92 false false false false true false false false false false false true false false false false false false 2023-05-01 Sage Accounts Production Advanced 2023 - FRS102_2023 1,584,234 1,027,521 8,070 5,577 277 5,854 2,216 2,493 149,269 5,215 144,054 xbrli:pure xbrli:shares iso4217:GBP SC193287 2023-05-01 2024-04-30 SC193287 2024-04-30 SC193287 2023-04-30 SC193287 2022-05-01 2023-04-30 SC193287 2023-04-30 SC193287 2022-04-30 SC193287 core:PatentsTrademarksLicencesConcessionsSimilar 2023-05-01 2024-04-30 SC193287 core:PlantMachinery 2023-05-01 2024-04-30 SC193287 core:MotorVehicles 2023-05-01 2024-04-30 SC193287 bus:RegisteredOffice 2023-05-01 2024-04-30 SC193287 bus:OrdinaryShareClass1 2023-05-01 2024-04-30 SC193287 bus:LeadAgentIfApplicable 2023-05-01 2024-04-30 SC193287 bus:Director2 2023-05-01 2024-04-30 SC193287 bus:Director1 2023-05-01 2024-04-30 SC193287 core:WithinOneYear 2024-04-30 SC193287 core:WithinOneYear 2023-04-30 SC193287 core:PatentsTrademarksLicencesConcessionsSimilar 2023-04-30 SC193287 core:PatentsTrademarksLicencesConcessionsSimilar 2024-04-30 SC193287 core:LandBuildings core:LongLeaseholdAssets 2023-04-30 SC193287 core:PlantMachinery 2023-04-30 SC193287 core:MotorVehicles 2023-04-30 SC193287 core:LandBuildings core:LongLeaseholdAssets 2024-04-30 SC193287 core:PlantMachinery 2024-04-30 SC193287 core:MotorVehicles 2024-04-30 SC193287 core:LandBuildings core:LongLeaseholdAssets 2023-05-01 2024-04-30 SC193287 core:AfterOneYear 2024-04-30 SC193287 core:AfterOneYear 2023-04-30 SC193287 core:UKTax 2023-05-01 2024-04-30 SC193287 core:UKTax 2022-05-01 2023-04-30 SC193287 core:RetainedEarningsAccumulatedLosses 2023-04-30 SC193287 core:RetainedEarningsAccumulatedLosses 2022-04-30 SC193287 core:RetainedEarningsAccumulatedLosses 2024-04-30 SC193287 core:RetainedEarningsAccumulatedLosses 2023-04-30 SC193287 core:ShareCapital 2024-04-30 SC193287 core:ShareCapital 2023-04-30 SC193287 core:BetweenOneFiveYears 2024-04-30 SC193287 core:BetweenOneFiveYears 2023-04-30 SC193287 core:PatentsTrademarksLicencesConcessionsSimilar 2023-04-30 SC193287 core:AcceleratedTaxDepreciationDeferredTax 2024-04-30 SC193287 core:AcceleratedTaxDepreciationDeferredTax 2023-04-30 SC193287 core:LandBuildings core:LongLeaseholdAssets 2023-04-30 SC193287 core:PlantMachinery 2023-04-30 SC193287 core:MotorVehicles 2023-04-30 SC193287 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2024-04-30 SC193287 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2023-04-30 SC193287 core:DeferredTaxation 2023-04-30 SC193287 core:DeferredTaxation 2024-04-30 SC193287 core:DeferredTaxation 2023-05-01 2024-04-30 SC193287 bus:LeadAgentIfApplicable 2022-05-01 2023-04-30 SC193287 bus:Director2 2023-04-30 SC193287 bus:Director2 2024-04-30 SC193287 bus:Director2 2022-04-30 SC193287 bus:Director2 2023-04-30 SC193287 bus:Director2 2022-05-01 2023-04-30 SC193287 bus:MediumEntities 2023-05-01 2024-04-30 SC193287 bus:Audited 2023-05-01 2024-04-30 SC193287 bus:Medium-sizedCompaniesRegimeForAccounts 2023-05-01 2024-04-30 SC193287 bus:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 SC193287 bus:FullAccounts 2023-05-01 2024-04-30 SC193287 bus:OrdinaryShareClass1 2024-04-30 SC193287 bus:OrdinaryShareClass1 2023-04-30 SC193287 core:FurnitureFittingsToolsEquipment 2023-05-01 2024-04-30 SC193287 core:FurnitureFittingsToolsEquipment 2023-04-30 SC193287 core:FurnitureFittingsToolsEquipment 2024-04-30 SC193287 core:EntityControlledByKeyManagementPersonnel1 2023-05-01 2024-04-30 SC193287 core:EntityControlledByKeyManagementPersonnel1 2024-04-30
COMPANY REGISTRATION NUMBER: SC193287
Nisha Enterprises Ltd
Financial Statements
30 April 2024
Nisha Enterprises Ltd
Financial Statements
Year ended 30 April 2024
Contents
Pages
Strategic report
1 to 2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 8
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12 to 23
Nisha Enterprises Ltd
Strategic Report
Year ended 30 April 2024
Review of the Business Nisha Enterprises has experienced a successful year in 2024, marked by positive developments across its operations. The company reported a modest yet meaningful increase in turnover, reflecting strong market demand and effective strategies to cater to customer needs. This growth underscores Nisha Enterprises' ability to adapt to changing market conditions while maintaining a focus on quality and innovation. By leveraging operational efficiencies and enhancing their service offerings, the company has reinforced its reputation as a reliable and forward-thinking player in its industry. In addition to the rise in turnover, Nisha Enterprises also saw an improvement in profit margins. This incremental growth highlights their commitment to cost management and sustainable business practices. The success of 2024 serves as a testament to the hard work of the team and the company's strategic vision. As Nisha Enterprises continues to build on this momentum, they are well-positioned to achieve even greater milestones in the years to come and continue their success in the industry.
Principal Risks The principal risks and uncertainties considered to be affecting the business are referred to below: Sales Volume Nisha Enterprises faces the ongoing risk of losing larger customers, such as supermarkets, due to the competitive nature of pricing and supplier agreements in the industry. Additionally, increased competition from other manufacturers poses a challenge, as rivals continually seek to capture market share through aggressive pricing or innovative products. These risks highlight the need for Nisha Enterprises to maintain strong relationships with key clients and differentiate itself through quality, reliability, and value-added services to stay ahead in a crowded marketplace. Partial Outsourced Distribution Nisha Enterprises continues to rely on a trusted third-party logistics provider due to their proven reliability. However, any failure on the provider's part could directly affect customer confidence in the company. Retention of Employees Staff retention remains a critical priority for a growing organisation, as the loss of employees can impact both productivity and overall performance. Thanks to increased turnover, the company has been able to expand its team by hiring new employees and bringing in temporary staff during peak periods to meet demand effectively. Health & Safety The directors and managers actively monitor industry developments and legislative changes, both internal and external, to ensure the company remains current and compliant within the industry. Credit Risk Debtor reports are routinely reviewed to identify overdue amounts, and customers are contacted as needed to arrange payment. For customers who are slower to settle debts, the director requires payment of 50% of the outstanding balance before processing any new orders.
Future Developments Looking ahead, Nisha Enterprises is excited to announce plans for future development with the addition of a new extruder line. This investment is a significant step forward in expanding the company's production capabilities and diversifying its product range. The new extruder line reflects the company's commitment to growth and adaptability in an evolving marketplace. It not only supports the goal of staying competitive but also highlights a focus on delivering high-quality, value-driven products. This development is expected to enhance operational efficiency and open doors to new market segments, setting the stage for sustained success. With this initiative, Nisha Enterprises is poised to continue driving progress while maintaining its dedication to customer satisfaction and industry excellence.
Key Performance Indicators The directors monitor the company's progress by reference to certain KPI's. Performance during the year, together with historical trend data is set out below:-
2024 2023
£ £
Total Turnover 13,303,040 11,391,181
GP margin % 35 31
EBITDA 2,475,843 1,693,549
Operating Profit 2,110,115 1,283,144
Profit before tax 2,131,993 1,275,678
Profit after tax 1,584,234 1,027,521
Debtor days 48 66
Turnover has increased on the previous year. Net Assets have increased by £1,584,234.
This report was approved by the board of directors on 27 January 2025 and signed on behalf of the board by:
S. Pahuja
Director
Registered office:
5a Grange Road
Houston Industrial Estate
Livingston
EH54 5DE
Nisha Enterprises Ltd
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Principal activities
The principal activity of the company during the year was the wholesale manufacture and distribution of snacks, confectionery and dried fruit
Directors
The directors who served the company during the year were as follows:
R. Pahuja
S. Pahuja
Dividends
No dividends were recommended at the year end.
Future developments
Details are given in the strategic report.
Disclosure of information in the strategic report.
The company has chosen to disclose information required by Schedule 7 of the Large & Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 in the Strategic Report in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013.
Financial instruments
All financial instruments are basic financial instruments.
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; - 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 reappointed in accordance with Section 487 of the Companies Act 2006.
This report was approved by the board of directors on 27 January 2025 and signed on behalf of the board by:
S. Pahuja
Director
Registered office:
5a Grange Road
Houston Industrial Estate
Livingston
EH54 5DE
Nisha Enterprises Ltd
Independent Auditor's Report to the Members of Nisha Enterprises Ltd
Year ended 30 April 2024
Opinion
We have audited the financial statements of Nisha Enterprises Ltd (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 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; - 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 have 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of 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 relevant 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: We identified the laws and regulations applicable to the Company through discussions with management. We gained an understanding on the laws and regulations relevant to the company focusing on specific laws and regulations which may have a direct effect on the financial statements or the operations of the company. The main relevant frameworks we identified were: UK GAAP Companies Act 2006 Corporation tax legislation Food hygiene regulations Health & safety regulations We reviewed relevant correspondence with regulatory bodies and reviewed external inspection reports. We determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management. We assessed the susceptibility of the financial statements to material misstatement, including an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual movements - assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias - reviewed and tested journal entries to identify any unusual transactions - identified related parties In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - setting a level of materiality at the planning stage including the basis for determining this - agreeing financial statement disclosures to supporting documentation - enquiring of management as to any actual or potential litigation and claims as well as actual and suspected fraud Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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/Auditorsresponsibiities. This description forms part of our auditor's report.
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.
Walter Raymond Paterson
(Senior Statutory Auditor)
For and on behalf of
McDonald Gordon & Co Ltd
Chartered Certified Accountants & statutory auditor
29 York Place, Edinburgh, EH1 3HP
28 January 2025
Nisha Enterprises Ltd
Statement of Income and Retained Earnings
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
13,303,040
11,391,181
Cost of sales
8,634,472
7,899,294
-------------
-------------
Gross profit
4,668,568
3,491,887
Distribution costs
436,439
370,594
Administrative expenses
2,122,014
1,838,149
------------
------------
Operating profit
5
2,110,115
1,283,144
Other interest receivable and similar income
9
38,566
9,576
Interest payable and similar expenses
16,688
17,042
------------
------------
Profit before taxation
2,131,993
1,275,678
Tax on profit
11
547,759
248,157
------------
------------
Profit for the financial year and total comprehensive income
1,584,234
1,027,521
------------
------------
Retained earnings at the start of the year
10,097,476
9,069,955
-------------
-------------
Retained earnings at the end of the year
11,681,710
10,097,476
-------------
-------------
All the activities of the company are from continuing operations.
Nisha Enterprises Ltd
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
12
2,216
2,493
Tangible assets
13
1,165,885
1,333,643
------------
------------
1,168,101
1,336,136
Current assets
Stocks
14
1,312,616
1,108,215
Debtors
15
8,110,298
8,142,430
Cash at bank and in hand
3,206,450
1,306,579
-------------
-------------
12,629,364
10,557,224
Creditors: amounts falling due within one year
16
1,744,057
1,401,578
-------------
-------------
Net current assets
10,885,307
9,155,646
-------------
-------------
Total assets less current liabilities
12,053,408
10,491,782
Creditors: amounts falling due after more than one year
17
227,642
245,035
Provisions
19
144,054
149,269
-------------
-------------
Net assets
11,681,712
10,097,478
-------------
-------------
Capital and reserves
Called up share capital
23
2
2
Profit and loss account
11,681,710
10,097,476
-------------
-------------
Shareholders funds
11,681,712
10,097,478
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 27 January 2025 , and are signed on behalf of the board by:
S. Pahuja
Director
Company registration number: SC193287
Nisha Enterprises Ltd
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,584,234
1,027,521
Adjustments for:
Depreciation of tangible assets
365,451
410,539
Amortisation of intangible assets
277
277
Other interest receivable and similar income
( 38,566)
( 9,576)
Interest payable and similar expenses
16,688
17,042
Gains on disposal of tangible assets
( 411)
Tax on profit
547,759
248,157
Accrued expenses
37,917
Accrued income/expenses
23,680
Changes in:
Stocks
( 204,401)
( 132,316)
Trade and other debtors
32,132
( 895,547)
Trade and other creditors
31,268
326,647
------------
------------
Cash generated from operations
2,372,759
1,016,013
Interest paid
( 16,688)
( 17,042)
Interest received
38,566
9,576
Tax paid
( 262,435)
( 92,626)
------------
------------
Net cash from operating activities
2,132,202
915,921
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 197,693)
( 166,087)
Proceeds from sale of tangible assets
1,000
Purchase of intangible assets
( 2,770)
Cash advances and loans granted
( 2,925,000)
------------
------------
Net cash used in investing activities
( 197,693)
( 3,092,857)
------------
------------
Cash flows from financing activities
Repayments of borrowings
( 16,559)
( 13,615)
Payments of finance lease liabilities
( 18,079)
( 53,066)
------------
------------
Net cash used in financing activities
( 34,638)
( 66,681)
------------
------------
Net increase/(decrease) in cash and cash equivalents
1,899,871
( 2,243,617)
Cash and cash equivalents at beginning of year
1,306,579
3,550,196
------------
------------
Cash and cash equivalents at end of year
3,206,450
1,306,579
------------
------------
Cash and cash equivalents
2024 2023
£ £
Cash at bank and on hand 3,206,450 1,306,579
------------ ------------
Nisha Enterprises Ltd
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, incorporated and registered in Scotland ( SC193287 ). The address of the registered office is 5a Grange Road, Houston Industrial Estate, Livingston, EH54 5DE.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention and relate to the individual entity. The financial statements relate to the individual company and are prepared in sterling, which is the functional currency of the entity, rounded to the nearest £1.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period to which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods . The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year include:- - Manufactured stock - Depreciation The carrying values of the assets to which the estimations have been applied are: Tangible fixed assets £1,165,885 Ready and manufactured stock £415,605
Revenue recognition
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.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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 the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
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:
Patents, trademarks and licences
-
10% straight line
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 subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
Factory Improvements
-
Straight line over 10 years
Plant and machinery
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Equipment, fixtures & fittings
-
15% reducing balance
Impairment of fixed assets
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.
Stocks
Stock is valued at the lower of estimated selling price less cost to complete. Cost of manufactured goods include labour and attributable overheads. Cost of goods acquired for resale and raw materials is computed on a first in first out basis. Provision is made for damaged, obsolete and slow moving stock where appropriate.
Finance leases and hire purchase contracts
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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 statement of financial position and the amount of the provision as an expense.
Financial instruments
A financial asset or a financial liability is recognised only when the entity 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. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and in hand includes cash and short term highly liquid investments. Creditors are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due .
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.
4. Turnover
Turnover arises from
2024 2023
£ £
Sale of goods 13,303,040 11,391,181
------------- -------------
An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024 2023
£ £
UK 13,238,600 11,274,520
Europe 64,440 116,661
------------- -------------
13,303,040 11,391,181
------------- -------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
277
277
Depreciation of tangible assets
365,451
410,539
Gains on disposal of tangible assets
( 411)
Impairment of trade debtors
3,287
(15,556)
Operating lease rentals
143,905
145,707
Foreign exchange differences
( 1,959)
7,543
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
10,000
7,150
--------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
68
58
Administrative staff
9
7
Management staff
2
2
Sales
13
15
----
----
92
82
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,018,704
1,687,060
Social security costs
162,785
132,697
Other pension costs
138,592
33,743
------------
------------
2,320,081
1,853,500
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
32,200
27,360
Company contributions to defined contribution pension plans
100,966
823
---------
--------
133,166
28,183
---------
--------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Key management personnel are solely the directors.
9. Other interest receivable and similar income
2024
2023
£
£
Interest on bank deposits
38,566
9,576
--------
-------
10. Interest payable
2024
2023
£
£
Total interest expense on financial liabilities not measured at fair value through the profit & loss
16,688
17,042
--------
--------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
552,810
268,342
Adjustments in respect of prior periods
164
---------
---------
Total current tax
552,974
268,342
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 5,215)
( 20,185)
---------
---------
Tax on profit
547,759
248,157
---------
---------
The rate of corporation tax increased from 19% to 25% for the period after 31 March 2023.
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19.49 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,131,993
1,275,678
------------
------------
Profit on ordinary activities by rate of tax
532,999
248,668
Adjustment to tax charge in respect of prior periods
164
Effect of expenses not deductible for tax purposes
802
1,805
Effect of capital allowances and depreciation
13,795
( 2,237)
Effect of revenue exempt from tax
( 80)
Rounding on tax charge
( 1)
1
------------
------------
Tax on profit
547,759
248,157
------------
------------
12. Intangible assets
Patents, trademarks and licences
£
Cost
At 1 May 2023 and 30 April 2024
8,070
-------
Amortisation
At 1 May 2023
5,577
Charge for the year
277
-------
At 30 April 2024
5,854
-------
Carrying amount
At 30 April 2024
2,216
-------
At 30 April 2023
2,493
-------
All additions to intangible assets were externally acquired. Amortisation is included within administrative expenses in the Statement of Income and Retained Earnings.
13. Tangible assets
Improve-ments to factories
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 May 2023
611,914
5,461,435
216,440
116,487
6,406,276
Additions
176,720
20,973
197,693
---------
------------
---------
---------
------------
At 30 April 2024
611,914
5,638,155
216,440
137,460
6,603,969
---------
------------
---------
---------
------------
Depreciation
At 1 May 2023
347,412
4,511,973
141,581
71,667
5,072,633
Charge for the year
55,297
281,568
18,714
9,872
365,451
---------
------------
---------
---------
------------
At 30 April 2024
402,709
4,793,541
160,295
81,539
5,438,084
---------
------------
---------
---------
------------
Carrying amount
At 30 April 2024
209,205
844,614
56,145
55,921
1,165,885
---------
------------
---------
---------
------------
At 30 April 2023
264,502
949,462
74,859
44,820
1,333,643
---------
------------
---------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 30 April 2024
10,256
--------
At 30 April 2023
39,337
--------
14. Stocks
2024
2023
£
£
Raw materials and consumables
1,306,390
1,101,969
Work in progress
6,226
6,246
------------
------------
1,312,616
1,108,215
------------
------------
15. Debtors
2024
2023
£
£
Trade debtors
2,124,871
2,415,380
Prepayments and accrued income
318,090
72,989
Directors loan account
76,551
75,951
Other debtors
5,590,786
5,578,110
------------
------------
8,110,298
8,142,430
------------
------------
Other debtors
2024 2023
£ £
Amounts due by related parties 5,543,359 5,543,359
Other 24,210 11,534
Corporation tax repayable 23,217 23,217
------------ ------------
5,590,786 5,578,110
------------ ------------
The debtors above include the following amounts falling due after more than one year
2024 2023
£ £
Corporation tax repayable 23,217 23,217
-------- --------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
14,824
13,990
Trade creditors
531,177
563,128
Accruals and deferred income
167,570
129,653
Corporation tax
553,451
262,912
Social security and other taxes
436,719
398,633
Obligations under finance leases and hire purchase contracts
5,575
23,654
Other creditors
34,741
9,608
------------
------------
1,744,057
1,401,578
------------
------------
2024 2023
£ £
Secured creditors 20,399 37,644
-------- --------
The Royal Bank of Scotland plc hold a bond and floating charge over all assets of the company in respect of all sums due. A cross guarantee of £727,187 exists with Nisha Partnership, a firm in which the directors are also partners. A further cross guarantee of £644,902 exists with Three Sisters (Edinburgh) Ltd, the directors of Nisha Enterprises Ltd are also directors of Three Sisters (Edinburgh) Ltd
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
227,642
245,035
---------
---------
2024
2023
£
£
Secured creditors
227,642
245,035
---------
---------
Bank loans include £nil (2023 £185,108) which fall due after five years payable by instalments. The loan was repaid in May 2024. Interest is charged at 2.25% over Bank of England base rate.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
5,575
23,654
-------
--------
2024 2023
£ £
Present value of minimum lease payments 5,575 23,654
------- --------
19. Provisions
Deferred tax (note 20)
£
At 1 May 2023
149,269
Unused amounts reversed
( 5,215)
---------
At 30 April 2024
144,054
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
144,054
149,269
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
144,054
149,269
---------
---------
A net reversal of deferred tax liabilities is expected to occur during the succeeding period, as the value of depreciation of existing assets exceeds purchases of new assets.
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 138,592 (2023: £ 33,743 ).
22. Financial instruments
All financial instruments are basic financial instruments. All basic financial assets and financial liabilities are initially measured at the transaction price. Financial assets measured at amortised cost consist of trade debtors, cash and cash equivalents, other debtors and accrued income. Financial liabilities measured at amortised cost consist of trade and other creditors and accruals. Impairment of trade debtors totalled £3,287 (2023 £nil) as referred to in note 5.
23. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
2
2
2
2
----
----
----
----
24. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
1,306,579
1,899,871
3,206,450
Debt due within one year
(37,644)
17,245
(20,399)
Debt due after one year
(245,035)
17,393
(227,642)
------------
------------
------------
1,023,900
1,934,509
2,958,409
------------
------------
------------
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
143,675
143,200
Later than 1 year and not later than 5 years
270
2,160
---------
---------
143,945
145,360
---------
---------
The company has entered into a lease of not more than 12 months for the operating premises which are let to it by a related partnership.
26. Contingencies
A contingent liability exists relating to a cross guarantee of £727,187 with Nisha Partnership and £644,902 with Three Sisters (Edinburgh) Ltd.
27. 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
Balance outstanding
£
£
£
S. Pahuja
75,951
600
76,551
--------
----
--------
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
S. Pahuja
71,440
4,511
75,951
--------
-------
--------
This loan is interest free is repayable on demand. The cross guarantee on behalf of Nisha Partnership (note 25) is effectively a guarantee on behalf of the directors.
Nisha Enterprises Ltd
Notes to the Financial Statements (continued)
Year ended 30 April 2024
28. Related party transactions
Included in debtors at 30 April 2024 is a loan to a partnership controlled by the directors of £ 1,522,481 (2023 £1,522,481), who also hold a controlling shareholding in Nisha Enterprises Ltd . This loan is interest free and repayable on demand. During the year the partnership invoiced Nisha Enterprises Ltd £140,000 in respect of rent (2023 £140,000). There is a cross guarantee with the partnership - see Note 26. Also included within debtors due within one year is a loan of £4,020,878 (2023 £4,020,878) due by another company controlled by the directors. This loan is interest free and repayable on demand. There is also a cross guarantee with this company (see note 26).
29. Controlling party
The company is controlled by the directors S. Pahuja and R. Pahuja .