 Trade & Other Creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

2.16 Cash & 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.

2.17 Reporting period
The company's reporting period ends on 31st December 2023.

2.18 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.


Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
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.

Intangible fixed assets
The directors believe that the right for dispensing UK NHS prescriptions, represented by the purchased goodwill, has a continuing value. Such rights, conferred by the Department of Health, as contracts to dispense prescriptions, are not generally granted to new pharmacies in the same locality. Consequently. the directors consider that the value of purchased goodwill has a life of 20 years and is therefore amortised over that period.

2. TURNOVER

Turnover is wholly attributable to the company's principal activity of retail pharmacy and is wholly incurred within the United Kingdom.

3. EMPLOYEES AND DIRECTORS

Particular 2023 2022
Wages and salary £1,878,482 £2,067,040
Social security cost £96,967 £112,437
Other pension cost £17,136 £19,576
£1,957,491 £2,210,840


Directors' remuneration £108,000 £121,500


The average number of employees during the year was as follows:
2023 2022
Management, Administration & Branches 73 87



4. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 193,987 234,108
Depreciation - owned assets 210,541 199,756
(Profit)/loss on disposal of fixed assets (611,697 ) 89,400
Goodwill amortisation 124,350 155,217

5. EXCEPTIONAL ITEMS
2023 2022
£    £   
Prior Period items (77,977 ) -

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES

2023 2022
£    £   
Bank loan interest 158,037 117,019

158,037 117,019

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 2,420 (29,395 )
Tax on profit/(loss) 2,420 (29,395 )

UK corporation tax was charged at 19%) in 2022.

RECONCILIATION OF TOTAL TAX CHARGE/(CREDIT) INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit/(loss) before tax 432,729 (312,089 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

82,219

(59,297

)

Effects of:
Expenses not deductible for tax purposes (17,256 ) 41,759
Income not taxable for tax purposes (153,215 ) (14,040 )
Capital allowances in excess of depreciation (11,681 ) (17,158 )
Utilisation of tax losses 99,933 48,736
Deferred Tax Charge 2,420 (29,395 )

Total tax charge/(credit) 2,420 (29,395 )

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023 2,823,375
Disposals (954,963 )
At 31 December 2023 1,868,412
AMORTISATION
At 1 January 2023 2,141,686
Amortisation for year 124,350
Eliminated on disposal (856,587 )
At 31 December 2023 1,409,449
NET BOOK VALUE
At 31 December 2023 458,963
At 31 December 2022 681,689

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets / license acquired of dispensing chemist business to expand it operation.

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long and
property leasehold fittings
£    £    £   
COST
At 1 January 2023 3,633,741 394,761 1,632,977
Additions 22,000 - 89,722
Disposals - - (19,401 )
At 31 December 2023 3,655,741 394,761 1,703,298
DEPRECIATION
At 1 January 2023 804,547 280,385 1,277,564
Charge for year 78,581 16,433 92,669
Eliminated on disposal - - (14,409 )
Charge written back - - -
At 31 December 2023 883,128 296,818 1,355,824
NET BOOK VALUE
At 31 December 2023 2,772,613 97,943 347,474
At 31 December 2022 2,829,194 114,376 355,413

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 297,235 355,223 6,313,937
Additions - 37 111,759
Disposals - - (19,401 )
At 31 December 2023 297,235 355,260 6,406,295
DEPRECIATION
At 1 January 2023 255,429 337,716 2,955,641
Charge for year 10,451 12,407 210,541
Eliminated on disposal - - (14,409 )
Charge written back - (4,768 ) (4,768 )
At 31 December 2023 265,880 345,355 3,147,005
NET BOOK VALUE
At 31 December 2023 31,355 9,905 3,259,290
At 31 December 2022 41,806 17,507 3,358,296

10. STOCKS
2023 2022
£    £   
Stocks 310,941 417,590

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,224,386 1,272,586
Amounts owed by participating interests 2,554,245 2,364,287
Other debtors 105,244 544,360
VAT 26,234 -
Prepayments 140,472 184,126
Accrued Income 226,675 -
4,277,256 4,365,359

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 717,056 571,207
Trade creditors 1,452,668 1,871,869
Social security and other tax 82,383 36,245
VAT - 16,108
Other creditors 85,488 109,165
Directors' current accounts 108,397 141,445
Accruals and deferred income 72,252 119,899
Deferred government grants 13,740 13,740
2,531,984 2,879,678

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 14) 1,422,220 2,009,568
Accruals and deferred income 561,051 574,791
1,983,271 2,584,359

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 633,048 461,819
HSBC Loan 65310 ST 84,008 109,388
717,056 571,207

Amounts falling due between one and two years:
HSBC Loan 65310 LT 89,304 139,723

Amounts falling due between two and five years:
Bank loans - 2-5 years 296,765 458,112

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 1,036,151 1,411,733

The bank loans and overdrafts are secured by fixed and floating charges over all current and future assets of the company.

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 147,254 147,253
Between one and five years 498,961 513,988
In more than five years 770,590 795,590
1,416,805 1,456,831

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 474,698 472,279

Deferred
tax
£   
Balance at 1 January 2023 472,279
Provided during year 2,419
Balance at 31 December 2023 474,698

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
7 Ordinary Shares 1 7 7

18. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 2,823,382 83,994 2,907,376
Profit for the year 430,309 430,309
At 31 December 2023 3,253,691 83,994 3,337,685

19. PENSION COMMITMENTS

Defined Contribution Schemes

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.

During the year the company contributed £17,265 (2022: £19,576).

Pasab Limited (Registered number: 04791222)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. RELATED PARTY DISCLOSURES

Other related parties

Any directors or senior employees who have authority and responsibility for controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £108,000 (2022 - £121,500).

The directors are also directors of a number of related companies that Pasab Limited has traded with. During the year, no rent was charged (2022 - £41,000) from related parties and charged management fees of £700,000 (2022 - £500,000) to these related parties for head office expenses. During the year management charge of £185,000 (2022 - NIL) was levied to related party and is receivable as at 31st December 2023. At 31 December 2023, the amount owed by/to company £2,554,245 (2022 - £2,364,286) from these related parties.

Included within other creditors at 31 December 2023 is a directors’ current account balance of £108,397 (2022 - £141,445 ) owed by the company to Mrs S K Jhooty, Mr M S Jhooty and Mr A Parikh.

21. POST BALANCE SHEET EVENTS

The directors have not identified any material events post balance sheet date which would require adjustments to the financial statements, and are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success.

22. ULTIMATE CONTROLLING PARTY

The controlling party is M S Jhooty.

Mr M S Jhooty, director, is the ultimate controlling party by virtue of his majority interest in the company's issued share capital.