Pagarani International Limited

	Page
Company Information	1
Strategic Report	2
Directors' Report	3—4
Independent Auditor's Report	5—8
Consolidated Profit and Loss Account	9
Consolidated Statement of Comprehensive Income	10
Consolidated Balance Sheet	11—12
Company Balance Sheet	13—14
Consolidated Statement of Changes in Equity	15
Company Statement of Changes in Equity	16
Consolidated Cash Flow Statement	17
Notes to the Consolidated Cash Flow Statement	18
Company Cash Flow Statement	19
Notes to the Company Cash Flow Statement	20
Notes to the Financial Statements	21—30

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Strategic Report

For The Year Ended 30 September 2024

Strategic Report

The directors present their strategic report for the year ended 30 September 2024.

Principal Activity

The group's principal activity continues to be that of a wholesaler of nuts, dried fruits, seeds and spices.

Review of the Business

During the financial year ended 30 September 2024, the group achieved a strong performance.

Group turnover increased by 17% to £14,415,636 (2023: £12,271,169). Gross profit improved significantly to £1,420,579 (2023: £818,988), with operating profit rising to £1,225,917 (2023: £684,672).

The group recorded a net profit after tax of £964,396, up from £554,318 in the previous year. Cash reserves remained healthy at £2,002,773, ensuring strong liquidity and enabling the business to self-finance its operations without external borrowing.

The group also undertook a share buyback of £400,000, reflecting confidence in long-term value creation.

The directors consider the results achieved to be satisfactory and are pleased with the trading performance during the year.

Principal Risks and Uncertainties

The directors are mindful of several risks and uncertainties that may impact the group’s operations:

Commodity Price Volatility: Prices of core products such as nuts and spices are subject to seasonal and geopolitical influences. The group mitigates this through long-term supplier relationships and diversified sourcing.
Foreign Exchange Risk: As a portion of purchases is made in foreign currencies, exchange rate fluctuations can affect margins. The group monitors FX exposure closely and uses natural hedging where possible.
Supply Chain Disruption: Logistics delays or port congestion can affect delivery timelines. The group maintains safety stock levels and multi-modal transport options to manage this risk.
Inflation and Cost Pressure: Rising freight, labour, and storage costs are being monitored closely, with proactive cost control measures in place.

On behalf of the board

Mr Mahesh Pagarani

Director

12 December 2025

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Pagarani International Limited

Company No. 03544618

Directors' Report For The Year Ended 30 September 2024

Directors' Report

The directors present their report and the financial statements for the year ended 30 September 2024.

Future Developments

The directors remain cautiously optimistic for the year ahead. While global economic uncertainty continues, the group is well-positioned due to its:

Resilient supply chain strategy;
Healthy cash position;
Strong customer relationships;
Ongoing investment in operations and product development.

Focus will remain on expanding market share, introducing premium product lines, and maintaining disciplined financial management.

Directors

The directors who held office during the year were as follows:

Mrs Tara Pagarani

Mr Mohan Pagarani

Mr Mahesh Pagarani

Statement of Directors' Responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
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 and group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Pagarani International Limited

Directors' Report (continued)

For The Year Ended 30 September 2024

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company and group's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company and group's auditors are aware of that information.

Independent Auditors

The auditors, Lawrence & Co, have been appointed and a resolution concerning their appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr Mahesh Pagarani

Director

12 December 2025

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Independent Auditor's Report

to the Members of

Pagarani International Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Pagarani International Limited (the "parent company") and its subsidiaries (the "group") for the year ended 30 September 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes of Equity, Company Statement of Changes of Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 30 September 2024 and of the group's profit/(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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions Relating to Going Concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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Independent Auditor's Report (continued)

to the Members of

Pagarani International Limited

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept 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 or returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group and 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor's Report (continued)

to the Members of

Pagarani International Limited

Auditor's Responsibilities for the Audit of the Financial Statements

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

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

In identifying and assessing the risks of material misstatement arising from irregularities, including fraud, we obtained an understanding of the group’s operations, sector-specific risks and the legal and regulatory frameworks applicable to both the wholesale trading business and the residential property rental subsidiary. This included consideration of risks relating to manipulation of revenue, completeness of import purchases, inventory completeness and valuation, and the completeness of rental income and related compliance requirements.
We assessed how management identifies and monitors risks of fraud and non-compliance, and evaluated the control environment and governance arrangements in place across the group. We held discussions with management and those charged with governance about their processes for preventing and detecting irregularities, oversight responsibilities and any known or suspected instances of fraud.
Our audit procedures included evaluating the design and implementation of key controls, performing journal entry testing with a focus on areas susceptible to management override, and reviewing accounting estimates and judgements for indicators of potential bias. We performed substantive testing over trading revenue, purchase and import transactions, inventory balances, and rental income, supported by analytical procedures tailored to the nature and scale of each component. We reviewed compliance with VAT, import-related requirements, and landlord obligations relevant to the rental subsidiary.
Our audit approach is designed to provide reasonable assurance. This means it is not a guarantee that all irregularities, including fraud, will be detected. The risk of non-detection is higher where irregularities involve collusion, management override, intentional misstatement or non-compliance with law and regulation that is more difficult to identify.

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

Use Of Our Report

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

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Independent Auditor's Report (continued)

to the Members of

Pagarani International Limited

Jay Chatwani (Senior Statutory Auditor)

for and on behalf of Lawrence & Co , Statutory Auditor

12 December 2025

Lawrence & Co

Unit 205, Cervantes House

5-9 Headstone Road

Harrow

Middlesex

HA1 1PD

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Pagarani International Limited

Consolidated Profit and Loss Account

For The Year Ended 30 September 2024

Consolidated Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER	3	14,415,636	12,271,169
Cost of sales		(12,995,057 )	(11,452,181 )

GROSS PROFIT		1,420,579	818,988

Administrative expenses		(220,109 )	(167,265 )
Other operating income		35,911	42,653

OPERATING PROFIT	5	1,236,381	694,376
Other interest receivable and similar income	10	53,787	16,624

PROFIT BEFORE TAXATION		1,290,168	711,000
Tax on Profit	11	(323,042 )	(156,322 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT		967,126	554,678

The notes on pages 18 to 30 form part of these financial statements.

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Pagarani International Limited

Consolidated Statement of Comprehensive Income

For The Year Ended 30 September 2024

Consolidated Statement of Comprehensive Income

	2024	2023
	£	£
PROFIT FOR THE FINANCIAL YEAR	967,126	554,678
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT	967,126	554,678

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Pagarani International Limited

Consolidated Balance Sheet

As At 30 September 2024

Consolidated Balance Sheet

Registered number: 03544618

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	12		9,335		6,494
Investment Properties	13		435,000		483,076

			444,335		489,570
CURRENT ASSETS
Stocks	15	800,871		694,134
Debtors	16	2,513,333		2,082,624
Cash at bank and in hand		2,002,773		1,944,436

		5,316,977		4,721,194
Creditors: Amounts Falling Due Within One Year	17	(632,674 )		(614,261 )

NET CURRENT ASSETS (LIABILITIES)			4,684,303		4,106,933

TOTAL ASSETS LESS CURRENT LIABILITIES			5,128,638		4,596,503

Creditors: Amounts Falling Due After More Than One Year	18		(7,202 )		(6,136 )

NET ASSETS			5,121,436		4,590,367

CAPITAL AND RESERVES
Called up share capital	19		108,000		120,000
Capital redemption reserve			12,000		-
Fair value reserve			(36,057 )		-
Profit and Loss Account			5,037,493		4,470,367

SHAREHOLDERS' FUNDS			5,121,436		4,590,367

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Pagarani International Limited

Consolidated Balance Sheet (continued)

As At 30 September 2024

On behalf of the board

Mr Mahesh Pagarani

Director

12 December 2025

The notes on pages 18 to 30 form part of these financial statements.

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Pagarani International Limited

Company Balance Sheet

As At 30 September 2024

Company Balance Sheet

Registered number: 03544618

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	12		9,335		6,494
Investments	14		100		100

			9,435		6,594
CURRENT ASSETS
Stocks	15	800,871		694,134
Debtors	16	2,975,322		2,607,797
Cash at bank and in hand		1,998,693		1,893,548

		5,774,886		5,195,479
Creditors: Amounts Falling Due Within One Year	17	(630,274 )		(612,420 )

NET CURRENT ASSETS (LIABILITIES)			5,144,612		4,583,059

TOTAL ASSETS LESS CURRENT LIABILITIES			5,154,047		4,589,653

NET ASSETS			5,154,047		4,589,653

CAPITAL AND RESERVES
Called up share capital	19		108,000		120,000
Capital redemption reserve			12,000		-
Profit and Loss Account			5,034,047		4,469,653

SHAREHOLDERS' FUNDS			5,154,047		4,589,653

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Pagarani International Limited

Company Balance Sheet (continued)

As At 30 September 2024

In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. The company's profit for the year was £ 964,394 after tax (2023: £ 554,318 profit).

On behalf of the board

Mr Mohan Pagarani

Director

12 December 2025

The notes on pages 18 to 30 form part of these financial statements.

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Pagarani International Limited

Consolidated Statement of Changes in Equity

For The Year Ended 30 September 2024

Consolidated Statement of Changes in Equity

	Share Capital	Capital Redemption	Fair value reserve	Profit and Loss Account	Total
	£	£	£	£	£
As at 1 October 2022	120,000	-	-	3,918,089	4,038,089
Profit for the year and total comprehensive income	-	-	-	554,678	554,678

Dividends paid	-	-	-	(2,400)	(2,400)

As at 30 September 2023 and 1 October 2023	120,000	-	-	4,470,367	4,590,367


Profit for the year and total comprehensive income	-	-	-	967,126	967,126

Purchase of own shares	(12,000 )	12,000	-	(400,000 )	(400,000)
Movements in fair value reserve	-	-	(48,076)	-	(48,076)
Deferred taxation on Fair Value	-	-	12,019	-	12,019

As at 30 September 2024	108,000	12,000	(36,057 )	5,037,493	5,121,436

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Pagarani International Limited

Company Statement of Changes in Equity

For The Year Ended 30 September 2024

Company Statement of Changes in Equity

	Share Capital	Capital Redemption	Profit and Loss Account	Total
	£	£	£	£
As at 1 October 2022	120,000	-	3,917,735	4,037,735
Profit for the year and total comprehensive income	-	-	554,318	554,318

Dividends paid	-	-	(2,400)	(2,400)

As at 30 September 2023 and 1 October 2023	120,000	-	4,469,653	4,589,653


Profit for the year and total comprehensive income	-	-	964,394	964,394

Purchase of own shares	(12,000 )	12,000	(400,000 )	(400,000)

As at 30 September 2024	108,000	12,000	5,034,047	5,154,047

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Pagarani International Limited

Consolidated Cash Flow Statement

For The Year Ended 30 September 2024

Consolidated Cash Flow Statement

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	601,246	866,245
Tax paid		(155,912 )	(65,887 )

Net cash generated from operating activities		445,334	800,358

Cash flows from investing activities
Purchase of tangible assets		(4,488 )	(2,577 )
Interest received		53,788	16,624

Net cash generated from investing activities		49,300	14,047

Cash flows from financing activities
Purchase/redemption of own shares		(400,000 )	-
Equity dividends paid		-	(2,400 )
Amount withdrawn by directors		(33,627)	(42,451)

Net cash used in financing activities		(433,627 )	(44,851 )



Increase in cash and cash equivalents		61,007	769,554
Cash and cash equivalents at beginning of year	2	1,944,428	1,172,847
Foreign exchange (losses)/gains on cash and cash equivalents		(2,662 )	2,027

Cash and cash equivalents at end of year	2	2,002,773	1,944,428

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Pagarani International Limited

Notes to the Consolidated Cash Flow Statement

For The Year Ended 30 September 2024

Notes to the Consolidated Cash Flow Statement

1. Reconciliation of profit for the financial year to cash generated from operations

	2024	2023
	£	£
Profit for the financial year	967,126	554,678
Adjustments for:
Tax on profit	323,042	156,322
Interest income	(53,788 )	(16,622 )
Depreciation of tangible assets	1,647	1,146
Foreign exchange losses/(gains)	2,662	(2,027)
Movements in working capital:
(Increase)/decrease in stocks	(106,737 )	71,140
(Increase)/decrease in trade and other debtors	(418,690 )	645,348
Decrease in trade and other creditors	(114,016 )	(543,740 )

Net cash generated from operations	601,246	866,245

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	2,002,773	1,944,436
Overdraft facilities repayable on demand	-	(8 )

Cash and cash equivalents as stated in the Statement of Cash Flows	2,002,773	1,944,428

3. Analysis of changes in net funds

	As at 1 October 2023	Cash flows	As at 30 September 2024
	£	£	£
Cash at bank and in hand	1,944,436	58,337	2,002,773
Overdraft facilities repayable on demand	(8)	8	-

Cash and cash equivalents	1,944,428	58,345	2,002,773

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Pagarani International Limited

Company Cash Flow Statement

For The Year Ended 30 September 2024

Company Cash Flow Statement

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	641,942	847,543
Tax paid		(154,068 )	(64,053 )

Net cash generated from operating activities		487,874	783,490

Cash flows from investing activities
Purchase of tangible assets		(4,488 )	(2,578 )
Interest received		51,621	16,624
Dividends received		7,500	7,500

Net cash generated from investing activities		54,633	21,546

Cash flows from financing activities
Purchase/redemption of own shares		(400,000 )	-
Equity dividends paid		-	(2,400 )
Amount withdrawn by directors		(34,693)	(43,748)

Net cash used in financing activities		(434,693 )	(46,148 )



Increase in cash and cash equivalents		107,814	758,888
Cash and cash equivalents at beginning of year	2	1,893,540	1,132,625
Foreign exchange (losses)/gains on cash and cash equivalents		(2,661 )	2,027

Cash and cash equivalents at end of year	2	1,998,693	1,893,540

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Pagarani International Limited

Notes to the Company Cash Flow Statement

For The Year Ended 30 September 2024

Notes to the Company Cash Flow Statement

1. Reconciliation of profit for the financial year to cash generated from operations

	2024	2023
	£	£
Profit for the financial year	964,394	554,318
Adjustments for:
Tax on profit	320,642	154,478
Interest income	(51,622 )	(16,624 )
Income from shares in group undertakings	(7,500)	(7,500)
Depreciation of tangible assets	1,647	1,146
Foreign exchange losses/(gains)	2,662	(2,027)
Movements in working capital:
(Increase)/decrease in stocks	(106,737 )	71,140
(Increase)/decrease in trade and other debtors	(367,525 )	120,175
Decrease in trade and other creditors	(114,019 )	(27,563 )

Net cash generated from operations	641,942	847,543

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	1,998,693	1,893,548
Overdraft facilities repayable on demand	-	(8 )

Cash and cash equivalents as stated in the Statement of Cash Flows	1,998,693	1,893,540

3. Analysis of changes in net funds

	As at 1 October 2023	Cash flows	As at 30 September 2024
	£	£	£
Cash at bank and in hand	1,893,548	105,145	1,998,693
Overdraft facilities repayable on demand	(8)	8	-

Cash and cash equivalents	1,893,540	105,153	1,998,693

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Pagarani International Limited

Notes to the Financial Statements

For The Year Ended 30 September 2024

Notes to the Financial Statements

1. General Information

Pagarani International Limited is a private company, limited by shares, incorporated in England & Wales, registered number 03544618 . The registered office is Magnolia House, Spring Villa Park, 11 Spring Villa Road, Edgware, HA8 7EB.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

2.2. Basis Of Consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 30 September 2024.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.

Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.

Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

2.3. Business Combinations

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

2.4. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery

15% on Written down value

2.6. Investment Properties

All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

2.7. Investments

Equity investments are measured at fair value through profit and loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measure at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

2.8. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

2.9. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.10. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.11. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

...CONTINUED

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

2.11. Taxation - continued

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.12. Rental Income

Rental income from the investment property is recognised on a straight line basis over the term of the tenancy agreement.

3. Turnover

Analysis of turnover by geographical market is as follows:

	2024	2023
	£	£
United Kingdom	14,415,636	12,271,169

	14,415,636	12,271,169

4. Other Operating Income

	2024	2023
	£	£
Rental income	18,124	16,980
Other operating income	17,787	25,673

	35,911	42,653

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

5. Operating Profit

The operating profit is stated after charging:

	2024	2023
	£	£
Bad debts	26,097	-
Depreciation of tangible fixed assets	1,647	1,146

6. Auditor's Remuneration

Remuneration received by the group's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the group and company's financial statements	23,500	-

7. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Wages and salaries	99,923	89,914	99,923	89,914
Social security costs	2,129	1,147	2,129	1,147
Other pension costs	1,538	1,404	1,538	1,404

	103,590	92,465	103,590	92,465

8. Average Number of Employees

Group

Average number of employees, including directors, during the year was as follows:

	2024	2023
Office and administration	3	3
Sales, marketing and distribution	2	2

	5	5

Company

Average number of employees, including directors, during the year was: 5 (2023: 5)

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

9. Directors' remuneration

	2024	2023
	£	£
Emoluments	58,251	56,574

10. Interest Receivable and Similar Income

	2024	2023
	£	£
Bank interest receivable	51,621	16,624
Interest on short term deposits	2,166	-

	53,787	16,624

11. Tax on Profit

	Tax Rate		2024	2023
The tax charge on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	-	323,452	156,322
Prior period adjustment			(410 )	-

			323,042	156,322


Total tax charge for the period			323,042	156,322


The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			1,290,168	711,000

Tax on profit at 25% (UK standard rate)			323,452	-
Prior period adjustment			(410 )	-

Total tax charge for the period			323,042	-

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

12. Tangible Assets

Group

	Plant & Machinery
	£
Cost or Valuation
As at 1 October 2023	17,037
Additions	4,488

As at 30 September 2024	21,525

Depreciation
As at 1 October 2023	10,543
Provided during the period	1,647

As at 30 September 2024	12,190

Net Book Value
As at 30 September 2024	9,335

As at 1 October 2023	6,494

Company

	Plant & Machinery
	£
Cost
As at 1 October 2023	17,037
Additions	4,488

As at 30 September 2024	21,525

Depreciation
As at 1 October 2023	10,543
Provided during the period	1,647

As at 30 September 2024	12,190

Net Book Value
As at 30 September 2024	9,335

As at 1 October 2023	6,494

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

13. Investment Property

Group

	2024
	£
Fair Value
As at 1 October 2023	483,076
Fair value adjustments	(48,076 )

As at 30 September 2024	435,000

Company

The company had no investment property as at 30 September 2024 or 30 September 2023.

14. Investments

Company

	Other
	£
Cost
As at 1 October 2023	100

As at 30 September 2024	100

Provision
As at 1 October 2023	-

As at 30 September 2024	-

Net Book Value
As at 30 September 2024	100

As at 1 October 2023	100

Subsidiaries

Details of the group's subsidiaries as at 30 September 2024 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Pagarani Properties Ltd	Magnolia House, Spring Villa Park, Edgware HA8 7EB	Ordinary Shares	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

	Capital and Reserves	Profit/(loss)
	£	£
Pagarani Properties Ltd	100	3,443

15. Stocks

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Finished goods	800,871	694,134	800,871	694,134

16. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Due within one year
Trade debtors	1,562,993	1,552,349	1,562,993	1,552,349
Other debtors	938,321	530,274	938,321	530,274

	2,501,314	2,082,623	2,501,314	2,082,623
Due after more than one year
Amounts owed by group undertakings	-	1	474,008	525,174
Other debtors	12,019	-	-	-

	12,019	1	474,008	525,174

	2,513,333	2,082,624	2,975,322	2,607,797

17. Creditors: Amounts Falling Due Within One Year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Trade creditors	-	137,754	-	137,757
Bank loans and overdrafts	-	8	-	8
Other creditors	283,711	318,485	283,711	318,485
Corporation tax	323,452	156,322	321,052	154,478
Taxation and social security	2,011	1,692	2,011	1,692
Accruals and deferred income	23,500	-	23,500	-

	632,674	614,261	630,274	612,420

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Pagarani International Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2024

18. Creditors: Amounts Falling Due After More Than One Year

	Group
	2024	2023
	£	£
Other creditors	7,202	6,136

19. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
108,000 Ordinary Shares of £ 1.00 each	108,000	120,000


Shares disposed during the period:	£
12,000 Ordinary Shares of £ 1.00 each	(12,000)

Capital redemption reserve: £12,000

20. Pension Commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £1,538 (2023: £1,404).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

21. Dividends

	2024	2023
	£	£
On equity shares:
Final dividend paid	-	2,400

22. Related Party Disclosures

During the year, the company repurchased 12,000 ordinary shares from Mr Raj Pagarani, a shareholder, for a total consideration of £400,000. The transaction was conducted at fair value and approved by shareholders. No amounts were outstanding at year-end.

23. Controlling Parties

The company is the parent undertaking of the smallest and largest group for which group financial statements are prepared. The directors consider that there is no single ultimate controlling party, as no individual shareholder has control of the company.

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