L M MANUFACTURING LIMITED |
Notes to the Accounts |
for the period from 7 November 2023 to 31 March 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). |
|
|
Changes in the accounting reference dates |
|
During the year, the company changed its accounting reference date from 6 Novemeber to 31 March. As a result, the current financial statements cover a 5-month period from 7 November 2023 to 31 March 2024. The comparative figures cover a 10-month period from 1 January 2023 to 6 November 2023. |
|
|
Going concern |
|
The financial statements have been prepared on a going concern basis. The company has a net liability position as of the balance sheet date. However, the directors have received a letter of support from the parent company, which confirms that the parent will provide the necessary financial support to enable the company to meet its obligations as they fall due for at least the next 12 months from the date of approval of these financial statements. Based on this support, the directors believe that it is appropriate to prepare the financial statements on a going concern basis. |
|
|
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. |
|
|
Research and development |
|
Research and development expenditure is written off to the profit and loss account in the year in which it is incurred. |
|
|
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 |
4% straight line |
|
Fixture and fittings |
25% reducing balance |
|
Plant and machinery |
25% reducing balance |
|
|
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. 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. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
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. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
2 |
Audit information |
|
|
The audit report is unqualified. |
|
|
Senior statutory auditor: |
Devender Arora ACA |
|
Firm: |
The Corporate Practice Limited |
|
Date of audit report: |
19 February 2025 |
|
|
3 |
Employees |
2024 |
|
2023 |
Number |
Number |
|
|
Average number of persons employed by the company |
95 |
|
93 |
|
|
|
|
|
|
|
|
|
|
4 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Plant and machinery etc |
|
Total |
£ |
£ |
£ |
|
Cost |
|
At 7 November 2023 |
2,247,435 |
|
4,769,836 |
|
7,017,271 |
|
Additions |
- |
|
292,882 |
|
292,882 |
|
At 31 March 2024 |
2,247,435 |
|
5,062,718 |
|
7,310,153 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 7 November 2023 |
541,853 |
|
4,008,885 |
|
4,550,738 |
|
Charge for the period |
29,229 |
|
109,774 |
|
139,003 |
|
At 31 March 2024 |
571,082 |
|
4,118,659 |
|
4,689,741 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 March 2024 |
1,676,353 |
|
944,059 |
|
2,620,412 |
|
At 6 November 2023 |
1,705,582 |
|
760,951 |
|
2,466,533 |
|
|
5 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
|
Cost |
|
At 7 November 2023 |
5,965 |
|
|
At 31 March 2024 |
5,965 |
|
|
There was no movement in fixed assets investments during the period. |
|
|
Above investments comprise of investments in the below listed entity: |
|
|
Company |
|
|
Country |
|
Share class |
|
% of capital |
|
LM Manufacturing India Privated Limited |
|
|
India |
|
Ordinary |
|
98.80 |
|
|
6 |
Debtors |
2024 |
|
2023 |
£ |
£ |
|
|
Trade debtors |
699,438 |
|
2,058,929 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
419,007 |
|
727 |
|
Deferred tax asset |
|
|
|
|
3,686,645 |
|
- |
|
Other debtors |
148,591 |
|
1,033,681 |
|
Prepayments and accrued income |
94,166 |
|
- |
|
|
|
|
|
|
5,047,847 |
|
3,093,337 |
|
|
|
|
|
|
|
|
|
|
7 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
|
Bank loans and overdrafts |
- |
|
- |
|
Trade creditors |
651,931 |
|
517,910 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
17,189,937 |
|
- |
|
Taxation and social security costs |
904,689 |
|
1,918,480 |
|
Other creditors |
416,937 |
|
16,699,408 |
|
|
|
|
|
|
19,163,494 |
|
19,135,798 |
|
|
|
|
|
|
|
|
|
|
8 |
Events after the reporting date |
|
|
The directors confirm that there have been no significant events occurring after the balance sheet date that would require adjustment or disclosure in the financial statements. |
|
|
9 |
Related party transactions |
|
|
In accordance with Financial Reporting Standard 102 (FRS 102), the company has disclosed all related party transactions. Transactions with wholly-owned group members have been exempted from disclosure as permitted by paragraph 33.1A of FRS 102. Other related party transactions include: |
|
|
|
Oncosol Limited |
2024 |
|
2023 |
£ |
£ |
|
Participating interest |
|
Included within creditors is an amount payable to Oncosol Limited of: |
|
12,377 |
|
1,924 |
|
|
L M Manufacturing India Private Limited - a company incorporated in India |
|
Subsidiary |
|
Included within amount receivable from group undertakings is an amount receivable from L M Manufacturing India Private Limited of: |
|
- |
|
126,500 |
|
Included within amount receivable from group undertakings is an amount receivable from L M Manufacturing India Private Limited of: |
|
727 |
|
727 |
|
|
10 |
Controlling party |
|
|
Zydus Pharmaceuticals UK Limited is the controlling party. |
|
|
11 |
Other information |
|
|
L M MANUFACTURING LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
|
Sandretto Building |
|
Cavalry Hill Industrial Park |
|
Weedon |
|
Northampton |
|
NN7 4PP |