REGISTERED NUMBER: |
JANDU DEVELOPMENTS LIMITED |
T/A |
J S MARKETING |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
REGISTERED NUMBER: |
JANDU DEVELOPMENTS LIMITED |
T/A |
J S MARKETING |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
JANDU DEVELOPMENTS LIMITED |
T/A J S MARKETING |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
For and behalf of Shah & Co (Accountants) Ltd |
Chartered Accountants & Statutory Auditors |
Cash's Business Centre |
1st Floor |
228 Widdrington Road |
Coventry |
West Midlands |
CV1 4PB |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their strategic report for the year ended 31 May 2024. |
REVIEW OF BUSINESS |
The principal activity of the company in the year under review was that of the wholesale distributor of menswear clothing, textiles, garments and materials. |
The company's financial results for the year and financial position are shown in the annexed financial statements. |
The company continued to show business resilience throughout the year in the presence of ongoing challenging trading conditions faced by retail companies operating in the clothing industry. Despite experiencing a decline in turnover due to industry-specific challenges such as shifting consumer preferences, rising material and production costs, and increasing competition, the company maintains a healthy financial position, with its bottom line remaining robust and positive. This is attributed to its strategic approach in reducing operational costs while continuing to focus on smart investments that contribute to long-term growth and sustainability. |
BUSINESS STRATEGY |
The company operates in a highly competitive market where its success is largely dependent upon the growth of the retail clothing industry within the United Kingdom. |
The directors strategy focuses mainly on sourcing high-quality clothing products, building strong relationships with manufacturers and suppliers, and expanding its customer base. |
KEY PERFORMANCE INDICATORS |
The directors consider the most appropriate key performance indicators to be Turnover, Gross Profit, Operating Profit and Liquidity. The results of these key performance indicators for the year were as follows: |
2024 | 2023 |
Turnover | £5.4m | £12.7m |
Gross profit | £1.2m | £3.3m |
Operating profit | £0.9m | £2.6m |
Cash at bank | £6.7m | £4.4m |
Gross profit margin for the year was 22.3% (2023: 25.8%) |
Operating profit margin for the year was 16.7% (2023: 20.2%). |
Current ratio (measured as current assets divided by current liabilities) for the year was 3.0 (2023: 2.3) |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are various risks and uncertainties affecting the business some of which are inherent to the industry in which the company operates such as increasing competition in the manufacture of clothing in low cost countries. The company manages this risk by maintaining high standard of quality products, delivered to customers on time and at competitive pricing. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise of trade debtors, trade creditors, cash deposits and investments. The company manages its risks in relation to these as follows: |
Liquidity risk |
Liquidity risk is low due to the company's ability in maintaining strong cash flow. The company manages its cash and borrowing requirements so as to maximise interest income and minimise interest expense whilst ensuring that it has sufficient liquid resources to meet the daily operating needs of the business. There are no external borrowing requirements and therefore no financial covenants imposed on the company. |
Fixed and current asset investments are managed externally by professional and qualified investment managers who provide the directors with relevant information. |
Credit risk |
Customers are predominantly high street retail shops. They are provided with credit and encouraged to settle invoices usually within 60 days, from the inception of raising sales invoices, however, certain customers are given favourable payment terms based on their creditworthiness. Monies due are monitored on a on-going basis and chased as part of the company credit control procedures. Debtor days for the year ended 31 May 2024 was 9 days (2023: 72 days). |
Price risk |
Price charged for sale of manufactured garments is determined by the customer at the outset. Price risk could impact the company's business through rising overheads. This risk is reduced by the company's aim to maximise profit margins by purchasing quality fabric and related materials at discounted prices and outsourcing the production of sales orders to reliable manufacturers whilst meeting customer requirements in delivering quality products on a timely manner. |
Exchange rate risk |
The company conducts business with overseas customers and suppliers. Therefore it buys foreign currencies as and when required. The company does not enter into any hedging transactions. |
Regulatory risk |
The company does not operate in a regulated environment and therefore does not have material exposure to regulatory risks. However, the directors have created a reputation based on their strengths of quality, price, flexibility and fast response. |
Internal control risk |
The directors monitor the system of internal controls both financial and non financial. These include quality control inspection procedures before the finished products are delivered to its customers and controls designated to ensure proper accounting records are maintained. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
FUTURE DEVELOPMENTS |
Despite the challenges presented by the wider economic climate, the directors also hope to maximise growth as and when opportunities arise and show improvements in key performance indicators. |
ON BEHALF OF THE BOARD: |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the wholesale distributor of clothing, textiles, garments and materials. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2024. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with Section 414C(11) of the Companies Act 2006, the Directors have set out certain information in the Strategic Report which would otherwise be required by Schedule 7 to be contained in the Report of the Directors. It has done so in respect of future developments, principal risks and uncertainties and financial instruments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
AUDITORS |
The auditors, Harendra Kishorlal Shah (FCCA) (Senior Auditor), 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 |
JANDU DEVELOPMENTS LIMITED |
Opinion |
We have audited the financial statements of Jandu Developments Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 May 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 |
JANDU DEVELOPMENTS 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 Statement of Directors' Responsibilities set out on page five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JANDU DEVELOPMENTS LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud and other irregularities rests with both management and those charged with governance of the company. |
Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations relates to relevant trade accreditation and supplier approval certifications, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements of the company and determined that the most significant are those that relate to the United Kingdom Generally Accepted Accounting Practice, Companies Act 2006 and UK corporate taxation laws. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to revenue recognition, posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Audit procedures performed included: |
- Discussions with those charged with governance including consideration of known or suspected instances of |
non-compliance with laws and regulation and fraud; |
- Review of relevant and valid trade accreditation and supplier approval certifications; |
- Review of correspondence between the company and tax authorities; |
- Carry out testing, on a sample basis, on the company's main income and expenditure cycle and consider the |
impact on our assessment of irregularities; |
- Identify and understand related party relationships and transactions including rationale for any significant |
transactions outside the normal course of business; |
- Identify and test significant journal entries throughout the year and at the year-end; |
- Review of financial statement disclosures to underlying supporting documentation; |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 |
JANDU DEVELOPMENTS 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 |
For and behalf of Shah & Co (Accountants) Ltd |
Chartered Accountants & Statutory Auditors |
Cash's Business Centre |
1st Floor |
228 Widdrington Road |
Coventry |
West Midlands |
CV1 4PB |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MAY 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
178,210 | 2,077,475 |
Other operating income |
OPERATING PROFIT |
Income from fixed asset investments |
Interest receivable and similar income |
1,067,963 | 2,666,155 |
Gain/loss on revaluation of |
investments | 301,431 | 79,414 |
1,369,394 | 2,745,569 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION | 6 |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
BALANCE SHEET |
31 MAY 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
Investment properties | 10 |
CURRENT ASSETS |
Debtors | 11 |
Investments | 12 |
Cash at bank | 13 |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Fair value reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2024 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Total comprehensive income | - |
Transfer | - | (59,561 | ) | 59,561 | - |
Balance at 31 May 2023 |
Changes in equity |
Total comprehensive income | - |
Transfer | - | (226,073 | ) | 226,073 | - |
Balance at 31 May 2024 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Government grants | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of fixed asset investments | - | (58,465 | ) |
Purchase of investment property | ( |
) |
Sale of fixed asset investments |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 176 | 205,817 |
Amount withdrawn by directors | (875 | ) | (205,817 | ) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
6,794,912 |
Cash and cash equivalents at end of year | 2 | 6,699,446 | 4,411,998 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | (301,431 | ) | (79,414 | ) |
Government grants |
Finance costs | 5,039 | 372 |
Finance income | (169,183 | ) | (102,242 | ) |
1,015,863 | 2,637,065 |
Decrease in stocks |
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 Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31/5/24 | 1/6/23 |
£ | £ |
Cash and cash equivalents | 6,699,446 | 4,411,998 |
Year ended 31 May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 4,411,998 | 6,794,912 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/6/23 | Cash flow | At 31/5/24 |
£ | £ | £ |
Net cash |
Cash at bank | 4,411,998 | 2,287,448 | 6,699,446 |
4,411,998 | 6,699,446 |
Liquid resources |
Current asset investments | 444,864 | 30,596 | 475,460 |
444,864 | 30,596 | 475,460 |
Total | 4,856,862 | 2,318,044 | 7,174,906 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
Jandu Developments Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the balance sheet date, the company is in a net asset position, which supports its ability to continue as a going concern. The directors have prepared financial projections which, on the basis of reasonable assumptions, the company can meet its liabilities as and when they fall due for a period of at least twelve months from the date of signing these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
It is the company's policy to recognise turnover when goods are despatched to the customer, that is, when substantially all the risks and rewards in connection with the goods have been passed to the buyer. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. |
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Freehold property | - 2% on cost |
Improvements to property | - 10% on cost |
Plant and machinery | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Office furniture | - 15% on reducing balance |
Office equipment | - 33% on reducing balance |
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates. |
Government grants |
Government grants are recognised where there is reasonable assurance that the grant will be received and |
all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as |
income on a systematic basis over the periods that the related costs, for which it is intended to compensate, |
are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the |
expected useful life of the related asset. |
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at nominal |
amounts and released to profit or loss over the expected useful life of the asset, based on the pattern of |
consumption of the benefits of the underlying asset by equal annual instalments. |
Investment property |
Investment property is carried at fair value determined annually by the directors based on advice from professional surveyors and derived from the current market rents and investment property yields for comparable real estate, adjusted for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit and loss account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in 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 balance sheet date. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
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. |
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. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Investments |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
Income from investments together with any related tax credit is recognised in the profit and loss in the year in which it is receivable. |
Short term debtors and creditors |
Short term debtors and creditors with no stated interest rate or that are receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of not more than twelve months and bank overdrafts that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan. |
Foreign currency |
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. |
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. |
Employee benefits |
The cost of short term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Rental income |
Rental income is received from investment properties and is recognised on an accruals basis. |
Interest receivable |
Interest receivable relates to interest from fixed deposit accounts and is recognised on a receipts basis. |
Dividends |
Equity dividends are recognised when they become legally declared and payable. Interim equity dividends are recognised when declared or paid. Final equity dividends are recognised when approved by the shareholders. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires directors to make judgements, estimates and assumptions that affect the amounts reported of assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following are significant judgements: |
-Determining the useful life of assets |
This judgment involves assessing factors such as the asset's expected usage, wear and tear, technological obsolescence, and industry-specific conditions. Management is required to review and, if necessary, revise the useful life of assets regularly. Any changes in these estimates are applied prospectively, ensuring that the financial statements reflect a true and fair view of the company’s financial position and performance. |
-Lease classifications |
This judgment involves management assessing whether the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset to the lessee. Factors such as the lease term relative to the asset's useful life, the present value of lease payments compared to the asset's fair value, and the option to purchase the asset at a bargain price are considered. The outcome determines whether the lease is recognized on the balance sheet as a right-of-use asset and a corresponding lease liability (finance lease) or treated as an off-balance-sheet operating expense (operating lease). |
The following are key sources of estimation uncertainty: |
- Impairment of tangible fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. In determining whether there are indicators of impairment of the company's tangible fixed assets, factors taken into consideration by the directors include the economic value in use and whether there are any expected future cash flows to be generated from such assets. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
- Fair value of investment property |
In determining the carrying value of investment property at fair value through the profit and loss account, the directors apply the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstances of the investment drives the valuation methodology. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
- Trade debtors |
Trade debtors is reviewed annually at the reporting date for recoverability of monies for the provision of goods. If there is any evidence of impairment, the carrying value is reduced to its recoverable amount. Any impairment loss is recognised immediately in the profit and loss account. Customer discounts are recognised when their is certainty of early settlement of invoices. |
- Trade creditors |
Trade creditors is reviewed annually at the reporting date to identify potential overstatement. The directors are of the opinion that due to the generally poor administration and credit control of some suppliers, invoices for payment have remained on the purchase ledger. In light of this the directors also consider that it is not sensible commercial practice to chase suppliers to ascertain whether they would like payment for invoices which they have not chased themselves. Therefore, it is inevitable that there will be old purchase ledger balances. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
The company operates a single business segment as a wholesale distributor of menswear clothing, textiles, garments and materials predominantly in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
31.5.24 | 31.5.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
Directors | 3 | 3 |
Management and Administration | 10 | 9 |
31.5.24 | 31.5.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.24 | 31.5.23 |
£ | £ |
Late interest payment |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
31.5.24 | 31.5.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
Rents receivable | ( |
) |
(Gain)/loss on revaluation of investments | ( |
) | ( |
) |
Job retention scheme grant | ( |
) |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
8. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 June 2023 |
and 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Office |
Motor | furniture |
vehicles | & equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2023 |
and 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
On 12 August 2019, the company freehold property was independently and professionally valued by EHB Reeves Chartered Surveyors on a market value basis. The market value of the freehold property, owned by the company, amounted to £584,000 however, it is the policy of the company not to revalue freehold property, only investment property. |
9. | FIXED ASSET INVESTMENTS |
Listed |
investments |
£ |
COST OR VALUATION |
At 1 June 2023 |
Disposals | ( |
) |
Revaluations |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Fixed asset investments represents listed investments whose fair value is determined by reference to quoted price for identical assets in an active market at the balance sheet date. Fixed asset investments were valued on 31 May 2024 by Evelyn Partners Group Limited. |
If fixed asset investments had not been revalued they would have been included at the historical cost of £ 2,294,851 (2023: £2,293,275). |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
10. | INVESTMENT PROPERTIES |
Total |
£ |
COST OR VALUATION |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Cost or valuation at 31 May 2024 is represented by: |
£ |
Valuation in 2016 | 303,336 |
Valuation in 2019 | (169,000 | ) |
Cost | 5,161,474 |
5,295,810 |
Investment properties comprise of a building purchased in 2023, valued at £4,079,780 (2023: £4,079,780) and 2 units independently and professionally valued on 12 August 2019 by EHB Reeves Chartered Surveyors on a market value basis. Market value of these 2 units amounted to £1,216,000. Revaluation was reflected as at 31 May 2019. The directors believe there is no material change to the valuation of the investment properties between the valuation date and balance sheet date. |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Trade debtors |
Prepayments and accrued income |
12. | CURRENT ASSET INVESTMENTS |
Current asset investment represents an investment fund whose fair value is determined by reference to the unit price for identical assets in an active market at the balance sheet date. Current asset investment was valued on 31 May 2024 and 31 May 2023 by Prudential International Assurance Plc. |
If current asset investments had not been revalued they would have been included at the historical cost of £300,000 (2023: £300,000). |
13. | CASH AT BANK |
Included within cash at bank are the following balances not available for use by the company in relation to its principal activity: |
- £150,000 (2023: £150,000) representing a guarantee in favour of HMRC under the Duty Deferment Scheme on the import of goods; and |
- £7,589 (2023: £2,052) representing monies held by investment management company in respect of income generated from fixed asset investments. |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 45,922 | 313,827 |
Other creditors |
Directors' current accounts | 72,451 | 73,150 |
Accruals and deferred income |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | PROVISIONS FOR LIABILITIES |
31.5.24 | 31.5.23 |
£ | £ |
Deferred tax | 148,616 | 73,636 |
Deferred |
tax |
£ |
Balance at 1 June 2023 |
Charge / (Credit) for the year | 74,980 |
Balance at 31 May 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
JANDU DEVELOPMENTS LIMITED (REGISTERED NUMBER: 02488952) |
T/A J S MARKETING |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
18. | RESERVES |
Reserves of the company represent the following: |
Retained earnings: |
Accumulated profit and loss for the period and prior periods less dividends paid to owners. This reserve is |
considered distributable with the exception of amounts on revaluation of investments and investment properties (net of deferred tax). |
Fair value reserve: |
Accumulated revaluation for the period and previous periods of investments and investment properties (net of deferred tax). This reserve represents profits which are not available for distribution as they are unrealised. |
19. | PENSION COMMITMENTS |
The company utilizes a defined contribution pension scheme; Jandu Developments Limited Self Administered Pension Fund, an independently administered fund. |
The pension cost charge represents contributions payable by the company to the fund and amounted to £240,000 (2023:£240,000). |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included within creditors amounts falling due within one year is £72,179 (2023: £73,053) owed to Mr S S Jandu and £272 (2023: £96) owed to Mr J S Jandu. The amounts are unsecured and interest free with no set terms for repayment. |
21. | RELATED PARTY DISCLOSURES |
During the year the company entered into transactions in the ordinary course of the business with a company in which Mr S S Jandu and Mr J S Jandu are directors and shareholders: |
(i) The company sold goods totalling £2,891,472 (2023: £5,926,969); |
(ii) The company charged £40,000 (2023: £40,000) for the provision of management and administration services; |
(iii) The company charged £15,000 (2023: £15,000) for the provision of storage services; |
At the balance sheet date monies owed to Jandu Developments Limited amounted to £223,124 (2023: £221,402). |
During the year the company paid pension contributions totalling £240,000 (2023: £240,000) to a pension scheme in which the directors and their spouses are the trustees and beneficiaries. |
The company had a lease agreement with the pension scheme for the lease of business premises. The company paid rent to the pension scheme totalling £174,861. Balance outstanding at the year end is £Nil. |
22. | POST BALANCE SHEET EVENTS |
After the balance sheet date but before the issuance of the financial statements, there were no significant subsequent events requiring adjustment or disclosure in the financial statements. |
23. | ULTIMATE CONTROLLING PARTY |
The company is controlled by Mr S S Jandu and Mr J S Jandu by virtue of their majority shareholding. |