Company registration number 12459906 (England and Wales)
MADHURIMA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MADHURIMA LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
MADHURIMA LIMITED
COMPANY INFORMATION
Directors
V J M A Flores
J Elliott
P Sekhsaria
C Molyneux
S Kurdikar
Company number
12459906
Registered office
2nd Floor
110 Wigmore Street
London
W1U 3RW
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
MADHURIMA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The principal revenue of the company during the year ended 31 March 2024 continued to be that of trading in commodities.
The company’s turnover increased from £12.6 million in the year ended 31 March 2023 to £18.9 million for the year under review. The gross profit increased to £0.5 million from £0.2 million. The company's loss before tax increased from £1.1 million to £1.6 million largely as a result of increase in employment costs. The company increased its number of employees to help expand its focus on distribution and healthcare businesses. The company expects to make its first purchase of a profitable business by the end of 2024.
The company’s total assets increased from £9.6 million to £14.8 million. Net assets increased from £9.5 million to £14.2 million.
Principal risks and uncertainties
Market and foreign currency risk
The company manages market and price risk using its vast experience of the trade. The company has a vast and detailed knowledge of the cementitious and agricultural commodity markets. The company reduces the market risk by only operating in back-to-back trades with clients that is has a long and reliable relationship with.
Foreign currency risk is the risk that foreign exchange rates will affect the company's income. The company is exposed to currency risk versus the US Dollar given its operations are mostly outside the United Kingdom. However, significant portions of income and expenses are payable/receivable in US Dollars, thereby providing a natural hedge.
Credit risk
Credit risk is the risk of financial loss to the company if a counterparty fails to meet its contractual obligations. New credit customers are only accepted after they have gone through thorough credit checks. In most circumstances, payment is requested in advance for all contracts.
Key performance indicators
Financial KPIs
Despite volatility in the markets, the company has increased its GP margin in comparison to the previous financial year from 1.24% to 2.62%. An increase in trade as the company is establishing itself has led to an inflow of cash flows from operating activities of £693k compared to outflows in 2023 of £6.006m.
Current ratio is 19.9 (2023: 84) satisfying the Board that the company has adequate liquid assets to meet its short term financial obligations.
Future developments
The Board recently appointed Benjamin Gudgeon as Head of Health Services and he has undertaken a full review of the healthcare market with a view to purchase our first care home by the end of financial year 2025. A new subsidiary Oak Lane Health Limited has been set up to incorporate all our health businesses.
The company has also set up another subsidiary called TrueField Foods Limited, to incorporate our food distribution businesses.
A lot of time and effort has been focused on understanding the care home and food distribution businesses and the company is now in a strong position to buy profitable companies that fit our financial model and valuation
MADHURIMA LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
C Molyneux
Director
30 September 2024
MADHURIMA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of trading in commodities.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
V J M A Flores
J Elliott
P Sekhsaria
C Molyneux
C Fernholz
(Resigned 31 October 2023)
S Kurdikar
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going Concern
For further information on going concern, refer to Note 1.2.
MADHURIMA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
C Molyneux
Director
30 September 2024
MADHURIMA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MADHURIMA LIMITED
- 5 -
Opinion
We have audited the financial statements of Madhurima Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 March 2024 and of its loss 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MADHURIMA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MADHURIMA LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
The extent to which the audit was considered capable of detecting irregularities including fraud
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
The engagement lead ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation, employment law, data protection, anti-bribery and health and safety.
MADHURIMA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MADHURIMA LIMITED (CONTINUED)
- 7 -
Audit response to risks Identified
Fraud due to management override
To address the risk of fraud through management bias and override of controls, we:
Irregularities and non-compliance with laws and regulations
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:
Agreeing financial statements disclosures to underlying supporting documentation.
Reviewing minutes of meetings of those charged with governance.
Enquiring of management as to actual and potential litigation claims.
Reviewing correspondence with HMRC.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of Madhurima Limited.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Saskia Harrison
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
30 September 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
MADHURIMA LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
18,919,983
12,571,011
Cost of sales
(18,424,219)
(12,415,421)
Gross profit
495,764
155,590
Administrative expenses
(2,328,061)
(1,269,893)
Operating loss
3
(1,832,297)
(1,114,303)
Interest receivable and similar income
5
194,610
17,776
Interest payable and similar expenses
(13,009)
Loss before taxation
(1,637,687)
(1,109,536)
Tax on loss
7
Loss for the financial year
(1,637,687)
(1,109,536)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MADHURIMA LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
195,517
14,232
Current assets
Debtors
9
3,160,886
5,019,609
Cash at bank and in hand
11,614,892
4,596,527
14,775,778
9,616,136
Creditors: amounts falling due within one year
10
(743,362)
(114,473)
Net current assets
14,032,416
9,501,663
Net assets
14,227,933
9,515,895
Capital and reserves
Called up share capital
12
18,005,655
11,655,930
Profit and loss reserves
(3,777,722)
(2,140,035)
Total equity
14,227,933
9,515,895
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
C Molyneux
Director
Company registration number 12459906 (England and Wales)
MADHURIMA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
7,500,000
(1,030,499)
6,469,501
Year ended 31 March 2023:
Loss and total comprehensive income
-
(1,109,536)
(1,109,536)
Issue of share capital
12
4,155,930
-
4,155,930
Balance at 31 March 2023
11,655,930
(2,140,035)
9,515,895
Year ended 31 March 2024:
Loss and total comprehensive income
-
(1,637,687)
(1,637,687)
Issue of share capital
12
6,349,725
-
6,349,725
Balance at 31 March 2024
18,005,655
(3,777,722)
14,227,933
MADHURIMA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
17
693,667
(6,060,784)
Interest paid
(13,009)
Net cash inflow/(outflow) from operating activities
693,667
(6,073,793)
Investing activities
Purchase of tangible fixed assets
(234,637)
(4,409)
Repayment/(issuance) of loans
15,000
(15,000)
Interest received
194,610
17,776
Net cash used in investing activities
(25,027)
(1,633)
Financing activities
Proceeds from issue of shares
6,349,725
4,155,930
Repayment of borrowings
(1,176,190)
Net cash generated from financing activities
6,349,725
2,979,740
Net increase/(decrease) in cash and cash equivalents
7,018,365
(3,095,686)
Cash and cash equivalents at beginning of year
4,596,527
7,692,213
Cash and cash equivalents at end of year
11,614,892
4,596,527
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Madhurima Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 110 Wigmore Street, London, W1U 3RW.
1.1
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 amounts 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.
1.2
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for trading of cement, agricultural and soft commodities. Turnover is shown net of VAT and trade discounts.
Revenue is recognised when goods are despatched, at which point risk and rewards are transferred to the end customer.
1.4
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 improvements
Straight line over 5 years
Fixtures and fittings
25% reducing balance basis
Computers
25% reducing balance basis
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.9
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 fixed assets.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
8,070
-
Europe (Excluding UK)
900,130
5,635,070
Asia
17,196,225
6,896,092
Africa
543,956
39,849
North America
271,602
-
18,919,983
12,571,011
3
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Exchange losses
213,057
145,852
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
10,000
Depreciation of owned tangible fixed assets
53,352
3,817
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
8
3
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
749,815
421,794
Social security costs
86,955
50,989
Pension costs
141,542
3,767
978,312
476,550
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,572
17,776
Other interest income
193,038
Total income
194,610
17,776
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
497,069
335,075
Social security costs
63,176
44,127
Company pension contributions to defined contribution schemes
99,900
-
596,969
335,075
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
169,167
165,000
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
7
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(1,637,687)
(1,109,536)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(409,422)
(210,812)
Unutilised tax losses carried forward
409,422
210,812
Taxation charge for the year
-
-
8
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
12,268
8,614
20,882
Additions
177,314
49,962
7,361
234,637
At 31 March 2024
177,314
62,230
15,975
255,519
Depreciation and impairment
At 1 April 2023
4,816
1,834
6,650
Depreciation charged in the year
35,463
14,354
3,535
53,352
At 31 March 2024
35,463
19,170
5,369
60,002
Carrying amount
At 31 March 2024
141,851
43,060
10,606
195,517
At 31 March 2023
7,452
6,780
14,232
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,990,231
3,725,438
Amounts owed by undertakings in which the company has a participating interest
81,446
Other debtors
969,115
1,291,011
Prepayments and accrued income
120,094
3,160
3,160,886
5,019,609
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
546,201
54,376
Taxation and social security
29,133
24,842
Other creditors
143,028
23,875
Accruals and deferred income
25,000
11,380
743,362
114,473
11
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
141,542
3,767
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.
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
18,005,655
11,655,930
18,005,655
11,655,930
On 07 September 2023 and 13 February 2024, 2,385,875 and 3,963,850 Ordinary shares respectively were issued at par.
13
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
135,943
22,765
Between two and five years
409,781
11,648
545,724
34,413
14
Events after the reporting date
Post year end, Madhurima Limited incorporated the following fully owned subsidiaries:
Truefield Foods Limited - incorporated on 7 August 2024
Oak Lane Health Limited - Incorporated on 1 June 2024
MADHURIMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
15
Related party transactions
Including within other debtors is an amount of £Nil (2023: £15,000) owed by a director. This amount was provided unsecured and is effectively repayable on demand.
Included within other debtors is an amount of £81,446 (2023: £Nil) due from India Youth Fund, a charity in which the directors are trustees.
Included in consultancy fees is the sum of £41,348 (2023: £11,924) paid to directors of the company.
During the year amounts of £6,667 (2023: £82,500) were paid to Spawn-Beget Limited a company in which one of the directors has material interest. No amounts were outstanding as at the year end (2023: Nil).
During the year amounts of £Nil (2023: £20,929) were paid to Somdatt Consultants Ltd a company in which one of the directors has material interest. No amounts were outstanding as at the year end (2023: Nil).
16
Ultimate controlling party
The ultimate parent and controlling party is Madhurima International Private Limited, a company registered in India and whose address is 102 Maker Chamber -3 12th Floor, Nariman Point, Mumbai, Maharashtra, 400021.
17
Cash generated from/(absorbed by) operations
2024
2023
£
£
Loss for the year after tax
(1,637,687)
(1,109,536)
Adjustments for:
Finance costs
13,009
Investment income
(194,610)
(17,776)
Depreciation and impairment of tangible fixed assets
53,352
3,817
Movements in working capital:
Decrease/(increase) in debtors
1,843,723
(4,991,957)
Increase in creditors
628,889
41,659
Cash generated from/(absorbed by) operations
693,667
(6,060,784)
18
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,596,527
7,018,365
11,614,892
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