REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 29 February 2024 |
for |
Dhiman Enterprises Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 29 February 2024 |
for |
Dhiman Enterprises Limited |
Dhiman Enterprises Limited (Registered number: 05375270) |
Contents of the Financial Statements |
for the Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Statement of Financial Position | 13 |
Statement of Changes in Equity | 14 |
Statement of Cash Flows | 15 |
Notes to the Statement of Cash Flows | 16 |
Notes to the Financial Statements | 17 |
Dhiman Enterprises Limited |
Company Information |
for the Year Ended 29 February 2024 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Chiswick Gate |
598- 608 Chiswick High Road |
London |
W4 5RT |
Dhiman Enterprises Limited (Registered number: 05375270) |
Strategic Report |
for the Year Ended 29 February 2024 |
The directors present their strategic report for the year ended 29 February 2024. |
Review of business |
The company is a family enterprise that imports a wide range of branded consumer goods for wholesale and retail sales in the UK and European Union. During the year, the company completed the transfer of all of its stock, purchases and sales systems to an integrated technological digital platform utilising Microsoft Dynamics 365. The company remains well-positioned for financial success in 2024 and beyond with diverse revenue streams, commitment to innovation, strong financial reserves, and strategic partnerships to support financial stability and growth potential. |
Key performance indicators |
In the Year ended 29th February 2024, the company made a profit of £2,288,626 (28th February 2023: £2,379,711). The turnover increased by 1.9%, and there was a decrease in cost of sale resulting in an increase in gross margin from17% in 2023 to 19.5% in 2024.This is due to a slight increase in the price of goods. The directors monitor gross profit margins from continuing activities, as another key performance indicator. |
Throughout 2023, the cost of certain raw materials increased as a result of increased inflation and the situation in Ukraine disrupting the general supply chain and leading to some suppliers increasing their prices. The company has since widened its supplier base and steps have been implemented to introduce efficiencies with the intention of maintaining or improving gross margins. |
Dhiman Enterprises Limited (Registered number: 05375270) |
Strategic Report |
for the Year Ended 29 February 2024 |
Principal risks and uncertainties |
The company faces a number of business risks and uncertainties due to trading conditions and new competition. In view of this, the directors are looking carefully at both existing and potential new markets. In particular, this table sets out the key risks that have been identified, with the company's approach to mitigating those risks. |
Risk | Impact on Company | Mitigation |
Supply chain and economic disruption in China |
Despite the continued loosening of Covid-19 related restrictions in China, there remains an increased risk of supply chain disruptions and wider economic disruption that may impact customer demand and margins in the future, in particular relating to the large numbers of insolvencies arising in the Chinese electronics sector in 2023 |
Responsive action continues to be taken to widen the supplier base following disruptions to the supply chain during national lockdowns; the company now has a number of alternative suppliers it could use for each of its products and components. The company is continuing to work closely with its new and long-standing suppliers to minimise the risk of future disruption. The company has a loyal but diverse customer base, both in terms of revenue and concentration, reducing its exposure to a temporary downturn in trade. The company has also introduced enhanced credit review processes in light of the pandemic to mitigate the risk of non-payment. |
Exposure to foreign economies |
The company only has one overseas market (the European Union|) at present, but even these limited sales give rise to foreign exchange risks. Changing legislation in other regulations can affect product specification, as does the effect of the UK having left the European Union. More diversity in legislation can only increase manufacturing costs. |
The directors are taking a cautious approach to expansion into overseas markets, preferring to concentrate on consolidating the domestic position |
Macroeconomic uncertainty in UK |
At present, there is an increased level of macroeconomic uncertainty, including sustained higher interest rates, cost and wage inflation. This is starting to impact on levels of customer demand, risk of non-payment and a rise in our own operational costs particularly in relation to our supply chain |
We are actively monitoring the situation and have contingency measures in place to manage these risks which include the widening of the supplier base and working with those suppliers to build relationships and obtain the best possible prices.The company has a loyal customer base, which somewhat reduces its exposure to a temporary downturn in trade.The company has also introduced enhanced credit review processes to mitigate the risk of non-payment.++++++ |
Dhiman Enterprises Limited (Registered number: 05375270) |
Strategic Report |
for the Year Ended 29 February 2024 |
Product obsolescence |
The industry is fast moving and there are risks associated with investing too heavily in a product that then becomes obsolete. In particular, this can lead to wasted costs, written off inventory and opportunity cost of time that could have been invested in other areas. There is also a reputational risk in being associated with out-of-date products |
Continuous monitoring of the trade and popular press as well as attendance at trade shows allows identification of trends and identification of products.++++ |
New entrants to the market |
The barriers to entry are fairly low, and new entrants who specialise in only one item and invest significant capital can make cost savings, particularly if their production is based overseas. New entrants can therefore potentially offer low selling prices to gain initial market share, which directly affects sales |
The company has a sufficiently diverse product range to allow some absorption of issues from temporary loss of trade. Development of new products continues, with effort directed towards innovation so that the company's products can be clearly distinguished from those of competitors |
Future developments |
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and development of new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations |
Strategy and objectives |
In addition to software improvements in more efficient stock management as well as increasing turnover, the company remains well-prepared for future expansion. |
Building on our history of successfully introducing affordable products in the wholesale markets, we are set to launch new offerings to boost our sales in the coming year. |
The company faces a number of business risks and uncertainties due to trading conditions and new competition. In view of this, the directors are looking carefully at both existing and potential new markets. In particular, this table sets out the key risks that have been identified, with the company's approach to mitigating those risks. |
Risk management |
In our commitment to risk management, we ensure sufficient diversification in our supplier base to help ensure our resilience against potential supply chain limitations. |
On behalf of the board: |
Dhiman Enterprises Limited (Registered number: 05375270) |
Report of the Directors |
for the Year Ended 29 February 2024 |
The directors present their report with the financial statements of the company for the year ended 29 February 2024. |
Principal activity |
The principal activity of the company in the year under review was that of a wholesale and retail general commercial company. |
Dividends |
The directors recommended that no dividend be paid. |
Directors |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
Going concern |
The directors have carefully considered the impact of the wider macroeconomic uncertainty on the company's financial position, liquidity, and future performance. As set out in the strategic report, the company has continued to trade strongly throughout this year and the directors believe that it is experiencing good levels of sales growth and profitability. Therefore, the directors believe that the company is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Dhiman Enterprises Limited (Registered number: 05375270) |
Report of the Directors |
for the Year Ended 29 February 2024 |
Auditors |
The auditors, The GKP Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Dhiman Enterprises Limited |
Opinion |
We have audited the financial statements of Dhiman Enterprises Limited (the 'company') for the year ended 29 February 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Dhiman Enterprises 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Dhiman Enterprises Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities due to fraud are inherently more difficult to detect, therefore our procedures may be unable to detect all such irregularities. |
The extent to which the audit was considered capable of detecting irregularities including fraud. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations. |
-we identified the laws and regulations applicable to the company through discussions with directors and the management, and from our commercial knowledge and experience of the distribution and supply sector. |
-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation. |
-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and |
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
-performed analytical procedures to identify any unusual or unexpected relationships. |
-tested journal entries to identify unusual transactions. |
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
-investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation. |
-reading the minutes of meetings and additional correspondence of those charged with governance. |
Report of the Independent Auditors to the Members of |
Dhiman Enterprises Limited |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing any available correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chiswick Gate |
598- 608 Chiswick High Road |
London |
W4 5RT |
Dhiman Enterprises Limited (Registered number: 05375270) |
Income Statement |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
as | restated |
Notes | £ | £ |
Turnover |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) |
Administrative expenses | ( |
) | ( |
) |
2,247,245 | 2,248,591 |
Other operating income |
Operating profit | 5 |
Interest receivable and similar income |
Profit before taxation |
Tax on profit | 6 | ( |
) | ( |
) |
Profit for the financial year |
Dhiman Enterprises Limited (Registered number: 05375270) |
Other Comprehensive Income |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
as | restated |
Notes | £ | £ |
Profit for the year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Prior year adjustment |
Total comprehensive income since last annual report |
1,947,794 |
Dhiman Enterprises Limited (Registered number: 05375270) |
Statement of Financial Position |
29 February 2024 |
29.2.24 | 28.2.23 |
as | restated |
Notes | £ | £ |
Fixed assets |
Intangible assets | 9 |
Tangible assets | 10 |
Current assets |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
Provisions for liabilities | 16 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 17 |
Retained earnings | 18 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Dhiman Enterprises Limited (Registered number: 05375270) |
Statement of Changes in Equity |
for the Year Ended 29 February 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2022 |
Prior year adjustment | - |
As restated |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 29 February 2024 |
Dhiman Enterprises Limited (Registered number: 05375270) |
Statement of Cash Flows |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | 90,969 | (76,463 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
1,307,408 |
Cash and cash equivalents at end of year |
2 |
2,552,594 |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Statement of Cash Flows |
for the Year Ended 29 February 2024 |
1. | Reconciliation of profit before taxation to cash generated from operations |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance income | (41,002 | ) | (7,637 | ) |
2,295,600 | 2,378,672 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 2,677,498 | 2,552,594 |
Bank overdrafts | ( |
) |
2,676,799 | 2,552,594 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
as restated |
£ | £ |
Cash and cash equivalents | 2,552,594 | 1,307,408 |
3. | Analysis of changes in net funds |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,552,594 | 124,904 | 2,677,498 |
Bank overdrafts | - | (699 | ) | (699 | ) |
2,552,594 | 2,676,799 |
Total | 2,552,594 | 124,205 | 2,676,799 |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements |
for the Year Ended 29 February 2024 |
1. | Statutory information |
Dhiman Enterprises Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised when all the following conditions are satisfied: |
-the company has transferred to the buyer the significant risks and rewards of ownership of the goods. |
-the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. |
-the amount of revenue can be measured reliably. |
-it is probable that the economic benefits associated with the transaction will flow to the company; and |
-the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Specifically, revenue is recognised when the goods are delivered, and legal title has passed |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their estimated useful life of nil years. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on plant and equipment is charged to profit or loss so as to write off their value, over their estimated useful lives of between 5 and 20 years using the straight-line method. |
Assets held under finance leases are depreciated in the same manner as owned assets. |
At each balance sheet date, the company reviews the carrying amounts of its property, plant, and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than it carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | Accounting policies - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the number of inventories recognised as an expense in the period in which the reversal occurs. |
Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
Cash and cash equivalents. |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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 or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | Accounting policies - continued |
Foreign currencies |
The financial statements are presented in Sterling, which is also the functional currency of the company. Transactions in currencies, other than the functional currency of the company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
Hire purchase and leasing commitments |
Assets that are held by company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Temporary rent concessions granted as a direct consequence of the Covid-19 pandemic are recognised on a systematic basis over the periods that the change in lease payments is intended to compensate. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i)the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions or has joint control over the company. |
(ii)the company and the party are subject to common control. |
(iii)the party is an associate of the company or a joint venture in which the company is a venturer. |
(iv)the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control, or significant influence of such individuals. |
(v)the party is a close family member of a party referred to in (i) or is an entity under the control, joint control, or significant influence of such individuals. |
(vi)the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
(vii)the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below. |
4. | Employees and directors |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
29.2.24 | 28.2.23 |
as | restated |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Directors' remuneration |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
6. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
7. | Dividends |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Ordinary shares of 1 each |
Final |
8. | Prior year adjustment |
A prior year adjusment was made in 2023 to correct an overstatement of corporation tax in the year-ended 2022 |
9. | Intangible fixed assets |
Patents |
and |
licences |
£ |
Cost |
At 1 March 2023 |
and 29 February 2024 |
Net book value |
At 29 February 2024 |
At 28 February 2023 |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
10. | Tangible fixed assets |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
Cost |
At 1 March 2023 |
Additions |
At 29 February 2024 |
Depreciation |
At 1 March 2023 |
Charge for year |
At 29 February 2024 |
Net book value |
At 29 February 2024 |
At 28 February 2023 |
11. | Stocks |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Stocks |
12. | Debtors: amounts falling due within one year |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Trade debtors |
Other debtors |
Loans | 811,148 | 790,263 |
Prepayments and accrued income |
13. | Creditors: amounts falling due within one year |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 30,051 | 41,237 |
Other creditors |
Accrued expenses |
Dhiman Enterprises Limited (Registered number: 05375270) |
Notes to the Financial Statements - continued |
for the Year Ended 29 February 2024 |
14. | Creditors: amounts falling due after more than one year |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Directors' loan accounts | 137,970 | 47,001 |
15. | Loans |
An analysis of the maturity of loans is given below: |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | Provisions for liabilities |
29.2.24 | 28.2.23 |
as | restated |
£ | £ |
Other provisions | 242,632 | 9,978 |
17. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 29.2.24 | 28.2.23 |
value: | as restated |
£ | £ |
Ordinary | 1 | 150 | 150 |
18. | Reserves |
Retained |
earnings |
£ |
At 1 March 2023 |
Profit for the year |
Dividends | ( |
) |
At 29 February 2024 |
19. | Related party disclosures |
Dhiman Enterprises Ltd leased a warehouse from Dhiman Real Estate Ltd for £420,000 per annum. |
Dhiman Real Estates Ltd is a business owned by the Directors and shareholders of Dhiman Enterprises Ltd. |
Dhiman Enterprises Ltd has pledged a guarantee of £3,412,500 to secure Dhiman Estates Ltd.'s loan with Nat west Bank Plc. |