REGISTERED NUMBER: |
R.K. AGGARWAL LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
REGISTERED NUMBER: |
R.K. AGGARWAL LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
R.K. AGGARWAL LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
STATUTORY AUDITORS |
Churchgate House |
3 Church Road |
Whitchurch |
Cardiff |
CF14 2DX |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
The directors present their strategic report for the year ended 30 September 2022. |
PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal activity of the company during the year continued to be dispensing chemists, retail chemists and online retailers. |
The directors are not surprised by the results of the group for the year. Despite an annualised growth in sales of 19% increased supplier prices and supply chain issues has made it difficult to maintain margins at historic levels. Margins have been further compromised in order to maintain and grow the customer base, with the company's loyalty scheme being very successful in attracting repeat customers. Stock levels have been increased in order to meet seasonal demand and lock in prices at a lower level. The director's believe this will put the company in good position for future years and forecast that the company will return to profitability in 2023. |
A key strength of the company is its ability to distribute orders efficiently to a large number of customers. This has been enhanced in recent years by its investment in its online sales platform. Details of the companys' performance for the year are set out within this report. |
Uncertainties in the UK economic recovery, including rising inflation, has had a real impact on household disposable income to spend on cosmetics. However, the slight shift in Bank of England's forecast underlines that, slowly and subtly, the economy is showing signs of recovery or at the very least a less bleak outlook than was previously expected. It is therefore anticipated that real household disposable income will remain flat in the near term, rather than falling significantly as had been previously expected. However, when assessing the company's reasonableness of estimates made by the directors, such as recoverability of debtors and related disclosures and the appropriateness of the going concern assumptions are also relevant in the understanding of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Management team continually monitor the key risks facing the company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually. |
The principal risks and uncertainties facing the company are as follows; |
Economic downturn - The company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining. |
Competitive pressure - In the general economic environment is a continuing risk to the company as is the ability of suppliers to keep pace with the competition. The company manages this risk by providing fast response times in fulfilling sales orders and by maintaining strong relationships with key customers and suppliers throughout the world. |
Reliance on key customers - The company' purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The company manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary. |
Loss of key personnel - This would present significant operational difficulties for the company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. |
Financial risk management - The main financial risks arising from the company' activities are credit risk, liquidity risk, foreign exchange risk, interest rate risk and price risk. |
Credit risk - The company limits its exposure to credit risk. It is company policy to assess the credit risk of all customers before entering into a trading relationship and to ensure that credit risk is kept to a minimum. |
Liquidity risk - The operations of the company are financed through robust management of the company' working capital requirement and treasury function. The company' policy to manage liquidity risk and cash flow risk is to ensure that adequate funds are held in readily accessible current accounts to meet the working capital requirements of the company. The directors of the company monitor these risks carefully and, when appropriate, steps are taken to ensure liquidity risk and cash flow risk are reduced. |
Foreign exchange risk - The company sources products from abroad and is therefore subject to foreign exchange movements. This risk is managed by regular and consistent monitoring of exchange rates. |
Price risk - The company does not enter into hedging arrangements and as such is not exposed to price risk. |
Interest rate risk - The company does not have any long term borrowings and is therefore not exposed to interest rate risk as a result of increases in the base interest rate. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
KEY PERFORMANCE INDICATORS |
The directors consider the following key performance indicators of the company: |
Year end 30 September 2022 | Period end 30 September 2021 |
Turnover | £23,970,420 | £25,141,424 |
Gross profit | £2,994,799 | £4,228,930 |
Gross profit margin % | 12.49% | 16.82% |
EBITDA | £(387,275) | £899,193 |
Profit before tax | £(390,975) | £865,626 |
RESEARCH AND DEVELOPMENT |
The company will continue its policy of research and development in order to retain a competitive position in the market. All research and development expenditure is written off to the profit and loss account as it is incurred. |
FUTURE DEVELOPMENTS |
The directors aim to maintain the management policies which have resulted in the development of the company in recent years. They believe the company is well placed in the market and will continue to trade successfully. |
ON BEHALF OF THE BOARD: |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 30 September 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of dispensing chemists, retail chemists and online retailers. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2022. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 October 2021 to the date of this report. |
The directors shown below were in office at 30 September 2022 but did not hold any interest in the Ordinary Shares shares of £1 each at 1 October 2021 or 30 September 2022. |
POLITICAL DONATIONS AND EXPENDITURE |
During the course of the year the following non-political charitable donations have been made. |
- £2,000 to The Hope Foundation UK |
- £600 to St John's Church |
- £56 to Enthuse Prostate |
GOING CONCERN |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, therefore it continues to adopt the going concern basis for accounting in preparing the annual financial statements. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information relating to future developments, principal risks and uncertainties and research and development activities of the company are disclosed within the strategic report. |
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. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, HODGE BAKSHI LIMITED, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.K. AGGARWAL LIMITED |
Opinion |
We have audited the financial statements of R.K. Aggarwal Limited (the 'company') for the year ended 30 September 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 September 2022 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.K. AGGARWAL LIMITED |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.K. AGGARWAL LIMITED |
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: |
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law, health and safety law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and a review of legal and professional spend for the year. |
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- Challenging assumptions and judgments made by management in its significant accounting estimates; and |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
R.K. AGGARWAL LIMITED |
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. |
for and on behalf of |
STATUTORY AUDITORS |
Churchgate House |
3 Church Road |
Whitchurch |
Cardiff |
CF14 2DX |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(453,972 | ) | 486,817 |
Other operating income | 4 |
OPERATING (LOSS)/PROFIT | 6 | ( |
) |
Interest receivable and similar income |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
BALANCE SHEET |
30 SEPTEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 September 2022 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) | ( |
) |
Taxation refund |
Government grants |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Amount introduced by directors | - | 1,508,038 |
Amount withdrawn by directors | (158,946 | ) | (1,309,833 | ) |
Owed from group company | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
6,149,553 |
Cash and cash equivalents at end of year |
2 |
2,505,516 |
4,609,592 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) |
Finance income | (8,470 | ) | (107,579 | ) |
(387,275 | ) | 598,324 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | 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: |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 2,505,516 | 4,609,592 |
Period ended 30 September 2021 |
30.9.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 4,609,592 | 6,149,553 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.21 | Cash flow | At 30.9.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,609,592 | (2,104,076 | ) | 2,505,516 |
4,609,592 | ( |
) | 2,505,516 |
Total | 4,609,592 | (2,104,076 | ) | 2,505,516 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
1. | STATUTORY INFORMATION |
R.K. Aggarwal Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support. |
At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Significant judgements and estimates |
In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Useful economic lives of tangible assets - The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimate based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes for the carrying amount of the tangible fixed assets and accounting policies for the useful economic lives of each class of asset. |
Slow moving and obsolete stock provision - The aging of stock is reviewed periodically by management in conjunction with customer demand and other trends. Based on these indications an assessment of recoverabilty of the value is made and associated provision for obsolete and slow moving stock is recognised. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is provided at the following annual rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives: |
Long leasehold - 2% on cost |
Improvements to property - 2% on cost |
Plant & machinery - 20% on reducing balance |
Fixtures and fittings - 15% on reducing balance |
Motor vehicles - 25% on cost |
Computer equipment - 25% on cost |
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Stocks |
Stocks are stated at the lower cost and estimated selling price less costs to complete and sell. Stocks are recognised as am expense in the period in which the revenue is recognised. |
Cost is determined on a weighted average basis that approximate to a first in, first out (FIFO) method. |
Stock is assessed perpetually for impairment. If an item of stock is impaired, the identified stock is reduced to its estimated selling price less costs to complete and sell and an impairment charge is recognised within the income statement. Where a reversal of the impairment has been recognised the impairment charge is reversed, up to the original impairment loss and is recognised as a credit in the income statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
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 year 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Transactions in currencies, other than the functional currency of the company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme for directors and staff. Pension cost represent amounts payable to the scheme on behalf of the directors and staff in respect of the accounting period. |
Fixed asset investments |
Fixed asset investments are initially recognised at the transactions price and are subsequently remeasured to fair value with reference open market values. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover and revenue recognition |
Sale of goods |
Turnover represent amounts receivable for goods, net of VAT and loyalty scheme discounts. Turnover is recognised on despatch of goods. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the end customer (on despatch). The amount of revenue can be measured reliably, it is probable that the economic benefit associated with the transaction will flow to the entity and costs associated with the respective transaction can be measured reliably. |
NHS Income |
NHS income is recognised in the year to which it relates. |
Rental Income - Turnover is recognised at the fair value of rent received or receivable in the normal course of business. Rental income is recognised in the year which it relates. |
Grants |
Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions are recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised with deferred income. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliable estimated. |
Where there are a number of similar obligations, the likelihood that an outflow of economic benefits will be required in settlement is determined by considering the class of obligation as a whole. A provision is recognised even if the likelihood of an outflow with respect of any one item in the same class of obligations may be small. |
Provisions are not made for future operating losses. |
Provisions are measures at the present value of the cost expected to be required to settle the obligation using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passing of time is recognised as a cost in the income statement. |
Contingent liabilities |
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when: |
- It is not probable that there will be an outflow of economic resources or that the amount cannot be reliably measured at the reporting date; |
- When the existence will be confirmed by the occurrence or non-occurrence of the uncertain future vents not wholly within the company's control. |
Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of economic resource is remote. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of future economic benefits is probable. |
Cash & Cash equivalents |
Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Financial instruments |
The company has elected to apply the provisions of Section 11 "Basic Financial Instruments". |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include trade and other debtors, loans to related companies 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Employee benefits |
Short-term employee benefits are recognised as an expense in the year in which they are incurred. |
The obligation for contribution to the money purchase scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the company in an independent administered fund. |
3. | TURNOVER |
In the opinion of the directors, an analysis of turnover and operating profit by class of business and geographical segment would be significantly prejudicial to the interest of the company. |
4. | OTHER OPERATING INCOME |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Rents received |
Other income |
CJRS |
Other Government Grants |
Profit on sale of tangible fixed assets | 51,831 | - |
54,527 | 271,230 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
5. | EMPLOYEES AND DIRECTORS |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
Retail Staff | 91 | 81 |
Administration | 2 | 2 |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Directors' remuneration |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Rent received | ( |
) |
Rent payable |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax provision | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) | ( |
) |
UK corporation tax has been charged at 19% (2021 - 19%). |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Research & Development claim | - | (123,395 | ) |
Capital allowances | (3,867 | ) | (31,376 | ) |
Deferred tax | (73,147 | ) | (21,801 | ) |
Losses carried forward | 68,767 | - |
Total tax credit | (73,147 | ) | (12,103 | ) |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
8. | DIVIDENDS |
Period |
1.7.20 |
Year Ended | to |
30.9.22 | 30.9.21 |
£ | £ |
Final |
Interim |
9. | TANGIBLE FIXED ASSETS |
Improvements |
Long | to | Plant and |
leasehold | property | machinery |
£ | £ | £ |
COST |
At 1 October 2021 |
Additions |
Disposals |
At 30 September 2022 |
DEPRECIATION |
At 1 October 2021 |
Charge for year |
Eliminated on disposal |
At 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 September 2022 |
DEPRECIATION |
At 1 October 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST OR VALUATION |
At 1 October 2021 |
and 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
Cost or valuation at 30 September 2022 is represented by: |
Unlisted |
investments |
£ |
Cost | 15,900 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
11. | STOCKS |
2022 | 2021 |
£ | £ |
Stock of goods for resale |
Stocks are stated after provisions for impairment of £400,823 (2021: £314,717). |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Trade Debtors | 503,483 | 363,231 |
Directors' current accounts | 141,820 | - |
Tax |
VAT |
Deferred tax asset | 54,123 | - |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Other Creditors | 94,200 | 111,613 |
PAYE and Other Taxes | - | 49,068 |
Accruals | 91,207 | 56,019 |
Amounts owed to participating interests | 3,419,643 | 4,563,071 |
Directors' current accounts | - | 17,126 |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
15. | PROVISIONS FOR LIABILITIES |
2021 |
£ |
Deferred tax provision | 19,024 |
Deferred |
tax |
£ |
Balance at 1 October 2021 |
Accelerated capital allowances | 17,336 |
Deferred tax on losses | (90,483 | ) |
Balance at 30 September 2022 | ( |
) |
The deferred tax account consists of the tax effect of timing differences in respect of; |
2022 | 2021 |
£ | £ |
Accelerated capital allowances | 36,360 | 19,024 |
Taxable losses | (90,483 | ) | - |
(54,123 | ) | 19,024 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary Shares | £1 | 100 | 100 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 October 2021 |
Deficit for the year | ( |
) |
At 30 September 2022 |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the year ended 30 September 2022 and the period ended 30 September 2021: |
2022 | 2021 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced | ( |
) | ( |
) |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Balance outstanding at start of year | ( |
) |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The loan balances are interest free and repayable on demand. |
19. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemptions available under FRS 102 section 33.1 A and has not disclosed all transactions with its parent company RKA Cardiff Holdings Limited but only those pertaining to the restructuring of the group which occured during the previous period. |
The company has paid rent amounting to £60,000 (2021 - £75,000) to the directors for occupying properties owned by them. |
The company has also paid rent amounting to £10,000 (2021 - £10,000) to the pension fund operated for the benefit of the directors. Included within creditors falling due within one year is £30,178 (2021 - £50,351) owed by the company. |
Included in creditors is £13,520 (2021 - £14,434) owed to a company in which the directors are shareholders and directors.The loan is interest free and repayable on demand. |
During the previous year R.K. Aggarwal Limited was subject to a capital demerger that involved the creation of a new holding company, RKA Cardiff Holdings Limited, and a separate investment company, RKA Cardiff Investments Limited. Investments assets were transferred to RKA Cardiff Investments Limited totalling £8,886,824 as part of a dividend in-specie. |
As at the 30 September 2022 an amount of £3,412,725 (2021 - £4,548,636) was due to RKA Cardiff Investments Limited. The amount is not interest bearing and considered to be repayable on demand. The relationship is that of common ownership and control. |
R.K. AGGARWAL LIMITED (REGISTERED NUMBER: 02031097) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2022 |
During the year, a total of key management personnel compensation of £ |
20. | ULTIMATE CONTROLLING PARTY |
The controlling party is R K Aggarwal. |