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Registered number: 02937706










ESKANDAR LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
ESKANDAR LIMITED
 
 
COMPANY INFORMATION


Director
E Nabavi 




Company secretary
T Bennett



Registered number
02937706



Registered office
2 London Wall Place

London

EC2Y 5AU




Independent auditors
MHA

2 London Wall Place

London

EC2Y 5AU





 
ESKANDAR LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Director's Report
 
4 - 5
Independent Auditors' Report
 
6 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Balance Sheet
 
10 - 11
Company Balance Sheet
 
12 - 13
Consolidated Statement of Changes in Equity
 
14 - 15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17 - 18
Notes to the Financial Statements
 
19 - 41


 
ESKANDAR LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The director presents the Strategic report and the financial statements for Eskandar Limited (the "Company") and its subsidiaries (collectively, the "Group") for the year ended 31 March 2024. The principal activity of the Group is the retailing of luxury clothing and accessories. 

Business review
 
The Group’s largest sales channel continued to be its own retail outlets, in London (Chelsea & Mayfair), Paris, New York, Chicago and Los Angeles followed by wholesale, notably Neiman Marcus and Bergdorf Goodman in the United States, and its concessions in Harrods and Liberty. In October, a fourth sales channel was added; an Eskandar online store. 
The Group’s key performance indicators are those that reflect the Group's growth and profitability. The Group's key performance indicators are as follows:
                                                       2024                           2023
Turnover                                      £10,107,488                £11,428,110  
Gross profit margin                            71%                            71%
Loss (profit) before tax                  (£441,486)                     £905,585    
The 10% drop in sales reflected challenging market conditions. Our key wholesale accounts scaled back their vendor purchases in general and other customers were lost. Our concession sales in Harrods were adversely affected by refurbishment works that resulted in our store being moved into a smaller temporary space. Retail sales were dragged down by the US based stores. The London stores and stand in Harrods continue to be adversely impacted by the removal of tax-free shopping for overseas tourists. Paris' key trading month of July was decimated by the Olympics. In October 2023, we launched our first online store, which despite its limited stock offer, generated sales ahead of expectations. 
Following the launch of Eskandar online stores during the year, post the balance sheet date, online sales growth continued and is now our largest sales generator. The Los Angeles store closed in October 2024 as the proposed rent increase and downward sales trend made the store unviable. Despite one-off exit costs from closing the Los Angeles store, we expect the business to return to profitability in 2025 because of online sales.
In March 2025, properties held in Eskandar US Corporation LLC were sold for $2.28m, and the net proceeds after fees and taxes were used to repay much of its loan from Eskandar Limited. 

Page 1

 
ESKANDAR LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
Financial and non-financial
Given our customer demographic, we were particularly adversely affected by the pandemic with some of our stores still trading below their pre-pandemic levels. This slower recovery combined with the above noted, largely one-off, factors that reduced retail sales as well as wholesale customers reducing their orders or closing, did impact the liquidity of the business. As a result, we had to borrow to fund the seasonal buy and cover our trading loss. However, the working capital position of the business has been markedly improved by the cash injection from the above noted property sale. This will help offset the likely reduction in credit terms from some of our suppliers. Cash generation and cash flow management continues to be a key focus as there can be a considerable time lag between paying our suppliers and being paid by our customers. 
Inflation continues to be a risk and we continue to work with our suppliers to reduce the impact of rising raw material and labour costs. The fact that our gross margin is over 70% is testament to our ongoing focus on this area.
Inflation continues to be a significant risk and we continue to work with our suppliers to reduce the impact of rising raw material and labour costs. The fact that our gross margin is above 70% is testament to our ongoing focus in this area.
The imposition of higher US tariffs would likely mean we would have to increase our US retail and wholesale prices to maintain our gross margin. There is a risk that higher prices could dampen demand and result in lower sales.
With a significant proportion of our sales received in USD, and a high proportion of our purchases denominated in EUR, fluctuations in exchange rates impact the profitability of the business. As a result, we use hedging contracts to reduce the risk of currency fluctuations.
 
Page 2

 
ESKANDAR LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024



This report was approved by the board and signed on its behalf.



E Nabavi
Director

Date: 15 April 2025

Page 3

 
ESKANDAR LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The director presents his report and the financial statements for the year ended 31 March 2024.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation and minority interests, amounted to £628,849 (2023 - profit £636,149).

During the year, the Company paid dividends of £327,404 (2023: £604,028).

Director

The director who served during the year was:

E Nabavi 

Future developments

The Group will continue to pursue organic growth through wholesale and retail opportunities. 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 4

 
ESKANDAR LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Post balance sheet events

These have been detailed in the Group Strategic Report.

This report was approved by the board and signed on its behalf.
 





E Nabavi
Director

Date: 15 April 2025

Page 5

 
ESKANDAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESKANDAR LIMITED
 

Opinion


We have audited the financial statements of Eskandar Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 Group's or the parent 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 director with respect to going concern are described in the relevant sections of this report.


Page 6

 
ESKANDAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESKANDAR LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's Responsibilities Statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
ESKANDAR LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESKANDAR LIMITED (CONTINUED)


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 an Auditors' 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 Group financial statements.


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:
Enquiry of management and those charged with governance around actual and potential litigation and claims.


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 Auditors' 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 2006Our 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 Auditors' 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.





Stephen Poleykett (Senior Statutory Auditor)
for and on behalf of MHA, Statutory Auditors 
London, United Kingdom

17 April 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
Page 8

 
ESKANDAR LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,107,488
11,428,110

Cost of sales
  
(2,930,021)
(3,338,540)

Gross profit
  
7,177,467
8,089,570

Administrative expenses
  
(7,581,043)
(7,246,546)

Fair value movements
  
31,866
89,282

Operating (loss)/profit
 5 
(371,710)
932,306

Interest payable and similar expenses
 9 
(69,776)
(26,721)

(Loss)/profit before taxation
  
(441,486)
905,585

Tax on (loss)/profit
 10 
(195,623)
(259,722)

(Loss)/profit for the financial year
  
(637,109)
645,863

  

Exchange differences on retranslation of subsidiary undertakings
  
(28,366)
(136,776)

Total comprehensive income for the year
  
(665,475)
509,087

(Loss)/profit for the year attributable to:
  

Non-controlling interests
  
(8,260)
9,714

Owners of the parent Company
  
(628,849)
636,149

  
(637,109)
645,863

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
(8,260)
9,714

Owners of the parent Company
  
(657,215)
499,373

  
(665,475)
509,087

The notes on pages 19 to 41 form part of these financial statements.

Page 9

 
ESKANDAR LIMITED
REGISTERED NUMBER: 02937706

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible fixed assets
 12 
201,125
251,404

Tangible fixed assets
 13 
243,616
405,921

  
444,741
657,325

Current assets
  

Stocks
 15 
1,780,893
1,772,918

Debtors: amounts falling due after more than one year
 16 
160,434
88,500

Debtors: amounts falling due within one year
 16 
2,362,403
2,835,987

Cash at bank and in hand
 17 
207,039
229,706

  
4,510,769
4,927,111

Creditors: amounts falling due within one year
 18 
(2,934,981)
(2,799,875)

Net current assets
  
 
 
1,575,788
 
 
2,127,236

Total assets less current liabilities
  
2,020,529
2,784,561

Creditors: amounts falling due after more than one year
 19 
(499,680)
(270,833)

Provisions for liabilities
  

Provisions
 23 
(461,746)
(461,746)

Net assets
  
1,059,103
2,051,982


Capital and reserves
  

Called up share capital 
 24 
50,383
50,383

Share premium account
 25 
55,108
55,108

Foreign exchange reserve
 25 
(277,552)
(249,186)

Profit and loss account
 25 
1,241,776
2,198,029

Equity attributable to owners of the parent Company
  
1,069,715
2,054,334

Non-controlling interests
  
(10,612)
(2,352)

  
1,059,103
2,051,982


Page 10

 
ESKANDAR LIMITED
REGISTERED NUMBER: 02937706
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




E Nabavi
Director

Date: 15 April 2025

The notes on pages 19 to 41 form part of these financial statements.

Page 11

 
ESKANDAR LIMITED
REGISTERED NUMBER: 02937706

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
10,024
41,758

Investments
 14 
1,370
33,720

  
11,394
75,478

Current assets
  

Stocks
 15 
822,674
924,052

Debtors: amounts falling due after more than one year
 16 
88,500
88,500

Debtors: amounts falling due within one year
 16 
4,439,020
4,722,637

Cash at bank and in hand
 17 
54,693
64,392

  
5,404,887
5,799,581

Creditors: amounts falling due within one year
 18 
(2,651,377)
(2,840,881)

Net current assets
  
 
 
2,753,510
 
 
2,958,700

Total assets less current liabilities
  
2,764,904
3,034,178

  

Creditors: amounts falling due after more than one year
 19 
(428,388)
(270,833)

Provisions for liabilities
  

Other provisions
 23 
(1,528,147)
(1,582,337)

Net assets
  
808,369
1,181,008


Capital and reserves
  

Called up share capital 
 24 
50,383
50,383

Share premium account
 25 
55,108
55,108

Profit and loss account
 25 
702,878
1,075,517

  
808,369
1,181,008


Page 12

 
ESKANDAR LIMITED
REGISTERED NUMBER: 02937706
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


E Nabavi
Director

Date: 15 April 2025

The notes on pages 19 to 41 form part of these financial statements.

Page 13

 

 
ESKANDAR LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Share premium account
Foreign exchange reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£


At 1 April 2023
50,383
55,108
(249,186)
2,198,029
2,054,334
(2,352)
2,051,982





Loss for the year
-
-
-
(628,849)
(628,849)
(8,260)
(637,109)


Exchange differences on retranslation of subsidiary undertakings
-
-
(28,366)
-
(28,366)
-
(28,366)


Dividends
-
-
-
(327,404)
(327,404)
-
(327,404)



At 31 March 2024
50,383
55,108
(277,552)
1,241,776
1,069,715
(10,612)
1,059,103



The notes on pages 19 to 41 form part of these financial statements.

Page 14

 

 
ESKANDAR LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Foreign exchange reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£


At 1 April 2022
50,383
55,108
(112,410)
2,165,908
2,158,989
(12,066)
2,146,923





Profit for the year
-
-
-
636,149
636,149
9,714
645,863


Exchange differences on retranslation of subsidiary undertakings
-
-
(136,776)
-
(136,776)
-
(136,776)


Dividends
-
-
-
(604,028)
(604,028)
-
(604,028)



At 31 March 2023
50,383
55,108
(249,186)
2,198,029
2,054,334
(2,352)
2,051,982



The notes on pages 19 to 41 form part of these financial statements.

Page 15

 
ESKANDAR LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
50,383
55,108
1,183,551
1,289,042



Profit for the year
-
-
495,994
495,994

Dividends
-
-
(604,028)
(604,028)



At 1 April 2023
50,383
55,108
1,075,517
1,181,008



Loss for the year
-
-
(45,235)
(45,235)

Dividends
-
-
(327,404)
(327,404)


At 31 March 2024
50,383
55,108
702,878
808,369


The notes on pages 19 to 41 form part of these financial statements.

Page 16

 
ESKANDAR LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(637,109)
645,863

Adjustments for:

Amortisation of intangible assets
50,279
50,279

Depreciation of tangible assets
198,227
202,203

Interest paid
69,776
26,721

Taxation charge
195,623
259,722

(Increase) in stocks
(7,975)
(130,518)

Decrease/(increase) in debtors
409,752
(109,776)

(Decrease) in creditors
(42,319)
(378,032)

Increase in provisions
-
80,000

Fair value gains
(31,866)
(89,282)

Corporation tax (paid)
(175,026)
(46,191)

Other non-cash adjustment
(28,366)
-

Net cash generated from operating activities

996
510,989


Cash flows from investing activities

Purchase of tangible fixed assets
(35,922)
(88,029)

Net cash from investing activities

(35,922)
(88,029)

Cash flows from financing activities

New loans
501,277
-

Repayment of loans
(200,544)
(296,729)

Dividends paid
(327,404)
(604,028)

Interest paid
(69,776)
(26,721)

Net cash used in financing activities
(96,447)
(927,478)

Net (decrease) in cash and cash equivalents
(131,373)
(504,518)

Cash and cash equivalents at beginning of year
80,839
585,357

Cash and cash equivalents at the end of year
(50,534)
80,839


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
207,039
229,706

Bank overdrafts
(257,573)
(148,867)

(50,534)
80,839

Page 17

 
ESKANDAR LIMITED
 

The notes on pages 19 to 41 form part of these financial statements.

Page 18

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The Company is a private company limited by shares. The Company is incorporated in England and Wales, registration number 02937706. The principal activity of the Company during the year was the designing, wholesaling and retailing of ladies luxury clothing and accessories. The address of the registered office is 2 London Wall Place, London, EC2Y 5AU.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Director has considered relevant information, including the forecast future cash flows and the impact of subsequent events in making their assessment.The shareholder has also pledged to continue to support the
group/company for a period of at least 12 months following the balance sheet sign-off.
Based on these assessments and having regard to the resources available to the entity, the Director has concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 19

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 20

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Lease premiums are amortised over the term of the lease. 

Page 22

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Shorter of useful life and lease term
IT development & Hardware
-
25% straight-line
Office equipment, fixtures & fittings
-
3-10 years straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.12

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. 
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in profit or loss.

Page 23

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance Sheet when the Group 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are
Page 24

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary
Page 25

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: 
Trade debtors 
Management apply judgement in evaluating the recoverability of debtors. To the extent that the Director believes debtors not to be recoverable, they have been provided for in the financial statements. 
Stock 
Management apply judgement in evaluating stock for slow-moving and obsolescence. The judgement is based on management's knowledge of the stock and customer demand, as well as the age of stock. At each balance sheet date, stocks are assessed for impairment and written down where appropriate.
Investments 
Management apply judgement in evaluating investments for overstatement. The judgement is based on the projected net present value of future cash flows. At each balance sheet date, investments are assessed for impairment and written down where appropriate. 
Stock returns provision  
Management apply judgment in evaluating the required provision for the return of stock from third parties and subsidiaries. The judgement is based on projected returns of stock and net realisable value of stock lines.
Dilapidation provision 
Management apply judgement in evaluating the required provision for dilapidation. The judgement is based on management knowledge of the expected costs to repair damages and reinstate alterations.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sales
10,107,488
11,428,110


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
3,807,634
4,926,938

Rest of Europe
774,855
761,851

Rest of the World
5,524,999
5,739,321

10,107,488
11,428,110


Page 27

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
198,227
202,203

Amortisation of intangible assets
50,279
50,279

Exchange differences
126,826
(189,433)

Operating lease expense
1,620,790
1,886,645


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
67,500
60,500


7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
2,246,004
2,124,501
1,072,778
1,008,409

Social security costs
202,702
195,651
111,547
108,588

Pension costs
98,231
100,616
63,909
61,863

2,546,937
2,420,768
1,248,234
1,178,860


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Production staff
4
4



Distribution staff
31
32



Administrative staff
15
15

50
51

Page 28

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Director's remuneration

2024
2023
£
£

Director's emoluments
10,622
10,427



9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
69,776
26,721


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
191,280
238,448


191,280
238,448

Foreign tax


Foreign tax on income for the year
4,343
21,274

Total current tax
195,623
259,722

Deferred tax

Total deferred tax
-
-


Tax on (loss)/profit
195,623
259,722
Page 29

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(441,486)
905,585


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(110,372)
172,061

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(26)
19,348

Capital allowances for year in excess of depreciation
19,011
5,323

Non-taxable
171,478
(48,210)

Tax on foreign subsidiaries
4,457
21,274

Double taxation relief
(38,183)
(13,234)

Unrelieved loss on foreign subsidiaries
149,258
103,160

Total tax charge for the year
195,623
259,722


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




11.


Dividends

2024
2023
£
£


Interim dividends paid
327,404
604,028

Page 30

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Intangible assets

Group





Lease premium
Goodwill
Total

£
£
£



Cost


At 1 April 2023
1,356,605
855
1,357,460



At 31 March 2024

1,356,605
855
1,357,460



Amortisation


At 1 April 2023
1,106,056
-
1,106,056


Charge for the year on owned assets
50,279
-
50,279



At 31 March 2024

1,156,335
-
1,156,335



Net book value



At 31 March 2024
200,270
855
201,125



At 31 March 2023
250,549
855
251,404



Page 31

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible fixed assets

Group






Leasehold improvements
IT development & hardware
Office equipment, fixtures and fittings
Total

£
£
£
£



Cost


At 1 April 2023
3,728,647
48,818
665,569
4,443,034


Additions
-
-
35,922
35,922


Disposals
-
-
(107,030)
(107,030)



At 31 March 2024

3,728,647
48,818
594,461
4,371,926



Depreciation


At 1 April 2023
3,485,007
48,818
503,288
4,037,113


Charge for the year on owned assets
138,752
-
59,475
198,227


Disposals
-
-
(107,030)
(107,030)



At 31 March 2024

3,623,759
48,818
455,733
4,128,310



Net book value



At 31 March 2024
104,888
-
138,728
243,616



At 31 March 2023
243,640
-
162,281
405,921

Page 32

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           13.Tangible fixed assets (continued)


Company






IT development & hardware
Office equipment, fixtures and fittings
Total

£
£
£

Cost 


At 1 April 2023
48,818
246,993
295,811


Additions
-
6,612
6,612


Disposals
-
(107,030)
(107,030)



At 31 March 2024

48,818
146,575
195,393



Depreciation


At 1 April 2023
48,818
205,235
254,053


Charge for the year on owned assets
-
38,346
38,346


Disposals
-
(107,030)
(107,030)



At 31 March 2024

48,818
136,551
185,369



Net book value



At 31 March 2024
-
10,024
10,024



At 31 March 2023
-
41,758
41,758






Page 33

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies
Loans to subsidiaries
Total

£
£
£



Cost


At 1 April 2023
407,765
3,276,857
3,684,622


Additions
-
60,193
60,193



At 31 March 2024

407,765
3,337,050
3,744,815



Impairment


At 1 April 2023
407,764
3,243,138
3,650,902


Charge for the period
-
92,543
92,543



At 31 March 2024

407,764
3,335,681
3,743,445



Net book value



At 31 March 2024
1
1,369
1,370



At 31 March 2023
1
33,719
33,720


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Eskandar London Limited
2 London Wall Place, London, EC2Y 5AU
Ordinary
100%
Eskandar Paris SARL
7 Rue Princesse, 75006 Paris, France
Ordinary
98.6%
Eskandar Holdings LLC
33 E 10th St, New York, NY 10003, USA
Ordinary
100%
Eskandar New York LLC
33 E 10th St, New York, NY 10003, USA
Ordinary
100%
Eskandar Los Angeles LLC
8816 Melrose Ave, Los Angeles, CA 90069
Ordinary
100%
Eskandar Chicago LLC
70E Walton St, Chicago, IL 60611, USA
Ordinary
100%

Page 34

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Raw materials and consumables
309,402
391,484
309,402
391,484

Finished goods and goods for resale
1,471,491
1,381,434
513,272
532,568

1,780,893
1,772,918
822,674
924,052


The difference between purchase price or production cost of stocks and their replacement cost is not material.
Group stock is stated after provisions for impairment of £1,184,901 (2023: £1,114,198).
The parent's stock is stated after provisions for impairment of £570,444 (2023: £441,625).


16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
160,434
88,500
88,500
88,500


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
462,756
527,127
341,916
421,116

Amounts owed by group undertakings
-
-
2,485,125
2,549,333

Other debtors
1,589,050
1,908,062
1,430,169
1,565,619

Prepayments and accrued income
272,020
370,322
151,948
164,919

Tax recoverable
8,715
8,826
-
-

Deferred taxation
21,650
21,650
21,650
21,650

Forward contracts
8,212
-
8,212
-

2,362,403
2,835,987
4,439,020
4,722,637


Page 35

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
207,039
229,706
54,693
64,392

Less: bank overdrafts
(257,573)
(148,867)
(257,573)
(148,867)

(50,534)
80,839
(202,880)
(84,475)



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
257,573
148,867
257,573
148,867

Bank loans
130,000
159,557
130,000
159,557

Other loans
172,735
-
172,735
-

Trade creditors
776,326
1,087,948
644,386
822,197

Amounts owed to group undertakings
-
-
87,262
646,012

Corporation tax
629,809
609,324
629,809
609,324

Other taxation and social security
215,519
272,661
72,058
140,469

Other creditors
272,314
53,869
238,878
23,004

Accruals and deferred income
480,705
443,995
418,676
267,797

Forward contracts
-
23,654
-
23,654

2,934,981
2,799,875
2,651,377
2,840,881


Bank loans and overdrafts are secured by way of a fixed and floating charge.

Page 36

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
140,833
270,833
140,833
270,833

Other loans
287,555
-
287,555
-

Accruals and deferred income
71,292
-
-
-

499,680
270,833
428,388
270,833


Bank loans and overdrafts are secured by way of a fixed and floating charge.

The company has bank and non-bank loans which accrue interest at Base rate + between 4% - 29%  per annum. Bank loans are secured by an unlimited debenture over the Company's assets.


20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
130,000
159,557
130,000
159,557

Other loans
172,735
-
172,735
-


302,735
159,557
302,735
159,557

Amounts falling due 1-2 years

Bank loans
140,833
270,833
140,833
270,833

Other loans
287,555
-
287,555
-


428,388
270,833
428,388
270,833



731,123
430,390
731,123
430,390


Page 37

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets measured at fair value through profit or loss

Forward contracts
8,212
-
8,212
-


Financial liabilities measured at fair value through profit or loss

Forward contracts
-
(23,654)
-
(23,654)


Derivative financial instruments measured at fair value through profit or loss are not traded in active markets. These have been fair valued using observable forward exchange rates and interest rates corresponding to the maturity of the contract.

Page 38

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Deferred taxation


Group



2024


£






1 April 2023
21,650



31 March 2024
21,650

Company


2024


£






1 April 2023
21,650



31 March 2024
21,650

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Short term timing differences
21,650
21,650
21,650
21,650

21,650
21,650
21,650
21,650


23.


Provisions


Group



Dilapidations

£





At 1 April 2023
461,746



At 31 March 2024
461,746

Page 39

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           23.Provisions (continued)

Company


Dilapidation
Subsidiary stock returns
Total

£
£
£





At 1 April 2023
461,746
1,120,591
1,582,337


Charged to profit or loss
-
(54,190)
(54,190)



At 31 March 2024
461,746
1,066,401
1,528,147


24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50,383 (2023 - 50,383) Ordinary shares of £1.00 each
50,383
50,383



25.


Reserves

Share premium account

This reserve is used to record contributions received for ordinary shares in excess of the par value of the shares.

Foreign exchange reserve

Reserves arising from the translation of foreign subsidiaries due to movement in exchange rates from initial recognition to the balance sheet date.

Profit and loss account

This reserve is used to record the accumulated distributable profits and losses realised during the course of the year.


26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £98,231 (2023 - £100,616). Contributions totalling £13,754 (2023: £12,094) were payable to the fund at the balance sheet date. 

Page 40

 
ESKANDAR LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

27.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
637,000
637,000
92,000
92,000

Later than 1 year and not later than 5 years
1,364,000
1,456,000
184,000
276,000

Later than 5 years
73,750
368,750
-
-

2,074,750
2,461,750
276,000
368,000


28.


Related party transactions

In previous periods the Company made loans to Eskandar US Corporation LLC, a company controlled by E Nabavi. The amount receivable at the balance sheet from Eskandar US Corporation LLC was £1,397,921 (2023: £1,533,371). The loan is unsecured, interest free and repayable on demand. 

The Company paid dividends of £327,404 (2023: £604,028) to E Nabavi during the year. 

The Group was charged rent of £110.000 (2023: £87,500) during the year on a commercial basis for a property owned by E Nabavi

At the year end there was a balance owed to E Nabavi of £226,834 (2023: £12,834). 

The ultimate controlling party is E. Nabavi.


29.


Post balance sheet events

The Company's Los Angeles store, which operates through Eskandar Los Angeles LLC, was closed in October 2024. This should result in savings of around £150,000 per annum.

 
Page 41