NJK CLOTHING LTD Company accounts

COMPANY REGISTRATION NUMBER: 6976743

NJK CLOTHING LTD

Financial Statements

31 July 2024

NJK CLOTHING LTD

Financial Statements

Year ended 31st July 2024

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	5

Statement of income and retained earnings	9

Statement of financial position	10

Statement of cash flows	11

Notes to the financial statements	12

NJK CLOTHING LTD

Strategic Report

Year ended 31st July 2024

Business review

The company has had another positive year during which trading continued to be profitable. In the face of the recent increase in inflation and the ensuing "cost of living" crisis, the company has managed to maintain profitability. The strong relationships with strategic business partners, both suppliers and customers, have been instrumental in this. Despite the unpredictable buying patterns affecting fashion retailers across the sector, the company remains resilient. While turnover has decreased from the previous financial year, the company is actively collaborating with partners to develop new product lines with the goal of achieving positive sales growth while safeguarding profit margins. The support exchanged during these challenging and dynamic times strengthens this partnership but the effects of the current trading environment will continue until normal business conditions resume.

Performance monitoring

The company's strategic objectives are closely monitored by the directors through Key Performance Indicators (KPIs) and regular reviews of various operational aspects. The following KPIs are considered essential measures for the successful execution of the corporate strategy. Sales Revenue Strong sales revenue together with growth in shareholders' funds. Operating Profit The continued reinvestment of operating profits which allows the company to continue to invest in its stock and facilities.

Results

The company made a pre-tax profit of £1,881,485 (2023: £1,898,806) for the year from a turnover of £19,401,506 (2023: £20,432,332). At 31 July 2024 the company had net assets of £7,623,622 (2023: £7,252,989).

This report was approved by the board of directors on 1st April 2025 and signed on behalf of the board by:

R.D. Patel

Director

Registered office:

NJK House

Unit B1

Haslingden Road

Blackburn

Lancashire

BB1 2EE

NJK CLOTHING LTD

Directors' Report

Year ended 31st July 2024

The directors present their report and the financial statements of the company for the year ended 31 July 2024 .

Principal activities

The principal activity of the company during the year was the wholesaling of clothing.

Directors

The directors who served the company during the year were as follows:

Z. Keshani
R.D. Patel
A. Singh Grewal

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Future developments

The company will continue to focus on turnover and profitability with a view to future reinvestment of retained profits from previous years.

Disclosure of information in the strategic report

In accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report)Regulations 2013 the company's strategic report is shown separately on page 1 of the financial statements. The financial risk management objectives and policies of the company are found within the strategic report.

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.

This report was approved by the board of directors on 1 April 2025 and signed on behalf of the board by:

R.D. Patel

Director

Registered office:

NJK House

Unit B1

Haslingden Road

Blackburn

Lancashire

BB1 2EE

NJK CLOTHING LTD

Independent Auditor's Report to the Members of NJK CLOTHING LTD

Year ended 31st July 2024

Opinion

We have audited the financial statements of NJK CLOTHING LTD (the 'company') for the year ended 31st July 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 31st July 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. The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; - inquired of management and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures. The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and testing a sample of revenue transactions recorded in the year to determine whether revenue had been recorded correctly. 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 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 auditor's 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.

DAVID SHAPIRO BA FCA

(Senior Statutory Auditor)

For and on behalf of

Edwards Veeder LLP

Chartered Accountants & statutory auditor

Alex House

260-268 Chapel Street

Salford

M3 5JZ

2 April 2025

NJK CLOTHING LTD

Statement of Income and Retained Earnings

Year ended 31st July 2024

		2024	2023
Note		£	£
Turnover	4	19,401,506	20,432,332

Cost of sales	16,229,664	17,262,695
	-------------	-------------
Gross profit	3,171,842	3,169,637

Administrative expenses		1,284,709	1,268,300
		------------	------------
Operating profit	5	1,887,133	1,901,337

Other interest receivable and similar income	9	198	4
Interest payable and similar expenses	10	5,846	2,535
		------------	------------
Profit before taxation		1,881,485	1,898,806

Tax on profit	11	462,273	401,807
		------------	------------
Profit for the financial year and total comprehensive income		1,419,212	1,496,999
		------------	------------

Dividends paid and payable	12	( 1,048,579)	( 1,207,043)

Retained earnings at the start of the year	7,252,765	6,962,809
	------------	------------
Retained earnings at the end of the year	7,623,398	7,252,765
	------------	------------

All the activities of the company are from continuing operations.

NJK CLOTHING LTD

Statement of Financial Position

31 July 2024

	2024		2023
Note	£	£	£	£

Fixed assets

Intangible assets	13	173,333	193,333
Tangible assets	14	286,003	75,714
		---------	---------
		459,336	269,047

Current assets

Debtors	15	4,211,779	3,035,092
Cash at bank and in hand		5,767,564	5,773,182
		------------	------------
		9,979,343	8,808,274

Creditors: amounts falling due within one year	16	2,799,840		1,824,332
		------------		------------
Net current assets			7,179,503		6,983,942
			------------		------------
Total assets less current liabilities			7,638,839		7,252,989

Provisions	17	15,217	–
		------------	------------
Net assets		7,623,622	7,252,989
		------------	------------

Capital and reserves

Called up share capital	20	224	224
Profit and loss account		7,623,398	7,252,765
		------------	------------
Shareholders funds		7,623,622	7,252,989
		------------	------------

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 1 April 2025 , and are signed on behalf of the board by:

Z. Keshani	R.D. Patel
Director	Director

Company registration number: 6976743

NJK CLOTHING LTD

Statement of Cash Flows

Year ended 31st July 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	1,419,212	1,496,999

Adjustments for:
Depreciation of tangible assets	52,598	23,757
Amortisation of intangible assets	20,000	6,667
Other interest receivable and similar income	( 198)	( 4)
Interest payable and similar expenses	5,846	2,535
Tax on profit	462,273	401,807
Accrued income	( 95,871)	( 1,303,925)

Changes in:
Stocks	–	453,599
Trade and other debtors	( 1,176,687)	4,219,042
Trade and other creditors	842,127	( 3,032,833)
	------------	------------
Cash generated from operations	1,529,300	2,267,644

Interest paid	( 5,846)	( 2,535)
Interest received	198	4
Tax paid	( 217,804)	( 693,982)
	------------	------------
Net cash from operating activities	1,305,848	1,571,131
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 308,888)	( 7,214)
Proceeds from sale of tangible assets	46,001	–
Purchase of intangible assets	–	( 200,000)
	------------	------------
Net cash used in investing activities	( 262,887)	( 207,214)
	------------	------------

Cash flows from financing activities

Dividends paid	( 1,048,579)	( 1,207,043)
	------------	------------
Net cash used in financing activities	( 1,048,579)	( 1,207,043)
	------------	------------

Net (decrease)/increase in cash and cash equivalents	( 5,618)	156,874
Cash and cash equivalents at beginning of year	5,773,182	5,616,308
	------------	------------
Cash and cash equivalents at end of year	5,767,564	5,773,182
	------------	------------

NJK CLOTHING LTD

Notes to the Financial Statements

Year ended 31st July 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is NJK House, Unit B1, Haslingden Road, Blackburn, Lancashire, BB1 2EE.

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 the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities was the assets and liabilities held in foreign currencies. These assets and Liabilities are translated to the companies' functional currency at the balance sheet date and the foreign exchange gain or loss transferred to the Profit and Loss account. Useful life of fixed assets: In making decisions regarding the depreciation of non-current assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the profit or loss in each year. The carrying amount of depreciation at 31st July 2024 was £119,484 (2023 £150,207).

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods 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.

Taxation

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.

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.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

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:

	Brands	-	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. 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 equity, 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 equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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:

Long leasehold	-	10% straight line
Fixtures and fittings	-	20% reducing balance
Motor vehicles	-	15% straight line
Equipment	-	20 % 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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

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. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	19,401,506	20,432,332
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2024	2023
	£	£
United Kingdom	18,639,183	20,124,557
Overseas	762,323	307,775
	-------------	-------------
	19,401,506	20,432,332
	-------------	-------------

5. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Amortisation of intangible assets	20,000	6,667
Depreciation of tangible assets	52,598	23,757
Operating lease rentals	126,465	129,718
	---------	---------

6. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	11,213	9,556
	--------	-------

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	18	17
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	679,831	707,280
Social security costs	60,211	69,326
Other pension costs	13,271	20,521
	---------	---------
	753,313	797,127
	---------	---------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	50,358	51,714
Company contributions to defined contribution pension plans	3,522	2,234
	--------	--------
	53,880	53,948
	--------	--------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	1	1
	----	----

9. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	198	4
	----	----

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	5,846	2,535
	-------	-------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	447,056	401,807

Deferred tax:

Origination and reversal of timing differences	15,217	–
	---------	---------
Tax on profit	462,273	401,807
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 23.75 % (2023: 21.01 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	1,881,485	1,898,806
	------------	------------
Profit on ordinary activities by rate of tax	470,371	398,853
Effect of capital allowances and depreciation	( 23,315)	2,954
Effect of deferred tax additions	15,217	–
	------------	------------
Tax on profit	462,273	401,807
	------------	------------

12. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Dividends on equity shares	1,048,579	1,207,043
	------------	------------

13. Intangible assets

	Intellectual property
	£
Cost
At 1st August 2023 and 31st July 2024	200,000
	---------
Amortisation
At 1st August 2023	6,667
Charge for the year	20,000
	---------
At 31st July 2024	26,667
	---------
Carrying amount
At 31st July 2024	173,333
	---------
At 31st July 2023	193,333
	---------

14. Tangible assets

	Long leasehold property	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1st August 2023	–	29,117	129,322	67,482	225,921
Additions	72,132	61,698	166,856	8,202	308,888
Disposals	–	–	( 129,322)	–	( 129,322)
	--------	--------	---------	--------	---------
At 31st July 2024	72,132	90,815	166,856	75,684	405,487
	--------	--------	---------	--------	---------
Depreciation
At 1st August 2023	–	27,256	74,360	48,591	150,207
Charge for the year	1,803	5,425	31,904	13,466	52,598
Disposals	–	–	( 83,321)	–	( 83,321)
	--------	--------	---------	--------	---------
At 31st July 2024	1,803	32,681	22,943	62,057	119,484
	--------	--------	---------	--------	---------
Carrying amount
At 31st July 2024	70,329	58,134	143,913	13,627	286,003
	--------	--------	---------	--------	---------
At 31st July 2023	–	1,861	54,962	18,891	75,714
	--------	--------	---------	--------	---------

15. Debtors

	2024	2023
	£	£
Trade debtors	4,076,414	2,899,614
Prepayments and accrued income	111,426	74,126
Other debtors	23,939	61,352
	------------	------------
	4,211,779	3,035,092
	------------	------------

16. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	610,028	293,702
Accruals and deferred income	136,075	231,946
Corporation tax	447,024	217,772
Social security and other taxes	163,905	55,545
Other creditors	1,442,808	1,025,367
	------------	------------
	2,799,840	1,824,332
	------------	------------

HSBC hold a legal assignment of contract monies dated 05/03/2024.

17. Provisions

	Deferred tax (note 18)
	£
At 1st August 2023	–
Additions	15,217
	--------
At 31st July 2024	15,217
	--------

18. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 17)	15,217	–
	--------	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	15,217	–
	--------	----

19. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 9,749 (2023: £ 18,287 ).

20. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	224	224	224	224
	----	----	----	----

21. Analysis of changes in net debt

	At 1 Aug 2023	Cash flows	At 31 Jul 2024
	£	£	£
Cash at bank and in hand	5,773,182	(5,618)	5,767,564
	------------	-------	------------

22. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	126,465	126,465
	---------	---------

NJK CLOTHING LTD

Notes to the Financial Statements (continued)

Year ended 31st July 2024

23. Related party transactions

The managing director of the company was Mr Rafiq D.Patel who together with other close family members control the company. During the year dividends of £730,736 (2023 £846,896) were paid ZDK & company Limited. Included in other creditors is an amount owing to ZDK & Company Limited of £601,764 (2023 £665,220). Mr Rafiq D.Patel is a director of ZDK & Company Limited. ZDK & Company Limited owns 50% of the share capital of NJK Clothing Limited. During the year dividends of £317,843 (2023 £360,147) were paid to AS 2019 Limited. Included in other creditors is an amount owing to AS 2019 Limited of £317,843 (2023 £360,147). Mr Amarjit Singh Grewal is a director of AS 2019 Limited. AS 2019 Limited owns 50% of the share capital of NJK Clothing Limited. Mr Rafiq D.Patel is a shareholder of Khanjra Trading Limited. During the year Khanjra Trading Limited raised invoices to NJK Clothing Limited for rent for £126,465 (2023 £126,465). Included in other debtors is an amount of £10,539 (2023 £10,539) paid to Khanjra Trading Limited as a deposit. Mr Amarjit Singh Grewal is a director of Boi Trading Company Limited. Included in Trade Debtors is an amount owed to NJK Clothing limited of £479,371 (2023 £57,478). Included in turnover are sales to Boi Trading Limited of £2,439,607 (2023 £1,086,546).