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Company registration number: 02024271
BRIGHTSUN TRAVEL (UK) LIMITED
Financial statements
31 March 2024
Pearlman Rose
Chartered Accountants & Statutory Auditors
Suite 1, First Floor
Jack Dash House, 2 Lawn House Close
Docklands, London E14 9YQ
BRIGHTSUN TRAVEL (UK) LIMITED
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of Compehensive Income (including profit and loss account)
Balance sheet
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
BRIGHTSUN TRAVEL (UK) LIMITED
Directors and other information
Directors Mr Deepak Nangla
Mrs Payal Nangla
Company number 02024271
Registered office 14 Hanworth Road
Hounslow
Middlesex
TW3 IUA
Business address 14 Hanworth Road
Hounslow
Middlesex
TW3 IUA
Auditor Pearlman Rose
Chartered Accountants & Statutory Auditors
Suite 1, First Floor
Jack Dash House, 2 Lawn House Close,
Docklands, London
E14 9YQ
Accountants Astar Buisness Advisors Ltd
Chartered Certified Accountants
The Grange
1 Central Road
Morden
SM4 5PQ
Bankers Barclays Bank PLC
1 Churchill Place
London
E14 5HP
BRIGHTSUN TRAVEL (UK) LIMITED
Strategic report
Year ended 31 March 2024
The Directors present their report for Brightsun Travel (UK) Limited (the 'Company') for the year ended 31 March 2024. This report is specific to the Company and not the wider Brightsun Group.
Principal activities
The principal activity of the Company during the year was that of the provision of travel agency services to third party corporate and non-corporate customers and to its fellow subsidiary companies. There have been no significant changes in the Company's principal activities during the year and the Directors are not aware at the date of this report, of any likely changes in the Company's activities in the forthcoming year.
Results and performance
The Statement of Comprehensive Income for the year is set out on page 9. The Company's turnover for the year was £382,154,533 (2023: £349,107,919). The total Shareholders' Funds have increased during the year from £10,593,984 to £12,668,595.
The year ending March 2024 showed continuation opening of destinations across the world and in addition many new airlines commenced full use of their fleet. A key destination included the Far East which had been lagging behind, but had been a huge focus for holidays. In particular the opening of China allowed air capacity between UK, and Far east to be increased. The demand for travel was still higher than pre-pandemic levels, but the average price being paid per passenger fell as competition grew. As the company makes money on revenue, the decision was made to continue to increase market share as this would benefit the company in the long term with ability to leverage supplier costs.
During the year the company saw an increase in the number of competitor tour operators that restarted their businesses and offering discount pricing. This had an additional impact of reduced margins that the company was making.
During the Pandemic, the UK lost a large number of hospitality workers due to changing career paths. As a result the company needed to ensure that during its own growth path, the company retained and grew its staff base. This resulted in increased salary and outsourcing costs for the year.
The company saw a higher level of holiday bookings than pre pandemic levels, and this was expected due to increased advertising for the year. With this in mind the company is investing with third party to create holiday booking solutions. In addition during 2024/5 the company will bring out mobile apps for its metasearch brand Traveasy.com.
Future developments
The forecast for the forthcoming year is that that demand is going down. This is due to a number of factors, such as elections for over 50% of the world population during 2024, the continuing high cost of living in UK, and the unknown economic forecasts from the ongoing Ukraine/ Russia conflict, and the added tensions in the Middle East from the Israel and Palestine over Gaza.
The company is looking at a strategic new location for its Hounslow office moving from West London towards the centre of London in order to attract more talented staff and a wider customer base.
Directors' statutory responsibilities
The Directors are aware of the duties and responsibilities placed upon them by the Companies Acts and carry out their duties and responsibilities in a way that they consider would be most likely to promote the success of the Company for the benefit of its members, and in doing so have regard to a range of matters when making decisions for the short and long term.
They adhere to the overall group policies laid out by the members and to those relating specifically to the Company. Their main responsibilities are:-
1. Setting the values used to guide the affairs of the Company. This includes the Company's commitment to achieving its health and safety goals and the Company's adherence to the highest ethical standards in all its operations worldwide.
2. Integrating environmental improvement into business plans and strategies and seeking to plant sustainability into the Company's business processes.
3. Overseeing the Company's compliance with its statutory and regulatory obligations and ensuring that systems and processes are in place to enable these obligations to be met.
4. Setting the strategy and targets of the Company.
5. Overseeing the Company's compliance with financial reporting and disclosure obligations.
6. Overseeing the risk management of the Company.
7. Ensuring the effective corporate governance of the Company.
Responsibilities during the year
During the year, the Directors set out a plan for their tasks for the ensuing year, which includes a review of strategy, objectives and their implementation, and the review and monitoring of the Company's financial performance.
It is the duty of the accounts function to provide the Directors with appropriate, precise, and timely information on the operations and financial performance of the Company.
Risk management and internal control
The Directors acknowledge their responsibility for the Company's system of internal control and for reviewing its effectiveness. The Company's system of internal control is designed to manage any potential operational or financial risks.
The Company adopts internal controls appropriate to its business activities and geographical spread and has in place clearly defined lines of responsibility and limits of delegated authority. Comprehensive procedures provide for the appraisal, approval, control, and review of capital expenditure.
Principal risks and uncertainties
The management of the business and the execution of the Company's strategy are subject to several risks. The Company is subject to management processes applicable to the entire Group. The Group's risk management programme seeks to limit the adverse effects of these factors on the financial performance of group companies. Information on how the risks specific to the Company arise are set out below, as are the objectives, policies and processes for their management and the methods used to measure each risk. The key business risks and uncertainties affecting the Company include:
Geographic risk
The Company through its associated companies operates in several countries, each with specific political, economic and social characteristics which can give rise to various risks and uncertainties that can, on occasion, adversely impact project execution and financial performance, including but not limited to:
- Economic instability
- Legal, fiscal and regulatory uncertainty and change;
- Export controls
- Civil or political unrest; including war; and
- Regime change
Country or regional risk are identified and evaluated before and during Company operations in such markets. Appropriate risk responses are developed and implemented to mitigate the likelihood and impact of identified risks. The Company adopts a protective and rigorous approach to assessing and mitigating these risks.
Cash flow and liquidity risk
The Company's working capital position is affected by the timing of contract cash flows where the timing of receipts from customers may not necessarily match the timing of payments made to suppliers. The availability of short-term and long-term financing may be required to meet obligations as they fall due.
Research and development
The Directors are of the opinion that in order to improve the operational performance of the Company it is essential to continue to invest in mobile and cognitive technology.
Regulatory and Reporting Bodies
The company continues to be regulated by ABTA (Association of British Travel Agents) and holds an Air Travellers Organisers License (ATOL) which is regulated by the Civil Aviation Authority. The company will continue to work together with the regulatory bodies and ensure that financial forecasts, and management reports are presented to the regulatory bodies as and when they are required. These licences provide financial security and peace of mind for customers.
In the opinion of the Directors the Company is well placed to successfully manage the principal risks and uncertainties.
This report was approved by the board of directors on 22 August 2024 and signed on behalf of the board by:
Mr Deepak Nangla
Director
BRIGHTSUN TRAVEL (UK) LIMITED
Directors report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024.
Directors
The directors who served the company during the year were as follows:
Mr Deepak Nangla
Mrs Payal Nangla
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors 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 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 judgments 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; and
- 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 22 August 2024 and signed on behalf of the board by:
Mr Deepak Nangla
Director
BRIGHTSUN TRAVEL (UK) LIMITED
Independent auditor's report to the members of
BRIGHTSUN TRAVEL (UK) LIMITED
Year ended 31 March 2024
Opinion
We have audited the financial statements of BRIGHTSUN TRAVEL (UK) LIMITED (the 'company') for the year ended 31 March 2024 which comprise the Statement of Compehensive Income (including profit and loss account), Balance Sheet, statement of cash flows and 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 FRS 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 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 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.
Other Information
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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 has been prepared in accordance with applicable legal requirements.
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 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 the 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: enquiry of management about the company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an auditors 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.
Mohammad Jilani (Senior Statutory Auditor)
For and on behalf of
Pearlman Rose
Chartered Accountants & Statutory Auditors
Suite 1, First Floor
Jack Dash House, 2 Lawn House Close,
Docklands, London
E14 9YQ
22 August 2024
BRIGHTSUN TRAVEL (UK) LIMITED
Statement of compehensive income (including profit and loss account)
Year ended 31 March 2024
2024 2023
Note £ £
Turnover 4 382,154,533 349,107,919
Cost of sales ( 375,282,046) ( 340,839,823)
_______ _______
Gross profit 6,872,487 8,268,096
Administrative expenses ( 4,565,967) ( 4,511,099)
_______ _______
Operating profit 5 2,306,520 3,756,997
Other interest receivable and similar income 9 627,691 153,032
Interest payable and similar expenses 10 ( 805) -
_______ _______
Profit before taxation 2,933,406 3,910,029
Tax on profit 11 ( 732,595) ( 735,283)
_______ _______
Profit for the financial year and total comprehensive income 2,200,811 3,174,746
_______ _______
Dividends declared and paid or payable during the year 12 ( 126,200) ( 123,000)
Retained earnings at the start of the year 10,559,254 7,507,508
_______ _______
Retained earnings at the end of the year 12,633,865 10,559,254
_______ _______
All the activities of the company are from continuing operations.
BRIGHTSUN TRAVEL (UK) LIMITED
Balance sheet
31 March 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 13 15,545 17,529
Tangible assets 14 131,750 175,940
Investments 15 1,323,212 1,323,212
_______ _______
1,470,507 1,516,681
Current assets
Debtors 16 2,574,648 3,650,425
Cash at bank and in hand 39,608,885 23,302,713
_______ _______
42,183,533 26,953,138
Creditors: amounts falling due
within one year 17 ( 30,967,177) ( 17,853,673)
_______ _______
Net current assets 11,216,356 9,099,465
_______ _______
Total assets less current liabilities 12,686,863 10,616,146
Provisions for liabilities 18 ( 18,268) ( 22,162)
_______ _______
Net assets 12,668,595 10,593,984
_______ _______
Capital and reserves
Called up share capital 21 34,730 34,730
Profit and loss account 22 12,633,865 10,559,254
_______ _______
Shareholders funds 12,668,595 10,593,984
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 22 August 2024 , and are signed on behalf of the board by:
Mr Deepak Nangla
Director
Company registration number: 02024271
BRIGHTSUN TRAVEL (UK) LIMITED
Statement of changes in equity
Year ended 31 March 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 April 2022 34,730 7,507,508 7,542,238
Profit for the year 3,174,746 3,174,746
_______ _______ _______
Total comprehensive income for the year - 3,174,746 3,174,746
Dividends paid and payable ( 123,000) ( 123,000)
_______ _______ _______
Total investments by and distributions to owners - ( 123,000) ( 123,000)
_______ _______ _______
At 31 March 2023 and 1 April 2023 34,730 10,559,254 10,593,984
Profit for the year 2,200,811 2,200,811
_______ _______ _______
Total comprehensive income for the year - 2,200,811 2,200,811
Dividends paid and payable ( 126,200) ( 126,200)
_______ _______ _______
Total investments by and distributions to owners - ( 126,200) ( 126,200)
_______ _______ _______
At 31 March 2024 34,730 12,633,865 12,668,595
_______ _______ _______
BRIGHTSUN TRAVEL (UK) LIMITED
Statement of cash flows
Year ended 31 March 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 2,200,811 3,174,746
Adjustments for:
Depreciation of tangible assets 47,567 30,678
Amortisation of intangible assets 4,400 4,795
Other interest receivable and similar income ( 627,691) ( 153,032)
Interest payable and similar expenses 805 -
Gain/(loss) on disposal of tangible assets - ( 27,349)
Tax on profit 732,595 735,283
Accrued expenses/(income) 1,544,032 ( 1,540,532)
Changes in:
Trade and other debtors ( 470,755) ( 513,093)
Trade and other creditors 13,085,867 ( 7,790,892)
_______ _______
Cash generated from operations 16,517,631 ( 6,079,396)
Interest paid ( 805) -
Interest received 627,691 153,032
Tax paid ( 709,472) ( 306,182)
_______ _______
Net cash from/(used in) operating activities 16,435,045 ( 6,232,546)
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 3,377) ( 132,908)
Proceeds from sale of tangible assets - 45,000
Purchase of intangible assets ( 2,416) ( 4,380)
_______ _______
Net cash used in investing activities ( 5,793) ( 92,288)
_______ _______
Cash flows from financing activities
Proceeds from borrowings 3,120 19,805
Equity dividends paid ( 126,200) ( 123,000)
_______ _______
Net cash used in financing activities ( 123,080) ( 103,195)
_______ _______
Net increase/(decrease) in cash and cash equivalents 16,306,172 ( 6,428,029)
Cash and cash equivalents at beginning of year 23,302,713 29,730,742
_______ _______
Cash and cash equivalents at end of year 39,608,885 23,302,713
_______ _______
BRIGHTSUN TRAVEL (UK) LIMITED
Notes to the financial statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is 14 Hanworth Road, Hounslow, Middlesex, TW3 IUA.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 5 years
Other intangible assets - 20 % reducing balance
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 25 % reducing balance
Motor vehicles - 25 % reducing balance
Property Improvements - 25 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance Sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributed to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Amortisation of intangible assets 4,400 4,795
Depreciation of tangible assets 47,567 30,678
(Gain)/loss on disposal of tangible assets - ( 27,349)
Foreign exchange differences ( 9,640) ( 57,636)
_______ _______
6. Auditors remuneration
2024 2023
£ £
Fees payable for the audit of the financial statements 17,000 15,000
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative staff 31 43
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 950,911 822,147
Social security costs 1,734 1,462
Other pension costs 30,925 24,774
_______ _______
983,570 848,383
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 55,500 61,768
Company contributions to pension schemes in respect of qualifying services 17,000 12,000
_______ _______
72,500 73,768
_______ _______
9. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 627,691 153,032
_______ _______
10. Interest payable and similar expenses
2024 2023
£ £
Other interest payable and similar expenses 805 -
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 743,047 716,029
Adjustments in respect of previous periods ( 6,558) -
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 3,894) 19,254
_______ _______
Tax on profit 732,595 735,283
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25.00 % (2023: 19.00%).
2024 2023
£ £
Profit before taxation 2,933,406 3,910,029
_______ _______
Profit multiplied by rate of tax 733,352 742,906
Adjustments in respect of prior periods ( 6,558) -
Effect of capital allowances and depreciation 10,491 ( 26,877)
Deferred Tax ( 3,894) 19,254
_______ _______
Tax on profit 733,391 735,283
_______ _______
12. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 126,200 123,000
_______ _______
13. Intangible assets
Goodwill Website & software Total
£ £ £
Cost
At 1 April 2023 167,000 131,307 298,307
Additions - 2,416 2,416
_______ _______ _______
At 31 March 2024 167,000 133,723 300,723
_______ _______ _______
Amortisation
At 1 April 2023 158,753 122,025 280,778
Charge for the year 2,061 2,339 4,400
_______ _______ _______
At 31 March 2024 160,814 124,364 285,178
_______ _______ _______
Carrying amount
At 31 March 2024 6,186 9,359 15,545
_______ _______ _______
At 31 March 2023 8,247 9,282 17,529
_______ _______ _______
14. Tangible assets
Fixtures, Fittings & equipment Motor vehicles Property improvements Total
£ £ £ £
Cost
At 1 April 2023 723,820 152,567 150,792 1,027,179
Additions 3,377 - - 3,377
_______ _______ _______ _______
At 31 March 2024 727,197 152,567 150,792 1,030,556
_______ _______ _______ _______
Depreciation
At 1 April 2023 676,239 24,209 150,791 851,239
Charge for the year 15,477 32,090 - 47,567
_______ _______ _______ _______
At 31 March 2024 691,716 56,299 150,791 898,806
_______ _______ _______ _______
Carrying amount
At 31 March 2024 35,481 96,268 1 131,750
_______ _______ _______ _______
At 31 March 2023 47,581 128,358 1 175,940
_______ _______ _______ _______
15. Investments
Other investments other than loans Total
£ £
Cost
At 1 April 2023 and 31 March 2024 1,323,212 1,323,212
_______ _______
Impairment
At 1 April 2023 and 31 March 2024 - -
_______ _______
Carrying amount
At 31 March 2024 1,323,212 1,323,212
_______ _______
At 31 March 2023 1,323,212 1,323,212
_______ _______
16. Debtors
2024 2023
£ £
Trade debtors 2,535,703 1,859,080
Prepayments and accrued income 3,911 1,550,248
Other debtors 35,034 241,097
_______ _______
2,574,648 3,650,425
_______ _______
17. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 29,715,602 16,209,445
Accruals and deferred income 31,500 34,000
Corporation tax 743,047 716,030
Social security and other taxes 76,548 36,504
Director loan accounts 143,307 140,187
Other creditors 257,173 717,507
_______ _______
30,967,177 17,853,673
_______ _______
18. Provisions
Deferred tax (note 19) Total
£ £
At 1 April 2023 22,162 22,162
Charges against provisions ( 3,894) ( 3,894)
_______ _______
At 31 March 2024 18,268 18,268
_______ _______
19. Deferred tax
The deferred tax included in the Balance Sheet is as follows:
2024 2023
£ £
Included in provisions (note 18) 18,268 22,162
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 30,925 (2023: £ 24,774 ).
21. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares shares of £ 1.00 each 34,730 34,730 34,730 34,730
_______ _______ _______ _______
22. Reserves
Reserve for own shares.
23. Analysis of changes in net debt
At 1 April 2023 Cash flows At 31 March 2024
£ £ £
Cash and cash equivalents 23,302,713 16,306,172 39,608,885
Debt due within one year (140,187) (3,120) (143,307)
_______ _______ _______
23,162,526 16,303,052 39,465,578
_______ _______ _______
24. Contingent assets and liabilities
The company's banks have given guarantees amounting to £1,000,000 in favour of Air India & £100,000 for Bangladesh Biman & £100,000 for Pakistan International Airlines. The Bangladesh Biman & Pakistan International Airlines guarantees are also covered by a floating charge on the company deposits.
25. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Deepak Nangla ( 87,137) - - ( 87,137)
Mrs Payal Nangla ( 53,050) ( 1,120) - ( 54,170)
_______ _______ _______ _______
( 140,187) ( 1,120) - ( 141,307)
_______ _______ _______ _______
2023
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Deepak Nangla ( 77,262) ( 86,875) 77,000 ( 87,137)
Mrs Payal Nangla ( 43,120) ( 53,050) 43,120 ( 53,050)
_______ _______ _______ _______
( 120,382) ( 139,925) 120,120 ( 140,187)
_______ _______ _______ _______
26. Related party transactions
During the year company paid rent of £10,000 (2023 - £10,000) to Mr Deepak Nangla and£10,000 to Mrs Payal Nangla (Directors) in respect of a branch at Hanworth Road, Hounslow.
27. Controlling party
The company is controlled by Mr. Deepak Nangla who holds 62.5% of the shareholding of the company.