Company registration number 07204858 (England and Wales)
TOKYO FABRIC INT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
TOKYO FABRIC INT LIMITED
COMPANY INFORMATION
Directors
Mr Tarsem Singh Sandhu
Mr Sukhvinder Singh Sandhu
Mr Jagdeep Singh Sandhu
Secretary
Mr Sukhvinder Singh Sandhu
Company number
07204858
Registered office
Brookside, Friar Street
Wednesbury
West Midlands
England
WS10 0RE
Auditor
Patara is a trading style of TS Patara & Co Ltd
Enterprise House
352 Bearwood Rd
Bearwood
Birmingham
B66 4ET
Business address
Brookside, Friar Street
Wednesbury
West Midlands
England
WS10 0RE
TOKYO FABRIC INT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
TOKYO FABRIC INT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Review of the business

Upholstery fabric material is imported from China. The raw material is treated for fire resistance in England according to British standards before distribution to customers in the United Kingdom and abroad. The business is growing by organic growth due to the high standard of fire resistant material produced by the Company.

Principal risks and uncertainties

The major risk to the business is the volatile fluctuation in the US Dollar's exchange rate which can affect the cost of materials. The Directors keep a close eye on the exchange rate as well as the exchange rate margin agreed with the bank.

The Company is exposed to possible introduction of tariffs by certain oversea countries which may increase the cost of imported material and hence lower the profit margin.

The Company manages it credit risk by insurance cover and having enough cash in the bank to cover any risk in the short to medium term.

Development and performance

The turnover, gross profit margin and operating profit h as increased during the year, due to the increase in the market demand, favourable exchange rate and reduced net overhead.

The company is still keeping its high standard of products being produced by selective purchases of quality of material.

Key performance indicators

The overall financial operating position of the business has improved compared to the previous year as follows:

Turnover increased by 14.63% (202 4: 8% ) and gross profit increased by 1.13% (202 4: decreased 6% ).

Operating profit has increased by 79.70% (202 4: decreased by 55%)

The increase in turnover signals robust market demand. This revenue growth was supported by stable core production costs, as reflected in a slight 1.13% increment of the gross profit margin. The increase in operating profit was primarily driven by foreign exchange gain realized while purchasing raw materials credited within administrative expenses and significantly reduced net overhead.

Other performance indicators

The Company prides itself in providing quality material and personal relationship with existing customers. The Company is always exploring avenues in building customer portfolio via existing contacts.

On behalf of the board

Mr Tarsem Singh Sandhu
Director
19 August 2026
TOKYO FABRIC INT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of wholesale of fabric textiles.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £18,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Tarsem Singh Sandhu
Mr Sukhvinder Singh Sandhu
Mr Jagdeep Singh Sandhu
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Research and development

The Company is always looking at method of improving its processing procedures in order to enhance the quality of the material produced.

Post reporting date events

There are no material post reporting date events.

Future developments

The Company is looking for organic growth

Auditor

Patara is a trading style of TS Patara & Co Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr Tarsem Singh Sandhu
Director
19 August 2026
TOKYO FABRIC INT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

- 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.

TOKYO FABRIC INT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOKYO FABRIC INT LIMITED
- 4 -
Opinion

We have audited the financial statements of Tokyo Fabric Int Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 March 2025 and of its profit 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

TOKYO FABRIC INT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOKYO FABRIC INT LIMITED (CONTINUED)
- 5 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

TOKYO FABRIC INT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOKYO FABRIC INT LIMITED (CONTINUED)
- 6 -

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacture of clothing sector.

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

TOKYO FABRIC INT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TOKYO FABRIC INT LIMITED (CONTINUED)
- 7 -
Talwinder Patara BSc(Hons) BFP FCA FRSA (Senior Statutory Auditor)
For and on behalf of Patara is a trading style of TS Patara & Co Ltd, Statutory Auditor
ICAEW - Chartered Accountants
Enterprise House
352 Bearwood Rd
Bearwood
Birmingham
B66 4ET
19 August 2026
TOKYO FABRIC INT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
30,361,369
26,484,209
Cost of sales
(25,934,021)
(22,922,674)
Gross profit
4,427,348
3,561,535
Distribution costs
(91,074)
(121,708)
Administrative expenses
(1,788,924)
(2,022,272)
Operating profit
4
2,547,350
1,417,555
Interest receivable and similar income
7
385,107
150,204
Profit before taxation
2,932,457
1,567,759
Tax on profit
8
(733,114)
(391,939)
Profit for the financial year
2,199,343
1,175,820

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TOKYO FABRIC INT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
£
£
Profit for the year
2,199,343
1,175,820
Other comprehensive income
-
-
Total comprehensive income for the year
2,199,343
1,175,820
TOKYO FABRIC INT LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
661,567
693,539
Current assets
Stocks
11
830,283
892,546
Debtors
12
3,779,107
3,373,546
Cash at bank and in hand
13,401,380
8,308,508
18,010,770
12,574,600
Creditors: amounts falling due within one year
13
(9,312,557)
(6,086,710)
Net current assets
8,698,213
6,487,890
Total assets less current liabilities
9,359,780
7,181,429
Provisions for liabilities
Deferred tax liability
15
142,607
145,599
(142,607)
(145,599)
Net assets
9,217,173
7,035,830
Capital and reserves
Called up share capital
17
5,000
5,000
Profit and loss reserves
9,212,173
7,030,830
Total equity
9,217,173
7,035,830

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 August 2026 and are signed on its behalf by:
Mr Tarsem Singh Sandhu
Director
Company registration number 07204858 (England and Wales)
TOKYO FABRIC INT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
5,000
5,863,510
5,868,510
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,175,820
1,175,820
Dividends
9
-
(8,500)
(8,500)
Balance at 31 March 2024
5,000
7,030,830
7,035,830
Year ended 31 March 2025:
Profit and total comprehensive income
-
2,199,343
2,199,343
Dividends
9
-
(18,000)
(18,000)
Balance at 31 March 2025
5,000
9,212,173
9,217,173
TOKYO FABRIC INT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,165,942
3,249,558
Income taxes paid
(336,085)
(610,361)
Net cash inflow from operating activities
4,829,857
2,639,197
Investing activities
Purchase of tangible fixed assets
(117,507)
(348,686)
Proceeds from disposal of tangible fixed assets
5,995
-
0
Interest received
385,107
150,204
Net cash generated from/(used in) investing activities
273,595
(198,482)
Financing activities
Dividends paid
(18,000)
(8,500)
Net cash used in financing activities
(18,000)
(8,500)
Net increase in cash and cash equivalents
5,085,452
2,432,215
Cash and cash equivalents at beginning of year
8,306,759
5,874,544
Cash and cash equivalents at end of year
13,392,211
8,306,759
Relating to:
Cash at bank and in hand
13,401,380
8,308,508
Bank overdrafts included in creditors payable within one year
(9,169)
(1,749)
TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
1
Accounting policies
Company information

Tokyo Fabric Int Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brookside, Friar Street, Wednesbury, West Midlands, England, WS10 0RE.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other income

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
15% Reducing balance
Motor vehicles
25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 17 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by geographical market
UK
26,504,065
22,767,939
Rest of the World
3,857,304
3,716,270
30,361,369
26,484,209
2025
2024
£
£
Other revenue
Interest income
385,107
150,204
TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(248,472)
218,652
Fees payable to the company's auditor for the audit of the company's financial statements
12,500
6,500
Depreciation of tangible fixed assets
133,167
156,547
Loss on disposal of tangible fixed assets
10,317
-
Operating lease charges
405
540
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Administration
5
5
Distribution
4
4
Marketing
1
1
Sales
5
5
Total
15
15

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
347,776
282,409
Social security costs
26,879
20,560
Pension costs
6,012
10,008
380,667
312,977
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
82,021
64,797
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
385,107
150,204
TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
7
Interest receivable and similar income
(Continued)
- 19 -
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
385,107
150,204
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
736,106
345,430
Deferred tax
Origination and reversal of timing differences
(2,992)
46,509
Total tax charge
733,114
391,939

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
2,932,457
1,567,759
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
733,114
391,940
Depreciation charge
33,292
39,137
Capital allowance
(32,880)
(85,646)
Deffered tax
(2,992)
46,509
Loss on sale of Fixed assets
2,579
-
0
Taxation charge for the year
733,113
391,940
Taxation charge in the financial statements
733,114
391,939
9
Dividends
2025
2024
£
£
Interim paid
18,000
8,500
TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
10
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2024
900,880
493,324
1,394,204
Additions
31,522
85,985
117,507
Disposals
-
0
(29,000)
(29,000)
At 31 March 2025
932,402
550,309
1,482,711
Depreciation and impairment
At 1 April 2024
425,092
275,573
700,665
Depreciation charged in the year
75,392
57,775
133,167
Eliminated in respect of disposals
-
0
(12,688)
(12,688)
At 31 March 2025
500,484
320,660
821,144
Carrying amount
At 31 March 2025
431,918
229,649
661,567
At 31 March 2024
475,788
217,751
693,539
11
Stocks
2025
2024
£
£
Finished goods and goods for resale
830,283
892,546
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,779,107
3,354,163
Other debtors
-
0
19,383
3,779,107
3,373,546
TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
14
9,169
1,749
Trade creditors
7,496,547
5,061,579
Corporation tax
736,106
336,085
Other taxation and social security
1,025,769
649,372
Other creditors
26,466
22,541
Accruals and deferred income
18,500
15,384
9,312,557
6,086,710
14
Loans and overdrafts
2025
2024
£
£
Bank overdrafts
9,169
1,749
Payable within one year
9,169
1,749
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
142,607
145,599
2025
Movements in the year:
£
Liability at 1 April 2024
145,599
Credit to profit or loss
(2,992)
Liability at 31 March 2025
142,607

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,012
10,008

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
5,000
5,000
5,000
5,000
18
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

1. During the year Company paid rent of £4 6 0,000 (202 4: £460,000) to Tokyo Fabric Printing Ltd. T S Sandhu,

Director is a 50% shareholder.

2. During the year the Company purchased services of £7,708,061 (202 4: £7,708,061) from Premier

FR Limited.

3. At 31st March 202 5 the amount due from Premier FR Ltd was £Nil (202 4:£Nil).

4. At 31st March 202 5 the amount due to Premier FR Ltd is £3,313,497(2023: £1,643,763).

5. Mr. T S Sandhu and Mr. S S Sandhu, Directors respectively hold 2/3 and 1/3 shareholdings in Premier FR

Ltd.

19
Directors' transactions

Dividends totalling £18,000 (2024 - £8,500) were paid in the year in respect of shares held by the company's directors.

20
Ultimate controlling party

The company is under the ultimate control of Mr. Tarsem S Sandhu - Director and shareholder.

TOKYO FABRIC INT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
21
Cash generated from operations
2025
2024
£
£
Profit after taxation
2,199,343
1,175,820
Adjustments for:
Taxation charged
733,114
391,939
Investment income
(385,107)
(150,204)
Loss on disposal of tangible fixed assets
10,317
-
Depreciation and impairment of tangible fixed assets
133,167
156,547
Movements in working capital:
Decrease/(increase) in stocks
62,263
(230,307)
(Increase)/decrease in debtors
(405,561)
105,814
Increase in creditors
2,818,406
1,799,949
Cash generated from operations
5,165,942
3,249,558
22
Analysis of changes in net funds
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
8,308,508
5,092,872
13,401,380
Bank overdrafts
(1,749)
(7,420)
(9,169)
8,306,759
5,085,452
13,392,211
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