Registered number
04195071
Rai Fashions Limited
Filleted Accounts
30 April 2024
Rai Fashions Limited
Registered number: 04195071
Balance Sheet
as at 30 April 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 3 14,808,100 14,853,574
Current assets
Stocks 875,566 875,566
Debtors 4 522,028 37,400
Cash at bank and in hand 17,240 26,791
1,414,834 939,757
Creditors: amounts falling due within one year 5 (6,738,752) (6,307,561)
Net current liabilities (5,323,918) (5,367,804)
Total assets less current liabilities 9,484,182 9,485,770
Creditors: amounts falling due after more than one year 6 (195,909) (860,134)
Provisions for liabilities (38,951) (38,951)
Net assets 9,249,322 8,586,685
Capital and reserves
Called up share capital 100 100
Profit and loss account 9,249,222 8,586,585
Shareholders' funds 9,249,322 8,586,685
The director is satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr T. Singh
Director
Approved by the board on 31 January 2025
Rai Fashions Limited
Notes to the Accounts
for the year ended 30 April 2024
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings Nil
Leasehold land and buildings over the lease term
Plant and machinery over 5 years
Commercial vehicles over 4 years
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 26 26
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 May 2023 14,648,568 880,175 176,522 15,705,265
Additions 45,360 1,157 - 46,517
At 30 April 2024 14,693,928 881,332 176,522 15,751,782
Depreciation
At 1 May 2023 - 675,169 176,522 851,691
Charge for the year - 91,991 - 91,991
At 30 April 2024 - 767,160 176,522 943,682
Net book value
At 30 April 2024 14,693,928 114,172 - 14,808,100
At 30 April 2023 14,648,568 205,006 - 14,853,574
4 Debtors 2024 2023
£ £
Other debtors 522,028 37,400
5 Creditors: amounts falling due within one year 2024 2023
£ £
Trade creditors 886,209 499,248
Amounts owed to group undertakings and undertakings in which the company has a participating interest 5,400,559 4,687,031
Corporation tax 183,301 439,298
Other taxes and social security costs 46,265 67,381
Director's current account 209,842 600,731
Other creditors 12,576 13,872
6,738,752 6,307,561
6 Creditors: amounts falling due after one year 2024 2023
£ £
Bank loans 195,909 860,134
7 Loans 2024 2023
£ £
Creditors include:
Secured bank loans 195,909 1,097,903
Bank loans, note 6, are secured on the assets of the company.
8 Transactions with the director
Included within creditors are loans received from Mr T. Singh, the director. The outstanding amounts are as follows: beginning of the year £600,731; end of the year £209,842; maximum during the year £600,731.
9 Related party transactions 2024 2023
£ £
KD & Jay Ltd
Mr T. Singh, the director, Mrs S. Rai, the directors wife and Mr J. Singh, the director and Mrs K. Kaur, own 100% of the issued share capital and voting rights of both Rai Fashions Limited T/A J Mart and KD & Jay Ltd, equally.
Intercompany loans
Amount due to the related party 5,400,559 4,687,031
During the year Rai Fashions Limited charged the company £Nil (2022 £Nil) management fees, at arms length to cover additional administration, staff costs and to reduce financial exposure to the company. During the company purchased stock from KD & Jay Limited, at arms length, of £575,000.
The director is satisfied that the company is exempt from the requirement to prepare group accounts under section 399 of the Companies Act 2006 as such consolidated accounts have not been prepared.
10 Controlling party
The company was under the control of Mr T. Singh, the director, Mrs S. Rai, the directors wife, Mr J. Singh, the director and Mrs K. Kaur, the director's mother, who own 100% of the issued share capital
11 Other information
Rai Fashions Limited is a private company limited by shares and incorporated in England. Its registered office is:
118 Widemarsh Street
Hereford
HR4 9HN
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