Company registration number 01614686 (England and Wales)
RAHIM & SONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
RAHIM & SONS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
RAHIM & SONS LIMITED
BALANCE SHEET
AS AT 29 APRIL 2024
29 April 2024
- 1 -
2024
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
238,718
110,655
Current assets
Stocks
900,000
850,000
Debtors
4
1,718,994
1,528,184
Cash at bank and in hand
662,531
96,272
3,281,525
2,474,456
Creditors: amounts falling due within one year
5
(1,799,619)
(1,377,967)
Net current assets
1,481,906
1,096,489
Total assets less current liabilities
1,720,624
1,207,144
Creditors: amounts falling due after more than one year
6
(41,050)
(25,834)
Provisions for liabilities
(36,117)
(2,148)
Net assets
1,643,457
1,179,162
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
1,643,357
1,179,062
Total equity
1,643,457
1,179,162
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 29 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
S Rahim
Director
Company Registration No. 01614686
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
- 2 -
1
Accounting policies
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Reporting period
The financial statements are for the eighteen month period ended 29 April 2024. During the year, the company's reporting period was extended and as such the comparative amounts presented in these financial statements (including the related notes) may not entirely be comparable.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% per annum straight line
Plant and machinery
33.33% per annum straight line
Fixtures, fittings & equipment
33.33% per annum straigfht line
Computer equipment
25% per annum reducing balance
Motor vehicles
25% per annum straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Company information
Rahim & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Kenwood Road, Reddish, Stockport, Cheshire, SK5 6PH.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2022
Number
Number
Total
12
12
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2024
- 5 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2022
109,241
77,888
187,129
Additions
160,076
160,076
Disposals
(25,670)
(25,670)
At 29 April 2024
109,241
212,294
321,535
Depreciation and impairment
At 1 November 2022
17,076
59,398
76,474
Depreciation charged in the period
3,277
28,736
32,013
Eliminated in respect of disposals
(25,670)
(25,670)
At 29 April 2024
20,353
62,464
82,817
Carrying amount
At 29 April 2024
88,888
149,830
238,718
At 31 October 2022
92,165
18,490
110,655
4
Debtors
2024
2022
Amounts falling due within one year:
£
£
Trade debtors
1,235,293
1,072,994
Other debtors
483,701
455,190
1,718,994
1,528,184
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2024
- 6 -
5
Creditors: amounts falling due within one year
2024
2022
£
£
Bank loans
10,000
10,000
Trade creditors
422,539
209,041
Taxation and social security
906,671
667,039
Other creditors
460,409
491,887
1,799,619
1,377,967
Included in other creditors are bank advances against factored debts which are on a non recourse basis up to the value of 75% of the debt. The amount outstanding at the period end was £131 (year ended 31 October 2022 - £76,785). The bank has a fixed charge over book debts and also a floating charge over all other assets and undertakings of the company.
Other creditors includes an obligations under hire purchase and finance lease contracts amounting to £11,693 (year ended 31 October 2022 - £7,280) that are secured on the assets on which they relate to.
6
Creditors: amounts falling due after more than one year
2024
2022
£
£
Bank loans and overdrafts
10,833
25,834
Other creditors
30,217
41,050
25,834
Bank loans outstanding are government backed Coronavirus Bounce Bank Loans and are due to be repaid over 3 years.
Other creditors includes an obligations under hire purchase and finance lease contracts amounting to £30,217 (year ended 31 October 2022 - £nil) that are secured on the assets on which they relate to.
RAHIM & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2024
- 7 -
7
Called up share capital
2024
2022
2024
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
8
Financial commitments, guarantees and contingent liabilities
The bank has given a guarantee to HM Revenue & Customs for £80,000 in respect of amounts owing to them, from time to time, for import duty and VAT.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2022
£
£
551,100
184,528
10
Directors' transactions
Included in other creditors are directors' loan accounts due from the company amounting to £100,000 (year ended 31 October 2022 - £nil) and £11,022 (year ended 31 October 2022 - £25,115). The maximum balance outstanding on the loan during the period was £27,632. No interest was charged on these loans during the period.