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REGISTERED NUMBER: 01497069 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

FOR

NOVA OF LONDON LIMITED

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


NOVA OF LONDON LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: S S Chawla
A S Chawla
D S Chawla
R K Chawla





SECRETARY: R K Chawla





REGISTERED OFFICE: 191 - 193 Commercial Road
London
E1 2BT





REGISTERED NUMBER: 01497069 (England and Wales)





AUDITORS: Xeinadin Audit Ltd
Statutory Auditors
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS
The results for the year and financial position of the company are as shown in the annexed financial statements.

The company's turnover decreased by 13.85% from £41,365,627 to £35,634,528. The company's gross profit margin decreased to 10.85% this year versus 15.92% last year. The gross profit margin decrease was due to the increase in purchase costs whilst being in a challenging current economic climate. The market conditions are expected to continue to be very competitive but the directors are optimistic that the company will be able to maintain its current performance with regard to turnover and possibly improve upon it in 2024. However, the directors do expect the gross profit margins to come under pressure again next year.

The directors are continuously monitoring the potential risks and uncertainty to the business in order to take the necessary mitigating steps to maintain the company's competitive edge.

PRINCIPAL RISKS AND UNCERTAINTIES
There are number of risks and uncertainties which could impact the performance of the company. The company
operates robust risk management processes which identify risks and uncertainties and evaluates mitigation
opportunities and solutions.

The management follow a continuous review of the performance of the company through monthly senior
management meetings. Action plans are developed and reviewed on an ongoing basis. The key risks are
principally the competitiveness of the UK market. Sales opportunities are continually evaluated to
the current market and economic climate


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

SECTION 172(1) STATEMENT
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

In doing this, section 172 requires a director to have regards, amongst other matters, to the:

- likely consequences of any decisions in the long term

- interests of the company's employees

- need to foster the company's business relationships with suppliers, customers and others

- impact of the company's operations on the community and environment

- desirability of the company maintaining a reputation for high standards of business conduct; and

- need to act fairly as between members of the company.

The directors confirm that in discharging their duties under section 172, they have had regard to the factors set out above. The company delegates authority for day to day management to key personnel who are responsible for setting, approving and overseeing the execution of the business strategy and related policies.

The company delegates to key management to review the Company's financial and operational performance, risk and compliance, and health and safety matters.

Customer service is a key area of focus for the company and the company is committed to maintaining and improving its online customer satisfaction survey rating. Customer satisfaction is maintained through training and development of the company's employees, offering a comprehensive range of stock, and a hassle free purchase experience.

Managing good relationships with suppliers is key to facilitating the offering of a wide range of high quality stock. The company engages with its suppliers to ensure that they are consulted and informed.

The company also has regard to the local community in all of its activities and acknowledges its role as a major employer in the local area.

KEY PERFORMANCE INDICATORS
The management team analyse various key performance indicators as part of their overall strategic review but
have identified the following as being particularly important.

Sales performance versus main competitors, sales versus budget and prior year and quality statistics.

ON BEHALF OF THE BOARD:





S S Chawla - Director


19 September 2024

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of Import, Export and Wholesale of ladies clothing.

DIVIDENDS
The directors have recommended interim dividends totalling £8,000 per share. No final dividend is proposed.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

S S Chawla
A S Chawla
D S Chawla
R K Chawla


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023

FINANCIAL INSTRUMENTS
Treasury operations and financial instruments

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities.

The company's principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company's activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the company's operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with company's treasury policy, derivative instruments are not entered into for speculative purposes.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

The company is exposed to the risk of claw back on finance commissions, if the customer fails the necessary standards set out in the terms and conditions of the finance companies. The risk is limited to the value of the commission received.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Price risk

The company is exposed to price risk as a result of its operations in a competitive market. The company monitors this using Key Performance indicators (KPIs) and acts accordingly.

Disabled persons

It is the policy of the company to give full and fair consideration to applications for employment from disabled persons, to continue wherever possible the employment of members of staff who may become disabled and to ensure that suitable training, career development and promotion are offered to such persons.

Employee involvement

The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

STREAMLINED ENERGY AND CARBON REPORTING
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

AUDITORS
The auditors, Xeinadin Audit Ltd, is deemed to be re-appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





S S Chawla - Director


19 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NOVA OF LONDON LIMITED

Opinion
We have audited the financial statements of Nova of London Limited (the 'company') for the year ended 30 June 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 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 qualified 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 except for the counting of physical inventories at the 30 June 2023. A Stock count did not take place and thus we were unable to observe the counting of physical inventories. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 30 June 2023 which are included in the balance sheet at £3,367,722. Consequently we were unable to determine whether any adjustment to this amount was necessary.

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
NOVA OF LONDON 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 Statement of Directors' Responsibilities set out on page six, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulation..
- Reviewing minutes of meetings of those charged with governance.
- Reviewing internal audit reports.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Reviewing licensing laws and ensuring compliance.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NOVA OF LONDON LIMITED


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.




Barry Leibovitch (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Ltd
Statutory Auditors
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH

19 September 2024

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   

TURNOVER 4 35,634,528 41,365,627

Cost of sales 31,766,995 34,782,232
GROSS PROFIT 3,867,533 6,583,395

Administrative expenses 4,126,284 3,821,930
(258,751 ) 2,761,465

Other operating income 298,407 317,940
OPERATING PROFIT 7 39,656 3,079,405

Interest receivable and similar income 482,494 348,610
522,150 3,428,015

Interest payable and similar expenses 9 3,116 1,928
PROFIT BEFORE TAXATION 519,034 3,426,087

Tax on profit 10 130,737 673,856
PROFIT FOR THE FINANCIAL YEAR 388,297 2,752,231

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 388,297 2,752,231


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

388,297

2,752,231

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 13 282,468 368,249

CURRENT ASSETS
Stocks 14 3,367,722 3,670,722
Debtors 15 27,038,334 31,600,633
Investments 16 221,000 221,000
Cash at bank and in hand 6,481,160 7,015,638
37,108,216 42,507,993
CREDITORS
Amounts falling due within one year 17 6,617,394 11,681,644
NET CURRENT ASSETS 30,490,822 30,826,349
TOTAL ASSETS LESS CURRENT
LIABILITIES

30,773,290

31,194,598

PROVISIONS FOR LIABILITIES 20 22,251 31,856
NET ASSETS 30,751,039 31,162,742

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 22 30,750,939 31,162,642
SHAREHOLDERS' FUNDS 30,751,039 31,162,742

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





S S Chawla - Director


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 100 29,210,411 29,210,511

Changes in equity
Dividends - (800,000 ) (800,000 )
Total comprehensive income - 2,752,231 2,752,231
Balance at 30 June 2022 100 31,162,642 31,162,742

Changes in equity
Dividends - (800,000 ) (800,000 )
Total comprehensive income - 388,297 388,297
Balance at 30 June 2023 100 30,750,939 30,751,039

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 204,744 875,745
Interest paid (3,116 ) (1,928 )
Tax paid (1,213,289 ) (460,941 )
Net cash from operating activities (1,011,661 ) 412,876

Cash flows from investing activities
Purchase of tangible fixed assets (23,042 ) (168,967 )
Purchase of fixed asset investments - (2,050,223 )
Sale of tangible fixed assets - 12,000
Interest received 482,494 348,610
Net cash from investing activities 459,452 (1,858,580 )

Cash flows from financing activities
New loans in year 817,731 -
Loan repayments in year - (110,890 )
Equity dividends paid (800,000 ) (800,000 )
Net cash from financing activities 17,731 (910,890 )

Decrease in cash and cash equivalents (534,478 ) (2,356,594 )
Cash and cash equivalents at beginning of
year

2

7,015,456

9,372,050

Cash and cash equivalents at end of year 2 6,480,978 7,015,456

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 519,034 3,426,087
Depreciation charges 108,823 102,857
Profit on disposal of fixed assets - (9,853 )
Finance costs 3,116 1,928
Finance income (482,494 ) (348,610 )
148,479 3,172,409
Decrease/(increase) in stocks 303,000 (148,026 )
Decrease/(increase) in trade and other debtors 5,215,534 (7,183,993 )
(Decrease)/increase in trade and other creditors (5,462,269 ) 5,035,355
Cash generated from operations 204,744 875,745

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 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 6,481,160 7,015,638
Bank overdrafts (182 ) (182 )
6,480,978 7,015,456
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 7,015,638 9,372,232
Bank overdrafts (182 ) (182 )
7,015,456 9,372,050


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank and in hand 7,015,638 (534,478 ) 6,481,160
Bank overdrafts (182 ) - (182 )
7,015,456 (534,478 ) 6,480,978

Liquid resources
Current asset investments 221,000 - 221,000
221,000 - 221,000
Total 7,236,456 (534,478 ) 6,701,978

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1. STATUTORY INFORMATION

Nova of London Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. 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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for the wholesale of ladies garments in the normal course of business. excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over 10 years
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial instruments are recognised in the company's financial statements 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

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

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

3. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
UK Sales 34,192,204 39,040,517
EU Sales 540,972 1,123,839
Non EU Sales 901,352 1,201,271
35,634,528 41,365,627

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,474,937 1,589,462
Social security costs 134,720 125,866
Other pension costs 25,396 25,492
1,635,053 1,740,820

The average number of employees during the year was as follows:
2023 2022

Selling and distribution 33 36
Administration 32 22
65 58

6. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 119,600 119,600
Directors' pension contributions to money purchase schemes 2,839 2,847

The total benefits in kind received by the directors during the year was £42,989 (2022: £25,839).

7. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 108,823 102,857
Profit on disposal of fixed assets - (9,853 )
Auditors' remuneration 8,000 8,000
Foreign exchange differences (291,745 ) (299,555 )
Operating lease rentals - land & buildings 524,000 524,000

8. EXCEPTIONAL ITEMS
2023 2022
£    £   
Bad debts (488,583 ) (105,356 )

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 3,116 -
Bank loan interest - 1,928
3,116 1,928

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 123,976 654,563
Corporation tax interest 16,366 5,318
Total current tax 140,342 659,881

Deferred tax (9,605 ) 13,975
Tax on profit 130,737 673,856

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 519,034 3,426,087
Profit multiplied by the standard rate of corporation tax in the UK of
20.500% (2022 - 19%)

106,402

650,957

Effects of:
Expenses not deductible for tax purposes 5,808 4,032
Depreciation in excess of capital allowance 11,766 1,446
Disallowable expenses - (1,872 )


Deferred tax (9,605 ) 13,975
Interest 16,366 5,318
Total tax charge 130,737 673,856

11. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 800,000 800,000

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

12. FINANCIAL INSTRUMENTS


2023 2022
£    £   

Carrying amount of financial assets
Financial assets measured at cost 23,856,061 30,615,815
========== =========
Carrying amount of financial liabilities
Financial liabilities measured at cost 2,933,055 8,855,202
========== =========


Financial assets that are debt instruments measured at cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at cost comprise trade creditors, amount owed to group undertakings, other creditors and finance lease obligations.

13. TANGIBLE FIXED ASSETS
Improvements
Short to Plant and
leasehold property machinery
£    £    £   
COST
At 1 July 2022 703,020 220,634 18,500
Additions - - -
Reclassification/transfer - - -
At 30 June 2023 703,020 220,634 18,500
DEPRECIATION
At 1 July 2022 688,987 186,645 16,744
Charge for year 4,676 21,622 440
Reclassification/transfer - - -
At 30 June 2023 693,663 208,267 17,184
NET BOOK VALUE
At 30 June 2023 9,357 12,367 1,316
At 30 June 2022 14,033 33,989 1,756

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

13. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 July 2022 478,791 221,581 - 1,642,526
Additions 6,226 - 16,816 23,042
Reclassification/transfer (124,185 ) - 124,185 -
At 30 June 2023 360,832 221,581 141,001 1,665,568
DEPRECIATION
At 1 July 2022 282,674 99,227 - 1,274,277
Charge for year 25,623 30,589 25,873 108,823
Reclassification/transfer (91,881 ) - 91,881 -
At 30 June 2023 216,416 129,816 117,754 1,383,100
NET BOOK VALUE
At 30 June 2023 144,416 91,765 23,247 282,468
At 30 June 2022 196,117 122,354 - 368,249

14. STOCKS
2023 2022
£    £   
Finished goods and goods for
resale 3,367,722 3,670,722

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 7,002,424 16,211,445
Amounts owed by group undertakings 10,829,605 11,267,837
Other debtors 6,024,032 3,136,533
Tax 1,523,280 431,813
Prepayments and accrued income 1,658,993 553,005
27,038,334 31,600,633

16. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Unlisted investments 221,000 221,000

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) 182 182
Trade creditors 2,420,495 8,586,968
Amounts owed to group undertakings 379,499 -
Tax 2,068,185 2,049,665
Social security and other taxes 24,819 22,599
VAT 510,550 506,883
Other creditors 133,061 268,234
Accrued expenses 1,080,603 247,113
6,617,394 11,681,644

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 182 182

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 182 182

The bank borrowings are secured by a charge on the properties owned by the associated company and a cross guarantee. The factoring account is secured on trade debtors..

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 22,251 31,856

Deferred
tax
£   
Balance at 1 July 2022 31,856
Provided during year (9,605 )
Movement
Balance at 30 June 2023 22,251

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary £1 100 100

22. RESERVES
Retained
earnings
£   

At 1 July 2022 31,162,642
Profit for the year 388,297
Dividends (800,000 )
At 30 June 2023 30,750,939

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 June 2023 and 30 June 2022:

2023 2022
£    £   
D S Chawla
Balance outstanding at start of year 1,547,221 935,000
Amounts advanced 6,627,102 1,502,221
Amounts repaid (3,840,000 ) (890,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 4,334,323 1,547,221

A S Chawla
Balance outstanding at start of year 102,590 100,000
Amounts advanced 226,892 77,590
Amounts repaid (225,000 ) (75,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 104,482 102,590

Mr SS Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends.

Mr A S Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends.

Mr D S Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends.

Mrs R K Chawla has a beneficial interest in the company and £200,000 (2022: £200,000) was received by way of dividends.

NOVA OF LONDON LIMITED (REGISTERED NUMBER: 01497069)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

24. RELATED PARTY DISCLOSURES

Mr SS Chawla, Mr A S Chawla, Mr D S Chawla and Mrs R K Chawla have an interest in Silver Shadow Investments Limited, the company in which the fixed asset investments of £10,674,042 (2022: £10,544,169) and current asset investments of £nil (2022: £nil) were made. The loans are interest bearing at a commercial rate and are repayable within ten years from the balance sheet date. Interest receivable in the year was £427,370 (2022: £318,799).

The company has guaranteed the bank borrowings of Silver Shadow Investments Limited and at the balance sheet date the amount due under the guarantee was £422,703 (2022: £315,176).

The company leases five properties from Silver Shadow Investments Limited at an annual combined rental of £524,000 (2022: £524,000) per annum.

The company has made a loan to Blue Vanilla Clothing Ltd, of £1,463,680.43 (2022: £1,463,680.43), and received a loan from Vanilla Retail of £379,499 (2022: £568,105 (loan to)). Companies in which Mr S S Chawla, Mrs R K Chawla, Mr D S Chawla and Mr A S Chawla are also directors. Sales to Blue Vanilla Clothing Ltd were £1,223,825 (2022: £1,849,429) and Vanilla Retail Ltd were £14,457,313 in 2023 (2022: £9,907,089.96).

During the year the company paid the dividend of £800,000 to the directors and they received the following dividend payments:

Mr S S Chawla £200,000
Mr A S Chawla £200,000
Mr D S Chawla £200,000
Mr R K Chawla £200,000

During the year, a total of key management personnel compensation of £439,324 was paid. This is broken down as follows:



Directors 119,600
Sales 292,779
Accounts 26,945


439,324



25. CONTROL

During the year, the company was controlled by the directors.