REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30 April 2024 |
for |
GANDHI ORIENTAL FOODS LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30 April 2024 |
for |
GANDHI ORIENTAL FOODS LIMITED |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Contents of the Financial Statements |
FOR THE YEAR ENDED 30 APRIL 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 |
GANDHI ORIENTAL FOODS LIMITED |
Company Information |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditor |
Global House |
303 Ballards Lane |
London |
N12 8NP |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Strategic Report |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report for the year ended 30 April 2024. |
OVERVIEW |
Gandhi Oriental Foods Limited is a leading provider of supplies to Asian restaurants in Southeast England. The Company specialises in offering a wide range of high-quality products catering to restaurants, wholesalers, and retailers. Over the years, the Company has built a strong reputation through solid relationships with both customers and suppliers. Despite the challenges posed by economic volatility, the Company remains committed to delivering excellent service and maintaining a continuous supply of products to its customers. |
REVIEW OF BUSINESS |
The financial year 2023/24 proved to be another successful period for the Company, marked by strong trading activity and sustained growth. The Company continued to build on its solid reputation by nurturing strong relationships with both customers and suppliers, reinforcing its position as a leading provider of Asian restaurant supplies in Southeast England. The Company experienced a 5.27% increase in revenue compared to the previous year, primarily driven by inflationary price adjustments. |
To safeguard the Company's gross profit margin, the directors actively sought out high-quality goods, leveraging their network of suppliers to secure the best possible prices. |
The retention of key staff and strong relationships with leading customers and suppliers continued to be pivotal to the Company's operational success. By maintaining these critical partnerships, the Company has solidified its position as a trusted supplier of Asian foods in the region. |
RESULTS AND PERFORMANCE |
The results for the year, as set out on pages 11 - 14 show a profit before tax of £464,689. The retention of key staff members, maintaining solid relationships with leading customers and suppliers and the investment in warehousing facilities and processes, as well as the Company's strong reputation, is continuing to manifest itself in profitability. Results have surpassed management expectations and they have continued to focus on profitable growth which they are confident should maintain the upward trend in net profitability over the next three years. |
During the year the growth trajectory continued with sales up 5.27% on the previous year, more importantly, net profit has risen in quantum and percentage to 3.09%. The Directors will continue to manage growth to continue to improve profitability by more efficient and effective use of resources. |
As of 30 April 2024, the Shareholders' Funds totalled £8,866,526 (2023: £8,567,912). |
TRADING ENVIRONMENT |
The UK wholesale market, particularly in the food and restaurant supply sector, faced several challenges in 2023/24, including supply chain disruptions, inflationary pressures, and economic uncertainty. Customers became increasingly price-sensitive as a result of the rising cost of living and broader economic concerns. The wholesale sector, including the cash and carry business, has seen heightened competition as businesses attempt to balance affordability with the rising costs of goods, energy, and labour. |
The Company's focus on competitive pricing, cost control, and strategic purchasing allowed it to mitigate these challenges, ensuring that customers continued to receive value for money without compromising on quality. The Directors are also continuously assessing the market and broader environment to identify further opportunities and are optimistic about the potential for growth in the short to medium term. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Strategic Report |
FOR THE YEAR ENDED 30 APRIL 2024 |
STRATEGY |
In response to the increasingly competitive and volatile market conditions, the Directors have taken a cautious yet proactive approach. By closely monitoring both purchase and selling prices, the Company ensures it can react swiftly to market shifts, protecting margins while meeting customer expectations. At the same time, the niche focus of the business, concentrating on ethnic foods and specialised sectors like restaurants and takeaways has aided the company to set itself apart from other competitors in the market. |
The Directors are optimistic about future growth prospects, especially in the short to medium term. The Company is continuously assessing the market and exploring new opportunities, both in its core business and in potential new product lines or services. Key areas of focus include: |
Product Diversification: |
Expanding the product range to cater to the growing demand for ethnic and specialty foods, particularly those aligned with evolving consumer trends towards healthier and more sustainable food options. |
Sustainability: |
The Company is exploring ways to adopt more sustainable practices, such as reducing plastic packaging, improving energy efficiency in operations, and sourcing more ethically produced goods. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors recognise several key risks and uncertainties that may impact the Company: |
Economic conditions: |
The current depressed economic climate poses a risk to demand, particularly among smaller restaurants and retailers, who may struggle with higher costs. |
Inflation: |
Continued inflationary pressure could lead to rising operational costs, potentially squeezing profit margins if not managed carefully. |
Foreign Exchange Risks: |
The company is subject to fluctuations in currency exchange rates, which can affect the costs of goods and overall financial performance. |
Supply Chain Disruptions: |
Brexit-related regulations, global supply chain delays, and rising transportation costs could create challenges in sourcing products. |
Labour Market Issues: |
Staffing challenges, especially in warehouse operations and logistics, could impact the Company's ability to meet demand efficiently. |
Despite these risks, the Company remains well-positioned to adapt to market challenges through its agile pricing strategies, strong supplier relationships, liquidity management, supplier diversification and commitment to delivering value to its customers. |
KEY PERFORMANCE INDICATORS (KPI) |
The following KPIs are used to monitor the efficiency and profitability of the business and to optimise working capital. |
Gross profit | >15% |
Net profit margin | >2% |
Inventory turnover ratio | >75 |
FUTURE DEVELOPMENTS |
The UK economy seems volatile at present, and likely to remain so. Interest rates remain high albeit with a small decrease already seen, with further reductions forecast by the end of 2024. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Strategic Report |
FOR THE YEAR ENDED 30 APRIL 2024 |
To cater for the evolving preferences of consumers, the Company is constantly expanding its product range to include more organic, gluten-free, and health-oriented Asian food products. |
Lastly, the Company is also committed to sustainability initiatives with the aim of transitioning to eco-friendly packaging solutions and minimising its overall carbon footprint. |
ON BEHALF OF THE BOARD: |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Report of the Directors |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of wholesale distributors of foodstuffs and provisions primarily to the Asian catering establisments. |
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect the business to continue at its present rate. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company utilises financial instruments to support its operational and strategic objectives. These instruments primarily include trade receivables, trade payables, borrowings and cash and cash equivalents. The company does not engage in speculative use of financial instruments. |
Risk Management Objectives and Policies |
The company is exposed to various financial risks arising from its business activities. The primary risks include price risk, credit risk, liquidity risk, and cash flow risk. The board of directors has established policies to identify, measure, and mitigate these risks to safeguard the company's financial stability and ensure compliance with regulatory requirements. |
Price Risk |
Gandhi Oriental Foods Limited is exposed to price volatility in raw materials, particularly spices, grains, and edible oils, which are critical to its operations. To manage price risk, the company leverages their network of suppliers to secure the best possible prices. |
Credit Risk |
Credit risk arises from the potential failure of counterparties to meet their contractual obligations. The company's exposure to credit risk is primarily related to trade receivables from customers. Gandhi Oriental Foods Limited mitigates this risk by performing creditworthiness assessments, setting credit limits, and maintaining a diversified customer base. |
Liquidity Risk |
Liquidity risk pertains to the company's ability to meet its financial obligations as they fall due. Gandhi Oriental Foods Limited manages this risk by regularly monitoring cash flow forecasts and ensuring access to sufficient funding through committed credit facilities, operational cash generation, and maintaining appropriate levels of cash reserves. |
Cash Flow Risk |
Fluctuations in cash inflows and outflows can impact the company's liquidity position. The company mitigates cash flow risk by aligning payment terms with receivables and payables, and managing the timing of significant expenditures. Seasonal variations in demand are also considered in cash flow planning. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Report of the Directors |
FOR THE YEAR ENDED 30 APRIL 2024 |
Monitoring and Review |
The board of directors oversees the company's risk management framework, ensuring that policies and procedures remain effective and aligned with the company's objectives. Financial risks are reviewed periodically, and adjustments are made to the company's strategies and controls in response to changes in the operating environment or financial landscape. |
By adopting a proactive approach to risk management, Gandhi Oriental Foods Limited aims to minimise the impact of financial uncertainties on its performance and to uphold stakeholder confidence in its financial stewardship. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future developments. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, KJ Pittalis and Partners LLP, 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 |
Gandhi Oriental Foods Limited |
Opinion |
We have audited the financial statements of Gandhi Oriental Foods Limited (the 'company') for the year ended 30 April 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 30 April 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 |
Gandhi Oriental Foods 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 Directors' Responsibilities Statement set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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 is detailed below: |
We considered the nature of the Company's industry and its control environment and reviewed the Company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We enquired of management about their own identification and assessment of the risks of fraud and irregularities. |
We obtained an understanding of the legal and regulatory framework that the Company operates in and identified the key laws and regulations that: |
- | Had a direct effect on the determination of the material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation, financial conduct authority regulations; and |
- | Do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud, and how and where fraud might occur in the financial statements. In common with all audits under the ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
Report of the Independent Auditors to the Members of |
Gandhi Oriental Foods Limited |
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments: assessed whether the judgements made in making accounting estimates are indicative of a potential bias: and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addition to the above, our procedures to respond to the risks identified included the following: |
- | Reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having direct effect on the financial statements; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | Enquiring of management, concerning actual and potential litigation and claims, and instances of noncompliance with laws and regulations; and |
- | Reading minutes of meetings of those charged with governance. |
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 controls 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 of the effectiveness of the company's internal control; |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related party disclosures made by the directors; |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, if uncertainty exists, we are required to draw attention in our Auditors' 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 Auditors' 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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Gandhi Oriental Foods Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditor |
Global House |
303 Ballards Lane |
London |
N12 8NP |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Income Statement |
FOR THE YEAR ENDED 30 APRIL 2024 |
30/4/24 | 30/4/23 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Loan balance write-off | 6 |
460,809 | 106,625 |
Interest receivable and similar income |
465,287 | 106,625 |
Amounts written off investments | 7 | 500 | - |
464,787 | 106,625 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Other Comprehensive Income |
FOR THE YEAR ENDED 30 APRIL 2024 |
30/4/24 | 30/4/23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of freehold property |
Depreciation on revaluation | ( | ) |
Income tax relating to components of other comprehensive income | ( | ) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Statement of Financial Position |
30 APRIL 2024 |
30/4/24 | 30/4/23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( | ) |
PROVISIONS FOR LIABILITIES | 18 | ( | ) | ( | ) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - | ( | ) |
Balance at 30 April 2024 |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Statement of Cash Flows |
FOR THE YEAR ENDED 30 APRIL 2024 |
30/4/24 | 30/4/23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( | ) | ( | ) |
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 |
Amts owed by/to related co. - Movement | 169,494 | (211,513 | ) |
Directors' loan repaid | (215,295 | ) | - |
Net cash from financing activities | ( | ) | ( | ) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 363,792 |
Cash and cash equivalents at end of year | 2 | 1,030,585 | 444,842 |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Statement of Cash Flows |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30/4/24 | 30/4/23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Impairment of fixed asset investments | 500 | - |
Finance costs | 98 | 6 |
Finance income | (4,478 | ) | - |
523,552 | 160,919 |
Decrease in stocks |
(Increase)/decrease in trade and other debtors | ( | ) |
Decrease 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 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 1,030,585 | 444,842 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 444,842 | 363,792 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank | 444,842 | 585,743 | 1,030,585 |
444,842 | 1,030,585 |
Total | 444,842 | 585,743 | 1,030,585 |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Gandhi Oriental Foods Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
No significant judgements have had to be made by management in preparing these financial statements. |
With regard to freehold property the directors have made key assumptions in the determination of the fair value of freehold property in respect of the state of the property market in the location where the property is situated and in respect of the range of reasonable fair value estimates of the asset. The valuation method is further described in Note 11 together with the valuation of the property at the reporting date. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax. |
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met for the company's activities described below. |
Sales of goods |
Sales of goods are recognised when the risks and rewards of ownership have been transferred and no other significant obligation remains unfulfilled that may affect the customer's acceptance of the goods. In most cases this is at the point of delivery. |
Goodwill |
Acquired goodwill is written off in equal instalments over the its life. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - | 25% on reducing balance |
Motor vehicles | - |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
|
Investments in associates |
Investments in associates undertakings are recognised at cost less impairment. |
Stocks |
Stock is valued at the lower of cost and net realisable value. Net realisable value represents estimated selling price less costs to complete and sell. Cost is calculated on a first in, first out basis and includes all costs of purchase, and other costs incurred in bringing the inventories to their present location and condition. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost. |
Investments |
Equity investments are measured at fair value through profit or loss , except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contacts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contacts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payments is charged to the profit and loss account so as to produce a constant periodic rate charge on the net obligation outstanding in each period. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. |
Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
Inventories are also assessed for impairment at each reporting date. The carrying amount of each item of inventory, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of inventory or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value. |
Going concern |
The directors believe that preparing the financial statements on a going concern basis is appropriate. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | EMPLOYEES AND DIRECTORS |
30/4/24 | 30/4/23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30/4/24 | 30/4/23 |
Logistics and distribution | 20 | 15 |
Administration and finance | 2 | 2 |
Procurement and supply chain | 9 | 9 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
30/4/24 | 30/4/23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
6. | EXCEPTIONAL ITEMS |
30/4/24 | 30/4/23 |
£ | £ |
Loan balance write-off | ( | ) |
The directors have assessed the loan issued to Mongoose Brewing Company Limited, a company in which Gandhi Oriental Foods Limited holds a 50% interest. Following their review they do not consider that the amount due to the company will be recovered and have therefore written off this amount as an exceptional item. |
7. | AMOUNTS WRITTEN OFF INVESTMENTS |
30/4/24 | 30/4/23 |
£ | £ |
Amounts w/o invs | 500 | - |
As at the year end date, the directors have reviewed the investments held by the company and consider the value of its investment in Mongoose Brewing Company Limited to be impaired. The investment and any associated loans issued have therefore been written off to the income statement. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30/4/24 | 30/4/23 |
£ | £ |
Bank interest |
Interest on corporation tax |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30/4/24 | 30/4/23 |
£ | £ |
Current tax: |
UK corporation tax |
prior year tax | 2,220 | - |
Total current tax |
Deferred tax | ( | ) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 19.49%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30/4/24 | 30/4/23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
Deferred tax on accelerated capital allowances | (3,052 | ) | 5,416 |
Total tax charge | 166,075 | 31,166 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30 April 2024. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TAXATION - continued |
30/4/23 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | (434,121 | ) | 1,302,362 |
Depreciation on revaluation | ( | ) | - | (13,709 | ) |
1,722,774 | (434,121 | ) | 1,288,653 |
In the financial year ended 30 April 2024, the tax rate applicable to the company increased from 19% to 25%. This change was due to the implementation of provisions set out in the Finance Act 2021 and subsequent confirmation in the Finance Act 2022. These acts introduced an increase in the main rate of corporation tax for companies with profits exceeding £250,000, effective from 1 April 2023. |
The change in tax rate has been taken into account in the calculation of deferred tax balances as at 30 April 2024. |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
AMORTISATION |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 30 April 2024 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2023 | 1,736,483 | - | - | - | 1,736,483 |
Cost | 2,877,667 | 731,764 | 122,340 | 177,888 | 3,909,659 |
4,614,150 | 731,764 | 122,340 | 177,888 | 5,646,142 |
The fair value of the freehold properties at April 2024 has been arrived at on the basis of a professional valuation carried out in the year ended 30 April 2023 by Copping Joyce, Chartered Certified valuers. Based on the professional valuation carried out, the directors consider that the values are fairly stated at the reporting date. |
12. | FIXED ASSET INVESTMENTS |
Interest in | Unlisted |
associate | investments | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 500 | 85,620 |
Impairments | ( | ) | (500 | ) |
At 30 April 2024 | 85,120 |
NET BOOK VALUE |
At 30 April 2024 | 85,120 |
At 30 April 2023 | 85,620 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Associated company |
Registered office: Global House 303 Ballards Lane, London, N12 8NP |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves | ( | ) | ( | ) |
Profit/(loss) for the year | ( | ) |
The above represent investments in private limited companies, Gandhi Wine Suppliers Limited and Mongoose Brewing Company Limited, at cost. As at the year end date, the directors have reviewed the investments held by the company and consider the value of its investment in Mongoose Brewing Company Limited to be impaired. The investment and any associated loans issued have therefore been written off to the income statement. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
13. | STOCKS |
30/4/24 | 30/4/23 |
£ | £ |
Finished goods |
14. | DEBTORS |
30/4/24 | 30/4/23 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by participating interests | - | 42,651 |
Amounts owed by associates |
Other debtors |
Tax |
Accrued income |
Prepayments |
Amounts falling due after more than one year: |
Amounts owed by participating interests | - | 99,000 |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30/4/24 | 30/4/23 |
£ | £ |
Trade creditors |
Tax |
PAYE |
Pension | 1,873 | 1,242 |
VAT | 21,112 | 1,594 |
Other creditors |
Directors' current accounts | - | 40,000 |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30/4/24 | 30/4/23 |
£ | £ |
Directors' loan accounts | - | 175,295 |
17. | LEASING AGREEMENTS |
At 30 April 2024 the company had annual commitments of £74,514 (2023- £74,030) under non-cancellable operating lease which expire within two to five years. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
18. | PROVISIONS FOR LIABILITIES |
30/4/24 | 30/4/23 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax on freehold |
revaluations | 434,121 | 434,121 |
442,847 | 445,899 |
Deferred tax |
£ |
Balance at 1 May 2023 |
Provided during year | ( | ) |
Balance at 30 April 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30/4/24 | 30/4/23 |
value: | £ | £ |
ordinary shares | £1 | 30,000 | 30,000 |
ordinary 'A' non voting | £1 | 220,000 | 220,000 |
250,000 | 250,000 |
20. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 8,317,912 |
Profit for the year |
Revaluation reserve | 13,709 | (13,709 | ) | - |
At 30 April 2024 | 8,616,526 |
Share capital |
This represents the nominal value of ordinary shares that have been issued by the company and which are classified as equity instruments. |
Revaluation reserve account |
This reserve represents the excess of the fair value to cost of freehold properties net of any deferred tax due on the revaluation and depreciation thereon. |
Profit and Loss account |
This reserve comprises all current and prior retained profits and losses after deducting any distributions made to the equity shareholders. |
GANDHI ORIENTAL FOODS LIMITED (REGISTERED NUMBER: 01034090) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
21. | RELATED PARTY DISCLOSURES |
The company is related to GOF Enterprises Limited by virtue of common directors. During the year the company paid expenses on behalf of GOF Enterprises Limited of £133 (2023: £Nil). As at the Statement of Financial Position date an amount of £133 (2023: £Nil) remains due to the company which is included within other debtors.This amount is unsecured, interest free and repayable on demand. |
In addition, during the year the directors' loan account credit balance of £215,295 was repaid in full to the directors. As at the Statement of Financial Position date an amount of £Nil remains due to the directors (2023: £215,295). The director's loan to the company was unsecured and interest free. £40,000 was repayable on demand and £175,295 was due after more than one year. These amounts are included in the comparative figures for the year ended 30 April 2023 within creditors: amounts falling due within one year and creditors: amounts falling due after more than one year, respectively. |
22. | ULTIMATE CONTROLLING PARTY |
The company is under control of the directors who are also the major shareholders. |
23. | FIRST YEAR ADOPTION |
These are the first financial statements that comply with FRS 102. The company transitioned from FRS 102 S1A to FRS 102 on 1 May 2022. No transitional adjustments were required. |