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REGISTERED NUMBER: 01121605 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024

FOR

VIRANI FOOD PRODUCTS LIMITED

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Financial Statements 11


VIRANI FOOD PRODUCTS LIMITED

COMPANY INFORMATION
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024







DIRECTORS: Mr N D Shah
Mr M N Shah
Mr T J Shah
Mr M Russell



SECRETARY: Mr A Chhag



REGISTERED OFFICE: 4-5 Midland Business Units
Finedon Road
Wellingborough
Northamptonshire
NN8 4AD



REGISTERED NUMBER: 01121605 (England and Wales)



AUDITORS: PSJ Alexander & Co
Chartered Accountants & Statutory Auditors
1 Doughty Street
London
WC1N 2PH



BANKERS: HSBC Bank plc
South Midlands Corporate Banking Centre
Quadra, 500 Pavilion Drive
Northampton Business Park
Northampton
NN4 7YJ



SOLICITORS: Shoosmiths
The Lakes
Bedford Road
Northampton
NN4 7SH

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

STRATEGIC REPORT
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


The directors present their strategic report for the period 31st July 2023 to 28th July 2024.

REVIEW OF BUSINESS
The company has generally maintained its margin through the period against an enduring tough grocery trading environment and significant supply chain disruption. It continues to put particular effort into its compliance with food safety regulation and holds globally recognised best practice accreditations. The year has seen yet more efforts towards tighter supply chain risk management and closer supplier partnerships.

During the year, the company has continued operating from two sites. Estate master-planning in anticipation of future growth resulted in a decision to refurbish the manufacturing site and the project is now with professional advisers.

Over the period, the company has worked in partnership with its customers on a pipeline of high-profile retail product launches. The company's herbs, spices and seasonings feature as ingredients in products ranging from ambient sauces to chilled and frozen ready meals. Pulse flours service the growing gluten free and plant-based protein markets. Sales grew by 7.7% over the year.



Results:

2024 2023
£    £   
Turnover 21,398,468 19,882,182
Gross Profit 5,712,198 5,309,204
Profit/(loss) after tax (388,472 ) (414,483 )

PRINCIPAL RISKS AND UNCERTAINTIES
The nature of the company's business is to manage global supply chain risk, within defined boundaries, on behalf of its food industry clientèle. Established systems and controls are in place to mitigate such risks and a comprehensive suite of insurance cover, reviewed periodically, transfers much of the remaining liability.

The company is pro-active in managing the several financial risks it faces. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. A dedicated full-time credit controller is in place, working within tight management systems. The working capital cycle is designed to minimise trade creditors liquidity risk. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the funding requirements to support operational and other activities and the banking facilities available. This activity is supported by regular short-term cash projections and considering the level of liquid assets in relation thereto. Treasury risks, primarily foreign exchange and interest rate risks, are managed by appropriate hedging instruments.

STREAMLINED ENERGY AND CARBON REPORTING
For the past few years, the Company has prioritised sustainability and energy efficiency as a key part of its business ethos, committing to investing in the necessary resources to help achieve a reduction of our carbon footprint across all parts of our business. The business is focused on continuing to carry out an energy reduction programme that will include purchasing electricity from renewable sources and other measures. In particular, a photo voltaic solution is due to be installed at the manufacturing site.

ON BEHALF OF THE BOARD:





Mr M Russell - Director


24th April 2025

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

REPORT OF THE DIRECTORS
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


The directors present their report with the financial statements of the company for the period 31st July 2023 to 28th July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of processing spices and milling flour.

DIVIDENDS
Dividend of £60,000 (£0.06 per share) was paid during the year.

FUTURE DEVELOPMENTS
The Board expects sales of herbs, spices, seasonings and pastes to remain steady in 2024/25, given the product mix and clientèle; however, activity related to pulses and speciality crops (such as flour sales) is due to transfer to Legumology Limited pursuant to an earlier business sale agreement. The company intends to continue its capital expenditure program in order to meet demand in an effective manner, reap efficiencies and facilitate good hygiene.

DIRECTORS
The directors shown below have held office during the whole of the period from 31st July 2023 to the date of this report.

Mr N D Shah
Mr M N Shah
Mr T J Shah
Mr M Russell

GOING CONCERN
The Directors note that for the period ended at the balance sheet date, the Company reported a loss before tax of £388,472, while maintaining net current assets of £3,703,070 and net assets of £4,417,670. Subsequent unaudited management accounts to March 2025 indicate further substantial losses before tax.

These losses in the current financial period are primarily attributable to two causes:
- the final stage of addressing production backlogs that necessitated additional agency staffing and increased costs related to
warehousing, freight, and other operational expenses; and
- the extra cost of tightening technical controls for allergen risk management within the company's supply chain to some of
highest standards in the ingredients sector.

Management has cleared the production backlog, albeit at elevated costs, and has returned to previous excellent levels of order fulfilment. The extra costs of tighter allergen controls will be recouped once sector wide investment in such risk management is reflected in market gross margins.

As with many businesses the Company utilises banking facilities obtained from its bankers. These facilities were renewed in May 2024 and are scheduled for review in April 2025. The Company has maintained open communication with HSBC regarding its financial position and improvement strategies.

The Board notes that approximately 77% of the Company's stock purchases are denominated in foreign currencies, primarily US Dollars and Euros. This significant foreign currency exposure presents additional challenges to the Company, as Sterling can experience volatility against both currencies. Unfavourable exchange rate movements can materially impact the Company's cost base and contribute to margin pressure. To mitigate the inherent risks associated with the significant foreign currency exposure, the Company has established a hedging strategy centred around forward foreign exchange contracts.

After conducting a thorough review of the Company's financial projections, including sensitivity analyses under various scenarios, and considering the measures implemented, the Directors have a strong expectation that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements.

This assessment is based on:
- the Company's substantial net asset position of £4,417,670 as at the balance sheet date;
- cash flow projections indicating good cash generation to the end of the 2024/25 financial year;
- the restoration of excellent levels of service fulfilment;
- early indicators of improved margins in the latest unaudited management accounts;
- the Company's strong relationship with its banking partner;
- continued support from key suppliers.

Despite the recent challenges, the Directors believe that the fundamentals of the business remain sound and that the corrective actions being implemented will return the Company to profitability. The Directors therefore continue to adopt the going concern basis in preparing the financial statements.

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

REPORT OF THE DIRECTORS
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr M Russell - Director


24th April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VIRANI FOOD PRODUCTS LIMITED


Opinion
We have audited the financial statements of Virani Food Products Limited (the 'company') for the period ended 28th July 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28th July 2024 and of its loss for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
We draw attention to Note 2 of the financial statements, which indicates that the company incurred losses before tax of £388,472 for the period ended at the balance sheet date, while reporting net current assets of £3,703,070 and net assets of £4,417,670. As further indicated in Note 2, the Company's unaudited management accounts to March 2025 show further substantial losses before tax. The Company's ability to continue as a going concern is dependent on management being able to successfully implement measures to address the continuing losses and to improve liquidity, as well as on the continued availability of bank support and banking facilities.

Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
VIRANI FOOD PRODUCTS LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations that have a direct effect on the financial statements;
- we enquired with the management team concerning actual and potential litigation and claims, including compliance with
anti-bribery legislation;
- we reviewed the recent FSA Report and other food and hygiene audit reports and enquired with management regarding
compliance with applicable food and hygiene standards;
- we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
- we read minutes of meetings of those charged with governance and of the audit committee;
- we obtained an understanding of any provisions and held discussions with management to understand the basis of
recognition or non-recognition of tax provisions/assets; and
- we addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of
business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Manesh Shah (Senior Statutory Auditor)
for and on behalf of PSJ Alexander & Co
Chartered Accountants & Statutory Auditors
1 Doughty Street
London
WC1N 2PH

28th April 2025

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
Notes £    £   

TURNOVER 4 21,398,468 19,882,182

Cost of sales 15,686,270 14,572,978
GROSS PROFIT 5,712,198 5,309,204

Administrative expenses 5,904,458 5,719,487
(192,260 ) (410,283 )

Other operating income 12,000 12,000
OPERATING LOSS 6 (180,260 ) (398,283 )

Interest receivable and similar income - 2,004
(180,260 ) (396,279 )

Interest payable and similar expenses 7 168,212 92,121
LOSS BEFORE TAXATION (348,472 ) (488,400 )

Tax on loss 8 40,000 (73,917 )
LOSS FOR THE FINANCIAL PERIOD (388,472 ) (414,483 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

(388,472

)
Prior year adjustment (53,000 )
TOTAL COMPREHENSIVE INCOME SINCE
LAST ANNUAL REPORT

(467,483

)

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

BALANCE SHEET
28TH JULY 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 10 859,600 900,855

CURRENT ASSETS
Stocks 11 6,163,197 4,781,261
Debtors 12 4,120,614 4,000,034
Cash at bank 119,661 611,312
10,403,472 9,392,607
CREDITORS
Amounts falling due within one year 13 6,700,402 5,322,320
NET CURRENT ASSETS 3,703,070 4,070,287
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,562,670

4,971,142

PROVISIONS FOR LIABILITIES 17 145,000 105,000
NET ASSETS 4,417,670 4,866,142

CAPITAL AND RESERVES
Called up share capital 18 1,000,000 1,000,000
Share premium 19 380,250 380,250
Capital reserve 19 40,021 40,021
Retained earnings 19 2,997,399 3,445,871
SHAREHOLDERS' FUNDS 4,417,670 4,866,142

The financial statements were approved by the Board of Directors and authorised for issue on 24th April 2025 and were signed on its behalf by:





Mr M Russell - Director


VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024

Called up
share Retained Share Capital Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1st August 2022 1,000,000 3,963,354 380,250 40,021 5,383,625
Prior year adjustment - (53,000 ) - - (53,000 )
As restated 1,000,000 3,910,354 380,250 40,021 5,330,625

Changes in equity
Dividends - (50,000 ) - - (50,000 )
Total comprehensive income - (414,483 ) - - (414,483 )
Balance at 30th July 2023 1,000,000 3,445,871 380,250 40,021 4,866,142

Changes in equity
Dividends - (60,000 ) - - (60,000 )
Total comprehensive income - (388,472 ) - - (388,472 )
Balance at 28th July 2024 1,000,000 2,997,399 380,250 40,021 4,417,670

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

CASH FLOW STATEMENT
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 26 (535,087 ) (44,863 )
Interest paid (168,212 ) (92,121 )
Tax paid - (292,183 )
Net cash from operating activities (703,299 ) (429,167 )

Cash flows from investing activities
Purchase of tangible fixed assets (178,193 ) (298,716 )
Interest received - 2,004
Net cash from investing activities (178,193 ) (296,712 )

Cash flows from financing activities
New loans in year 450,918 590,105
Capital repayments of HP/FL in year (1,077 ) (489 )
Equity dividends paid (60,000 ) (50,000 )
Net cash from financing activities 389,841 539,616

Decrease in cash and cash equivalents (491,651 ) (186,263 )
Cash and cash equivalents at beginning of
period

27

611,312

797,575

Cash and cash equivalents at end of period 27 119,661 611,312

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


1. STATUTORY INFORMATION

Virani Food Products Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern
The financial statements have been prepared on a going concern basis, which assumes the realisation of assets at the values stated in these financial statements and the settlement of liabilities in the normal course of business.

For the financial year ended at the balance sheet date, the Company reported a loss before tax of £388,472, while maintaining net current assets of £3,703,070 and net assets of £4,417,670. Unaudited management accounts to March 2025 indicate a further substantial loss before tax. The loss in the current financial period is primarily attributable to two causes:

- the final stage of addressing production backlogs that necessitated additional agency staffing and increased costs
related to warehousing, freight, and other operational expenses; and
- the extra cost of tightening technical controls for allergen risk management within the company's supply chain to
some of highest standards in the ingredients sector.

Management has cleared the production backlog, albeit at elevated costs, and has returned to previous excellent levels of order fulfilment. The extra costs of tighter allergen controls will be recouped once sector wide investment in such risk management is reflected in market gross margins.

As with many other businesses, the Company utilises bank loans and other bank facilities. The Company's facilities are repayable on demand and subject to annual review - the next review is scheduled in April 2025. The Board is confident that the bank will renew these facilities, based on the Company's longstanding ability to service its debt obligations and meet interest and capital repayment requirements. The Board believes the Company will continue to operate within the current facilities provided by the bank and Company's suppliers.

After evaluating these factors, the Board has a strong expectation that the Company has adequate resources to continue as a going concern. Accordingly, the financial statements have been prepared on this basis. The financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.

The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as on the date of the financial statements. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Information about estimation uncertainties that may have a significant risk of resulting in a material adjustment within the next financial year are:

Tangible fixed assets - the residual values of the fixed assets (excluding land) are reviewed annually after considering the remaining life of the asset and projected disposal values. The estimation of the useful lives is based on historic performance as well as expectation about future use and, therefore, requires a degree of judgement to be applied. The depreciation rates represent management's current best estimate of the useful lives of the assets. A material change in these estimates may significantly impact the carrying values of these assets.

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


3. ACCOUNTING POLICIES - continued

Turnover
Revenue for sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, there is no continuing involvement with the goods, and the amount of revenue can be measured reliably, which can be on the date of shipment or the date of receipt by the customer. Transfer of risks and rewards varies depending on the individual terms of the contract of sale, including the delivery conditions, agreed with the customers.

Revenue is recorded net of trade promotion and discounts, which is recognised as incurred, generally at the time of the sale. Accruals for expected promotion and discount payouts to customer are included as accruals in the Balance Sheet. Revenue is also recorded net of Value Added Tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Property improvement - 10% on cost
Plant and machinery - 15% on cost
Fixtures and fittings - 25% on cost and 15% on cost

Land and assets under construction are not depreciated

Stocks
Stock and work in progress are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow- moving items. Cost is calculated by using the weighted average cost basis, over a 12-month period.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


3. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the scheme.

Forward exchange contracts
Forward exchange contracts are used to hedge foreign currency purchases of goods from overseas suppliers at some time in the future.

Derivative financial instruments are initially measured at fair value on the contract date and are subsequently remeasured to fair value at each reporting date. Changes in the fair value of these derivatives financial instruments are recorded in the profit and loss account.

Fixed assets investments
Fixed assets investments are stated at cost less provision for any permanent diminution in value.

Trade finance
The company has trade receivables financing facilities that are with full recourse. Advances received by the company under the facility with full recourse are shown as bank loans under current liabilities.

4. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
United Kingdom 21,134,716 19,551,101
Europe 250,815 320,706
Rest of the world 12,937 10,375
21,398,468 19,882,182

5. EMPLOYEES AND DIRECTORS
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Wages and salaries 2,366,732 2,191,368
Social security costs 256,167 255,552
Other pension costs 75,264 44,992
2,698,163 2,491,912

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the period was as follows:
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23

Production/Maintenance 33 32
Quality/Hygiene 14 14
Warehouse/Distribution 8 8
Administrative 27 26
82 80

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Directors' remuneration 382,436 347,852
Directors' pension contributions to money purchase schemes 6,059 4,268

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Emoluments etc 117,141 113,601
Pension contributions to money purchase schemes - 1,211

6. OPERATING LOSS

The operating loss is stated after charging:

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Depreciation - owned assets 218,849 184,186
Depreciation - assets on finance leases 599 599
Auditors remuneration 57,575 40,100
Foreign exchange differences 72,984 200,356

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


7. INTEREST PAYABLE AND SIMILAR EXPENSES
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Bank interest 168,212 92,121

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the period was as follows:
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Current tax:
UK corporation tax - (131,917 )

Deferred taxation 40,000 58,000
Tax on loss 40,000 (73,917 )

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Loss before tax (348,472 ) (488,400 )
Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

(87,118

)

(92,796

)

Effects of:
Expenses not deductible for tax purposes 901 935
Capital allowances in excess of depreciation - (35,728 )
Depreciation in excess of capital allowances 8,086 -
Utilisation of tax losses - 33,401
Adjustments to tax charge in respect of previous periods - (4,148 )
R&D enhanced claims (46,154 ) (33,581 )
Tax losses carried forward 124,285 -
Movements in deferred tax provisions 40,000 58,000
Total tax charge/(credit) 40,000 (73,917 )

Carried Forward Tax Losses

At the reporting date, the company has unutilised tax losses of £672,936 (2023:£175,796) available to be utilised against future taxable profits. A deferred tax asset has not been recognised in respect of these losses due to uncertainty over future taxable profits.

Had the deferred tax asset been recognised, it would have been measured at a tax rate of 25%, resulting in a potential deferred tax asset of £168,000. The company will continue to assess the recoverability of these losses in future periods.

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


9. DIVIDENDS
Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Ordinary shares of £1 each
Final 60,000 50,000

10. TANGIBLE FIXED ASSETS
Improvements Fixtures Assets
to Plant and and under
property machinery fittings construction Totals
£    £    £    £    £   
COST
At 31st July 2023 383,233 767,658 740,556 31,065 1,922,512
Additions - 22,068 39,958 116,167 178,193
Reclassification/transfer - 40,199 57,508 (97,707 ) -
At 28th July 2024 383,233 829,925 838,022 49,525 2,100,705
DEPRECIATION
At 31st July 2023 171,430 277,419 572,808 - 1,021,657
Charge for period 38,324 103,310 77,814 - 219,448
At 28th July 2024 209,754 380,729 650,622 - 1,241,105
NET BOOK VALUE
At 28th July 2024 173,479 449,196 187,400 49,525 859,600
At 30th July 2023 211,803 490,239 167,748 31,065 900,855

Fixed assets, included in the above, which are held under finance leases are as follows:
Fixtures
and
fittings
£   
COST
At 31st July 2023
and 28th July 2024 2,395
DEPRECIATION
At 31st July 2023 599
Charge for period 599
At 28th July 2024 1,198
NET BOOK VALUE
At 28th July 2024 1,197
At 30th July 2023 1,796

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


11. STOCKS
2024 2023
£    £   
Raw materials 5,282,343 3,776,492
Work-in-progress 19,881 80,073
Finished goods 860,973 924,696
6,163,197 4,781,261

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,586,732 3,503,650
Other debtors 5,645 3,840
Taxation 294,200 294,200
VAT 53,715 36,729
Prepayments and accrued income 180,322 161,615
4,120,614 4,000,034

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) 2,656,586 2,205,668
Finance leases (see note 15) 829 1,906
Trade creditors 3,610,864 2,450,517
Social security and other taxes 85,581 87,821
Other creditors 31,307 27,031
Derivative liabilities 124,115 191,763
Accrued expenses 191,120 357,614
6,700,402 5,322,320

14. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Invoice Financing 2,656,586 2,205,668

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
2024 2023
£    £   
Net obligations repayable:
Within one year 829 1,906

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 156,604 156,604
Between one and five years 412,500 562,500
569,104 719,104

The commitments under non-cancellable operating leases mentioned above relate to one of the properties used by the Company.

In addition, there is a licence to use agreement with a related company in connection to another property and few plant and machineries utilised by the Company. There is no commitment under the licence to use agreement and the management recharges paid to the related company are disclosed in the related party disclosures note.

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 2,656,586 2,205,668
Finance leases 829 1,906
2,657,415 2,207,574

Finance lease creditors are secured on the assets to which they relate.

The banking facilities are secured by a fixed and floating charge over its book debt and all other assets and undertakings of the company. Two other companies, with common directors and shareholders, have also provided securities to HSBC Bank plc for the facilities utilised by the Company.

The company has, to-date, been able to service the bank debt and the Board believes that the company will continue to operate within the currently available facilities, most recently reviewed in May 2024.

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 145,000 149,000
Tax losses carried forward - (44,000 )
145,000 105,000

Deferred
tax
£   
Balance at 31st July 2023 105,000
Charge to Statement of Comprehensive Income during period 40,000
Balance at 28th July 2024 145,000

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000,000 Ordinary £1 1,000,000 1,000,000

19. RESERVES
Retained Share Capital
earnings premium reserve Totals
£    £    £    £   

At 31st July 2023 3,445,871 380,250 40,021 3,866,142
Deficit for the period (388,472 ) (388,472 )
Dividends (60,000 ) (60,000 )
At 28th July 2024 2,997,399 380,250 40,021 3,417,670

20. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the scheme.

21. CONTINGENT LIABILITIES

The company is currently engaged in a dispute with a customer over the supply of goods that are alleged not to have complied with the relevant specification. The company is engaging actively with the other party to understand the basis for and extent of its liability (if any). It has notified its insurers and expects that, in the event that liability is established against it in respect of this dispute, it will be able to make a recovery of a proportion of the sums claimed by its customer from its insurance cover. At present, it is uncertain if the company will be liable at all; but in case it is, there is uncertainty of the amount of the liability and what portion is likely to be met by at least one of the company's insurers

22. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 19,473 91,369

23. OTHER FINANCIAL COMMITMENTS

As at 30th July 2024, the company had financial commitments to purchase USD 11,878,594 and EUR 3,916,809 arising from forward exchange rate agreements.

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


24. RELATED PARTY DISCLOSURES

The Company undertook the following transactions with a company in which Mr T. Shah is a director and shareholder:
2024 2023
£    £   
Sale of goods at arm's length 177,168 157,920
Amount due from related party at balance sheet date 16,351 30,969

The Company also undertook the following transactions with two other companies with common directors and/or shareholders ("the related companies"):
2024 2023
£    £   
Sales made to the related companies 1,276,212 1,441,460
Recharges for use of property and plant & machinery by the related companies 426,186 475,070
Expense recharges to the related companies 181,576 -
Royalty payments to the related companies 15,557 16,000
Management charges receipts from the related companies 12,000 12,000

Net amounts due from / (to) the related companies at balance sheet date (79,165 ) 27,868

The related companies have also provided cross-guaranties as security to HSBC Bank plc in respect to banking facilities utilised by the Company. There is also a right to set-off with the related companies.

25. ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party throughout the current and previous year.

26. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period Period
31/7/23 1/8/22
to to
28/7/24 30/7/23
£    £   
Loss before taxation (348,472 ) (488,400 )
Depreciation charges 219,448 184,785
Profit/loss on derivatives (67,648 ) 422,203
Finance costs 168,212 92,121
Finance income - (2,004 )
(28,460 ) 208,705
(Increase)/decrease in stocks (1,381,936 ) 96,010
(Increase)/decrease in trade and other debtors (120,580 ) 125,484
Increase/(decrease) in trade and other creditors 995,889 (475,062 )
Cash generated from operations (535,087 ) (44,863 )

VIRANI FOOD PRODUCTS LIMITED (REGISTERED NUMBER: 01121605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 31ST JULY 2023 TO 28TH JULY 2024


27. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 28th July 2024
28/7/24 31/7/23
£    £   
Cash and cash equivalents 119,661 611,312
Period ended 30th July 2023
30/7/23 1/8/22
£    £   
Cash and cash equivalents 611,312 797,575


28. ANALYSIS OF CHANGES IN NET DEBT

At 31/7/23 Cash flow At 28/7/24
£    £    £   
Net cash
Cash at bank 611,312 (491,651 ) 119,661
611,312 (491,651 ) 119,661
Debt
Finance leases (1,906 ) 1,077 (829 )
Debts falling due within 1 year (2,205,668 ) (450,918 ) (2,656,586 )
(2,207,574 ) (449,841 ) (2,657,415 )
Total (1,596,262 ) (941,492 ) (2,537,754 )