Registered number
03548944
M Sadiq Furniture Ltd
Filleted Accounts
31 December 2023
M Sadiq Furniture Ltd
Registered number: 03548944
Balance Sheet
as at 31 December 2023
Notes 31/12/23 30/6/23
£ £
Fixed assets
Tangible assets 3 2,127,958 2,469,353
Current assets
Stocks 709,400 769,400
Debtors 4 424,528 440,010
Cash at bank and in hand 411,280 319,106
1,545,208 1,528,516
Creditors: amounts falling due within one year 5 (1,627,566) (1,835,701)
Net current liabilities (82,358) (307,185)
Total assets less current liabilities 2,045,600 2,162,168
Creditors: amounts falling due after more than one year 6 (1,335,043) (1,390,051)
Provisions for liabilities (54,567) (63,513)
Net assets 655,990 708,604
Capital and reserves
Called up share capital 1,000 1,000
Profit and loss account 654,990 707,604
Shareholders' funds 655,990 708,604
The director is satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
M P J Sadiq
Director
Approved by the board on 9 September 2024
M Sadiq Furniture Ltd
Notes to the Accounts
for the period from 1 July 2023 to 31 December 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant & machinery 20% reducing balance
Motor vehicles 25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 31/12/23 30/6/23
Number Number
Average number of persons employed by the company 51 54
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 July 2023 2,172,440 530,330 423,692 3,126,462
Additions - 9,587 23,500 33,087
Disposals (300,000) - (94,106) (394,106)
At 31 December 2023 1,872,440 539,917 353,086 2,765,443
Depreciation
At 1 July 2023 37,367 358,263 261,479 657,109
Charge for the period 5,123 17,727 21,305 44,155
On disposals - - (63,779) (63,779)
At 31 December 2023 42,490 375,990 219,005 637,485
Net book value
At 31 December 2023 1,829,950 163,927 134,081 2,127,958
At 30 June 2023 2,135,073 172,067 162,213 2,469,353
4 Debtors 31/12/23 30/6/23
£ £
Trade debtors 288,497 352,725
Other debtors 136,031 87,285
424,528 440,010
5 Creditors: amounts falling due within one year 31/12/23 30/6/23
£ £
Bank loans and overdrafts 77,500 77,500
Obligations under finance lease and hire purchase contracts 48,841 136,075
Trade creditors 313,755 398,965
Director's loan 865,174 929,819
Taxation and social security costs 110,526 58,246
Other creditors 211,770 235,096
1,627,566 1,835,701
6 Creditors: amounts falling due after one year 31/12/23 30/6/23
£ £
Bank loans 1,216,974 1,275,789
Obligations under finance lease and hire purchase contracts 118,069 114,262
1,335,043 1,390,051
7 Controlling party
The company's controlling party was the director who owned 51% of the issued share capital (his wife, Mrs T L Sadiq owned the other 49%).
8 Other information
M Sadiq Furniture Ltd is a private company limited by shares and incorporated in England. Its registered office is:
23 Cottingham Way
Thrapston
Kettering
Northants
NN14 4PL
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