Registered number
04480488
SMK Textiles Limited
Filleted Accounts
31 July 2024
SMK Textiles Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2
Profit and loss account 3
Balance sheet 4
Statement of changes in equity 5
Notes to the accounts 6
SMK Textiles Limited
Company Information
Directors
S M Khan
Accountants
Daawie & Mitha LLP
Chartered Certified Accountants
64 Bradford Road
Dewsbury
WF13 2DU
Bankers
HSBC
Market Place
Dewsbury
West Yorkshire
WF17 5NY
Registered office
3 Linefield House
Batley
West Yorkshire
WF17 0ES
Registered number
04480488
SMK Textiles Limited
Registered number: 04480488
Directors' Report
The directors present their report and accounts for the year ended 31 July 2024.
Directors
The following persons served as directors during the year:
S M Khan
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on 14 October 2024 and signed on its behalf.
S M Khan
Director
SMK Textiles Limited
Profit and Loss Account
for the year ended 31 July 2024
2024 2023
£ £
Turnover 8,142,387 9,605,230
Cost of sales (7,211,248) (8,372,562)
Gross profit 931,139 1,232,668
Administrative expenses (604,215) (799,949)
Other operating income - 8
Operating profit 326,924 432,727
Profit on the disposal of tangible fixed assets - 534
Interest receivable 146 -
Interest payable (28,190) (29,961)
Profit before taxation 298,880 403,300
Tax on profit (63,342) (92,490)
Profit for the financial year 235,538 310,810
SMK Textiles Limited
Registered number: 04480488
Balance Sheet
as at 31 July 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 3 46,566 34,496
Current assets
Stocks 588,514 438,514
Debtors 4 4,614,232 4,238,069
Cash at bank and in hand 296,396 592,602
5,499,142 5,269,185
Creditors: amounts falling due within one year 5 (2,135,564) (2,021,657)
Net current assets 3,363,578 3,247,528
Total assets less current liabilities 3,410,144 3,282,024
Creditors: amounts falling due after more than one year 6 (163,333) (258,333)
Provisions for liabilities - (7,418)
Net assets 3,246,811 3,016,273
Capital and reserves
Called up share capital 100 100
Profit and loss account 3,246,711 3,016,173
Shareholders' funds 3,246,811 3,016,273
The directors are 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 directors acknowledge their 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.
S M Khan
Director
Approved by the board on 14 October 2024
SMK Textiles Limited
Statement of Changes in Equity
for the year ended 31 July 2024
Share Share Re- Profit Total
capital premium valuation and loss
reserve account
£ £ £ £ £
At 1 August 2022 100 - - 2,715,363 2,715,463
Profit for the financial year 310,810 310,810
Dividends (10,000) (10,000)
At 31 July 2023 100 - - 3,016,173 3,016,273
At 1 August 2023 100 - - 3,016,173 3,016,273
Profit for the financial year 235,538 235,538
Dividends (5,000) (5,000)
At 31 July 2024 100 - - 3,246,711 3,246,811
SMK Textiles Limited
Notes to the Accounts
for the year ended 31 July 2024
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.
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:
Leasehold land and buildings over the lease term
Fixtures, fittings, plant and equipment 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.
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.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 11 12
3 Tangible fixed assets
Leasehold improvement Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 August 2023 6,079 127,859 150,769 284,707
Additions - - 28,833 28,833
At 31 July 2024 6,079 127,859 179,602 313,540
Depreciation
At 1 August 2023 4,742 126,719 118,750 250,211
Charge for the year 608 942 15,213 16,763
At 31 July 2024 5,350 127,661 133,963 266,974
Net book value
At 31 July 2024 729 198 45,639 46,566
At 31 July 2023 1,337 1,140 32,019 34,496
4 Debtors 2024 2023
£ £
Trade debtors & prepayments 1,754,276 1,924,398
Other debtors 2,859,956 2,313,671
4,614,232 4,238,069
5 Creditors: amounts falling due within one year 2024 2023
£ £
Bank loans and overdrafts 100,000 100,000
Trade creditors 1,892,062 1,784,570
Taxation and social security costs 90,995 89,762
Other creditors 52,507 47,325
2,135,564 2,021,657
6 Creditors: amounts falling due after one year 2024 2023
£ £
Bank loans 163,333 258,333
7 Related party transactions
Other debtors includes loans to related parties of £2,820,756 ( 2022: £2,160,900). The loans are non interest bearing and no repayment date has been fixed except that they are not repayable within 1 year.

SMK Textiles Ltd is related to these companies by virtue of common shareholders and directors.
8 Controlling party
The company was under the control of the director S M Khan together with close family members.
9 Other information
SMK Textiles Limited is a private company limited by shares and incorporated in England. Its registered office is:
3 Linefield House
Batley
West Yorkshire
WF17 0ES
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