Company registration number 05957569 (England and Wales)
AKAAL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
AKAAL GROUP LIMITED
COMPANY INFORMATION
Directors
Mr R S Manak
Mrs H K Manak
Secretary
Ms T Barrett
Company number
05957569
Registered office
2nd Floor (Right) Downe House
303 High Street
Orpington
Kent, England
BR6 0NN
Auditor
Perrys Audit Limited
Chartered Accountants
4th Floor
399-401 Strand
London
WC2R 0LT
AKAAL GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Profit and loss account
6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 31
Independent auditor's report
32 - 34
AKAAL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
The group continues to provide full external façade packages including cladding, windows, structural and architectural metalworks and internal plastering drylining works. The group has in-house design and manufacturing facilities. It is a specialist business combining design, direct procurement of raw materials, fabrication and site installations on a wide variety of construction projects.
The group’s order book remains healthy and turnover is expected to rise in the coming year.
The group will continue to invest in freehold land and buildings both to provide office, factory and warehouse space for its own operations and as investments.
The group continues to inspire development and leadership in its sector by providing innovative measures including Quality Assurance procedures, internal management training programs and continually, strives to improve its financial system to mitigate all wasted costs.
Principal risks and uncertainties
As the country continues to return to more normal trading conditions after the impacts of COVID-19, the principal risks are the unpredictability of the economy and its effect on the new housing market.
In an unpredictable economy the group feels that it is in a strong position to make decisions quickly to protect itself, its workforce and its clients and has sufficient financial resources to allow it to continue.
The group has always taken care to build close relationships with both its clients and its supply chain and whilst it will not be able to avoid some of the inflationary aspects it believes that, by having these relationships, it will be in a position to maintain the supply of materials and labour. The group will continue to improve efficiencies in its processes and in its buying decisions.
The group is of a size and has a sound financial base which together with its experience and knowledge enables it to deliver high quality work on contracts of all sizes. Having been trading for nearly 65 years it has weathered a number of recessions coming back stronger each time.
Exposure to liquidity, credit, cash flow and interest rate risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the group’s debtors including retentions are shown in Note 18 to the financial statements. The group’s clients are well recognised ‘Blue Chip’ companies and the debtors are well spread over these clients.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations, and by applying rigorous procedures for settling final accounts and collecting debtors as they fall due, including retentions.
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability, such as future interest payments on a variable rate debt. The group managers this risk by ensuring that there are sufficient ongoing cash reserves to meet obligations.
AKAAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Development and performance
The group’s turnover has increased in the year. In part this has been caused by a relaxation of the COVID-19 restrictions of the previous period but it is also attributable to the strong bounce back of the economy post pandemic and a strong demand for new housing.
The group's gross profit margin is 18%. The increase is due to returning to more normal market conditions.
Key performance indicators
Considerations under S172 Companies Act 2006
Whenever decisions are made, consideration is always given to the effect of these decisions in the long-term. Whilst the ongoing Covid-19 pandemic has necessitated important decisions being taken quickly and with more stress placed on short-term outcomes, the directors consider the long-term consequences on the group and on its employees to be of paramount importance.
The group works closely across all its business relationships which it has always found to provide mutual benefit. Maintaining a reputation for high standards in all areas of the business and with all stakeholders is a core element of the group and shows in positive feedback received from clients, suppliers and staff.
The group employs its own inspectors to continually monitor health, safety and quality control procedures ensuring that high standards are maintained throughout.
By investing in training, staff are able to take on new opportunities and challenges, this in turn brings benefit to the group in terms of improved procedures, products, health, safety and customer services.
In the wider community the group looks to make decisions that improve wellbeing, encouraging participation in sport, investing in fuel-efficient vehicles and has recently replaced all lighting with efficient LED systems. The group has also continued to support charitable activities during the year.
The directors are aware of their requirement to act fairly between the members and take this requirement into account whenever major operational or financial decisions are made.
Mr R S Manak
Director
22 December 2023
AKAAL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company and group continued to be that of providing full facade and drylining packages principally for the housing sector, together with property investment.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £542,000. The directors do not recommend payment of a further 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 R S Manak
Mrs H K Manak
Future developments
The group will continue to provide full external facade packages and internal plastering and drylining works. It is expected that turnover will increase significantly.
The group will continue to invest in property when the right opportunities arise.
Auditor
In accordance with the company's articles, a resolution proposing that Perrys Audit Limited be reappointed as auditor of the group will be put at a General Meeting.
Energy and carbon report
During the period under review, the group has consistently monitored their energy use in the UK and taken opportunities to reduce this usage where such opportunities have arisen. However, due to the trade and operations of the business, it is expected that each year energy usage will be significant.
No carbon review has been undertaken. Due to the nature of business and the number of sites in operation the directors are considering the best approach to this going forwards.
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 auditor of the company 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 auditor of the company is aware of that information.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
AKAAL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Employee involvement
The group's policy is to consult and discuss with employees, through staff meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
On behalf of the board
Mr R S Manak
Director
22 December 2023
AKAAL GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AKAAL GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
142,765,987
149,465,969
Cost of sales
(116,581,643)
(127,692,446)
Gross profit
26,184,344
21,773,523
Administrative expenses
(20,040,995)
(17,102,167)
Other operating income
958,888
881,631
Operating profit
4
7,102,237
5,552,987
Interest receivable and similar income
8
17,103
10,752
Interest payable and similar expenses
9
(173,565)
(116,597)
Fair value gains and losses on investment properties
14
2,303,658
Profit before taxation
6,945,775
7,750,800
Tax on profit
10
(1,781,274)
(1,903,068)
Profit for the financial year
5,164,501
5,847,732
Profit for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
AKAAL GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
£
£
Profit for the year
5,164,501
5,847,732
Other comprehensive income
-
-
Total comprehensive income for the year
5,164,501
5,847,732
Total comprehensive income for the year is all attributable to the owners of the parent company.
AKAAL GROUP LIMITED (REGISTERED NUMBER: 05957569)
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
283,376
330,605
Tangible assets
13
10,756,815
10,850,316
Investment property
14
29,135,155
25,457,792
40,175,346
36,638,713
Current assets
Stocks
17
6,643,434
4,399,799
Debtors
18
63,190,708
51,655,279
Cash at bank and in hand
4,901,391
13,531,423
74,735,533
69,586,501
Creditors: amounts falling due within one year
19
(23,803,253)
(18,775,452)
Net current assets
50,932,280
50,811,049
Total assets less current liabilities
91,107,626
87,449,762
Creditors: amounts falling due after more than one year
20
(2,613,592)
(3,720,807)
Provisions for liabilities
Deferred tax liability
23
1,475,376
1,332,798
(1,475,376)
(1,332,798)
Net assets
87,018,658
82,396,157
Capital and reserves
Called up share capital
25
61,601
61,601
Other reserves
3,258,005
3,258,005
Non-distributable profits reserve
26
1,727,744
1,727,744
Distributable profit and loss reserves
81,971,308
77,348,807
Total equity
87,018,658
82,396,157
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
22 December 2023
Mr R S Manak
Director
AKAAL GROUP LIMITED (REGISTERED NUMBER: 05957569)
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
6,516,035
6,639,477
Investment property
14
29,135,155
25,457,792
Investments
15
3,555,476
3,555,476
39,206,666
35,652,745
Current assets
Debtors
18
17,287,626
21,726,144
Cash at bank and in hand
925,031
114,986
18,212,657
21,841,130
Creditors: amounts falling due within one year
19
(1,451,680)
(1,718,247)
Net current assets
16,760,977
20,122,883
Total assets less current liabilities
55,967,643
55,775,628
Creditors: amounts falling due after more than one year
20
(2,232,590)
(2,732,000)
Provisions for liabilities
Deferred tax liability
23
772,444
741,607
(772,444)
(741,607)
Net assets
52,962,609
52,302,021
Capital and reserves
Called up share capital
25
61,601
61,601
Non-distributable profits reserve
26
1,727,744
1,727,744
Distributable profit and loss reserves
51,173,264
50,512,676
Total equity
52,962,609
52,302,021
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,202,588 (2022 - £2,759,383 loss).
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
22 December 2023
Mr R S Manak
Director
AKAAL GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Other reserves
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
61,601
3,258,005
74,797,549
78,117,155
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
1,727,744
4,119,988
5,847,732
Dividends
11
-
-
-
(1,568,730)
(1,568,730)
Balance at 31 March 2022
61,601
3,258,005
1,727,744
77,348,807
82,396,157
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
5,164,501
5,164,501
Dividends
11
-
-
-
(542,000)
(542,000)
Balance at 31 March 2023
61,601
3,258,005
1,727,744
81,971,308
87,018,658
AKAAL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
61,601
56,568,533
56,630,134
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
1,727,744
(4,487,127)
(2,759,383)
Dividends
11
-
-
(1,568,730)
(1,568,730)
Balance at 31 March 2022
61,601
1,727,744
50,512,676
52,302,021
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,202,588
1,202,588
Dividends
11
-
-
(542,000)
(542,000)
Balance at 31 March 2023
61,601
1,727,744
51,173,264
52,962,609
AKAAL GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(2,491,681)
(457,085)
Interest paid
(173,565)
(116,597)
Income taxes refunded/(paid)
988,587
(373,504)
Net cash outflow from operating activities
(1,676,659)
(947,186)
Investing activities
Purchase of tangible fixed assets
(1,691,978)
(1,915,398)
Proceeds from disposal of tangible fixed assets
558,187
430,327
Purchase of investment property
(4,168,150)
(5,083,422)
Proceeds from disposal of investment property
474,994
2,417,985
Repayment of loans
(224,840)
426,865
Interest received
17,103
10,752
Net cash used in investing activities
(5,034,684)
(3,712,891)
Financing activities
Repayment of bank loans
(458,071)
(495,460)
Payment of finance leases obligations
(902,132)
867,277
Dividends paid to equity shareholders
(542,000)
(1,568,730)
Net cash used in financing activities
(1,902,203)
(1,196,913)
Net decrease in cash and cash equivalents
(8,613,546)
(5,856,990)
Cash and cash equivalents at beginning of year
13,497,082
19,354,072
Cash and cash equivalents at end of year
4,883,536
13,497,082
Relating to:
Cash at bank and in hand
4,901,391
13,531,423
Bank overdrafts included in creditors payable within one year
(17,855)
(34,341)
AKAAL GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
4,704,752
(496,057)
Interest paid
(125,859)
(78,932)
Income taxes refunded/(paid)
144,999
(15,962)
Net cash inflow/(outflow) from operating activities
4,723,892
(590,951)
Investing activities
Proceeds from disposal of tangible fixed assets
4,501
Purchase of investment property
(4,168,150)
(5,083,422)
Proceeds from disposal of investment property
474,994
2,417,985
Repayment of loans
(224,985)
427,010
Interest received
4,365
3,373
Dividends received
1,000,000
3,200,000
Net cash (used in)/generated from investing activities
(2,913,776)
969,447
Financing activities
Repayment of bank loans
(458,071)
(495,460)
Dividends paid to equity shareholders
(542,000)
(1,568,730)
Net cash used in financing activities
(1,000,071)
(2,064,190)
Net increase/(decrease) in cash and cash equivalents
810,045
(1,685,694)
Cash and cash equivalents at beginning of year
114,986
1,800,680
Cash and cash equivalents at end of year
925,031
114,986
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information
Akaal Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2nd Floor (Right) Downe House, 303 High Street, Orpington, Kent, England, BR6 0NN.
The group consists of Akaal Group Limited and all of its subsidiaries.
1.1
Accounting convention
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Akaal Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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:
Freehold buildings
2% on cost
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Computers
33% on reducing balance
Motor vehicles
25% on 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 recognised in the profit and loss account.
Freehold land is not depreciated. The freehold land is included in the accounts at cost.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.8
Investment property
Investment property, which is property held to earn rentals and for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
1.11
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.
1.12
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.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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.
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 group 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 payments 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. Amounts 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.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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 if, and only if, there is 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.
1.15
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.
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is 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 as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
The basis of measurement of the company's investment properties is fair value which contains judgements, estimates and assumptions on the fair value of the investment properties. As at 31 March 2023, the investment properties were tenanted and the director's valuation takes into consideration that these properties can be let to both tenants or operational businesses. The director has assessed the open market value of the properties by reference to the purchase price of the properties, and by reference to conducting estimates of comparable properties in the same areas and has assessed the open market value to be £29,135,155.
Included within freehold buildings in tangible fixed assets is freehold land which is not depreciated. The value of freehold land is estimated by the director as a proportion of the total cost of the property at acquisition.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Property development and maintenance
142,765,987
149,465,969
2023
2022
£
£
Other revenue
Interest income
17,103
10,752
Grants received
-
69,068
Rental income received from investment properties
1,148,141
1,003,276
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(69,068)
Depreciation of owned tangible fixed assets
687,772
752,077
Depreciation of tangible fixed assets held under finance leases
561,340
490,320
Profit on disposal of tangible fixed assets
(21,820)
(86,370)
Loss on disposal of investment property
15,792
-
Amortisation of intangible assets
47,229
47,229
Operating lease charges
208,617
177,072
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,400
6,095
Audit of the financial statements of the company's subsidiaries
74,730
64,265
81,130
70,360
For other services
All other non-audit services
26,543
3,715
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
106
92
2
2
Production
142
151
-
-
Total
248
243
2
2
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
12,331,825
11,706,261
110,000
110,000
Social security costs
1,623,150
1,501,475
14,661
14,637
Pension costs
889,293
837,962
14,844,268
14,045,698
124,661
124,637
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
110,000
110,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,956
38
Other interest income
15,147
10,714
Total income
17,103
10,752
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,956
38
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
125,859
78,932
Other finance costs:
Other interest
47,706
37,665
Total finance costs
173,565
116,597
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,671,070
1,074,381
Adjustments in respect of prior periods
(32,373)
9,049
Total current tax
1,638,697
1,083,430
Deferred tax
Origination and reversal of timing differences
142,577
819,638
Total tax charge
1,781,274
1,903,068
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:
2023
2022
£
£
Profit before taxation
6,945,775
7,750,800
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
1,319,697
1,472,652
Tax effect of expenses that are not deductible in determining taxable profit
352,330
58,026
Tax effect of income not taxable in determining taxable profit
(437,695)
Amortisation on assets not qualifying for tax allowances
8,974
8,973
Under/(over) provided in prior years
(32,375)
9,049
Deferred tax
142,577
243,724
Depreciation in excess of capital allowances
4,766
(53,110)
Profit/(Loss) on disposal of assets
(2,238)
(20,340)
Chargeable gains
1,958
Deferred tax on revaluation
575,915
Pensions
56
12,785
Timing difference
(12,513)
31,131
Taxation charge
1,781,274
1,903,068
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
542,000
1,568,730
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
472,292
Amortisation and impairment
At 1 April 2022
141,687
Amortisation charged for the year
47,229
At 31 March 2023
188,916
Carrying amount
At 31 March 2023
283,376
At 31 March 2022
330,605
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
13
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
7,410,246
736,962
649,628
1,706,662
6,000,790
16,504,288
Additions
35,083
5,898
118,011
1,532,986
1,691,978
Disposals
(220,092)
(464,657)
(795,137)
(1,075,570)
(2,555,456)
At 31 March 2023
7,410,246
551,953
190,869
1,029,536
6,458,206
15,640,810
Depreciation and impairment
At 1 April 2022
780,797
410,121
466,017
1,306,269
2,690,768
5,653,972
Depreciation charged in the year
113,414
49,561
16,806
143,860
925,471
1,249,112
Eliminated in respect of disposals
(178,202)
(387,733)
(761,567)
(691,587)
(2,019,089)
At 31 March 2023
894,211
281,480
95,090
688,562
2,924,652
4,883,995
Carrying amount
At 31 March 2023
6,516,035
270,473
95,779
340,974
3,533,554
10,756,815
At 31 March 2022
6,629,449
326,841
183,611
400,393
3,310,022
10,850,316
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 24 -
Company
Freehold buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
7,410,246
100,000
7,137
7,517,383
Disposals
(100,000)
(7,137)
(107,137)
At 31 March 2023
7,410,246
7,410,246
Depreciation and impairment
At 1 April 2022
780,797
90,990
6,119
877,906
Depreciation charged in the year
113,414
113,414
Eliminated in respect of disposals
(90,990)
(6,119)
(97,109)
At 31 March 2023
894,211
894,211
Carrying amount
At 31 March 2023
6,516,035
6,516,035
At 31 March 2022
6,629,449
9,010
1,018
6,639,477
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
1,726,880
2,171,930
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 April 2022
25,457,791
25,457,791
Additions through external acquisition
4,168,150
4,168,150
Disposals
(490,786)
(490,786)
At 31 March 2023
29,135,155
29,135,155
The investment properties above are stated at fair value in the opinion of the directors. External acquisitions in the year were purchased at fair value and, in the opinion of the directors, this represents the fair value at the year end. Other investment properties held have been included at fair value by the directors on the basis of the open market value by reference to market evidence of transaction prices for similar properties.
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
3,555,476
3,555,476
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
3,555,476
Carrying amount
At 31 March 2023
3,555,476
At 31 March 2022
3,555,476
16
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Manak Homes Limited
2nd Floor (Right) Downe House, 303 High Street, Orpington, BR6 0NN
Ordinary
100.00
-
Stanmore Contractors Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary A
100.00
-
Stanmore Drylining Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Facades Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Glazing Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Holdings Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
100.00
-
Stanmore Homes Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Modular Limited
2nd Floor (Right) Downe House, 303 High Street, Orpington, BR6 0NN
Ordinary
-
100.00
Stanmore Steel Limited
2nd Floor (Right) Downe House, 303 High Street, Orpington, BR6 0NN
Ordinary
100.00
-
Stanmore Unitised Facades Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
100.00
-
Kent Powder Coating Limited
2nd Floor (Right) Downe House, 303 High Street, Orpington, BR6 0NN
Ordinary and Ordinary A
100.00
-
Stanmore Fire Proofing Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Brickwork Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Carpentry Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Stanmore Decorating Limited
Stanmore House, Gyproc Business Park, Church Manorway, Erith, Kent, DA8 1DE
Ordinary
-
100.00
Manak Homes Limited (company number 05282843) is exempt from the requirements of the Companies Act relating to the audit of individual accounts by virtue of s479A of the Companies Act.
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
5,690,142
3,616,267
-
-
Work in progress
953,292
783,532
-
-
6,643,434
4,399,799
-
-
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
54,046,981
41,241,998
241,731
196,629
Corporation tax recoverable
10,011
1,148,001
244,576
Amounts owed by group undertakings
-
-
15,439,714
19,728,393
Other debtors
7,859,172
7,086,766
1,568,308
1,518,323
Prepayments and accrued income
1,274,544
2,178,514
37,873
38,223
63,190,708
51,655,279
17,287,626
21,726,144
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
633,635
608,782
615,780
574,441
Obligations under finance leases
22
708,188
1,002,515
Trade creditors
17,474,062
12,694,523
20,045
12,856
Amounts owed to group undertakings
78,249
78,249
Corporation tax payable
1,534,282
44,989
39,962
Other taxation and social security
1,468,805
1,291,926
15,942
38,337
Other creditors
252,462
553,164
174,242
476,758
Accruals and deferred income
1,731,819
2,579,553
507,460
537,606
23,803,253
18,775,452
1,451,680
1,718,247
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
2,232,590
2,732,000
2,232,590
2,732,000
Obligations under finance leases
22
381,002
988,807
2,613,592
3,720,807
2,232,590
2,732,000
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,848,370
3,306,441
2,848,370
3,306,441
Bank overdrafts
17,855
34,341
2,866,225
3,340,782
2,848,370
3,306,441
Payable within one year
633,635
608,782
615,780
574,441
Payable after one year
2,232,590
2,732,000
2,232,590
2,732,000
The group's overdraft facility is secured by fixed and floating charges over the group's assets present and future. The groups overdraft position at 31 March 2023 totalled £17,855 (2022 - £34,341).
The company has entered into a cross guarantee arrangement with its bankers in relation to its subsidiaries Stanmore Contractors Limited and Stanmore Steel Limited. At 31 March 2023, the liabilities in the other companies guaranteed by this company amount to £Nil.
As at 31 March 2023, loans and overdrafts in other group companies, subject to the above guarantee, amounted to £2,848,371 (2022 - £3,306,441). These loans are also secured by way of legal mortgages over the group's freehold and investment properties.
Hire purchase liabilities totalling £1,089,190 (2022 - £1,991,322) are secured by the group on the assets purchased under the hire purchase agreements.
Interest rates on these loans is variable based on the risk profile of the borrowing at the time and any other factors as appropriate.
An analysis of the maturity of loans is given below:
| | | |
| | | |
Due within one year or on demand | | | |
| | | |
| | | |
| | | |
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
708,188
1,002,515
In two to five years
381,002
988,807
1,089,190
1,991,322
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
899,461
756,883
Revaluations
575,915
575,915
1,475,376
1,332,798
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
196,529
165,692
Revaluations
575,915
575,915
772,444
741,607
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
23
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
1,332,798
741,607
Charge to profit or loss
142,578
30,837
Liability at 31 March 2023
1,475,376
772,444
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
889,293
837,962
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1
1
1
1
Ordinary A Shares of £1 each
61,100
61,100
61,100
61,100
Ordinary B Shares of £1 each
500
500
500
500
61,601
61,601
61,601
61,601
26
Non-distributable profits reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,727,744
-
1,727,744
-
Non distributable profits in the year
-
1,727,744
-
1,727,744
At the end of the year
1,727,744
1,727,744
1,727,744
1,727,744
AKAAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
27
Related party transactions
As at the balance sheet date the group was owed £743,770 (2022 - £743,770) from a company controlled by a close family member of the directors, this balance is included within other debtors.
28
Directors' transactions
Dividends totalling £542,000 (2022 - £1,568,730) were paid in the year in respect of shares held by the company's directors.
At the 31 March 2023 there was an overdrawn director's loan account of £224,985. This amount was repaid within 9 months and was included within other debtors.
29
Controlling party
R S Manak, a director, controls the company by virtue of his shareholding.
30
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
5,164,502
5,847,732
Adjustments for:
Taxation charged
1,781,274
1,903,068
Finance costs
173,565
116,597
Investment income
(17,103)
(10,752)
Gain on disposal of tangible fixed assets
(21,820)
(86,370)
Loss on disposal of investment property
15,792
-
Fair value gain on investment properties
-
(2,303,658)
Amortisation and impairment of intangible assets
47,229
47,229
Depreciation and impairment of tangible fixed assets
1,249,112
1,242,397
Movements in working capital:
Increase in stocks
(2,243,635)
(1,517,709)
Increase in debtors
(12,448,579)
(5,258,264)
Increase/(decrease) in creditors
3,807,982
(437,355)
Cash absorbed by operations
(2,491,681)
(457,085)
AKAAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AKAAL GROUP LIMITED
- 32 -
Opinion
We have audited the financial statements of Akaal Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group's and the parent company's affairs as at 31 March 2023 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
AKAAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AKAAL GROUP LIMITED
- 33 -
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' report 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records 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' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
AKAAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AKAAL GROUP LIMITED
- 34 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
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.
Declan McCusker (Senior Statutory Auditor)
For and on behalf of Perrys Audit Limited
Chartered Accountants
Statutory Auditor
4th Floor
399-401 Strand
London
WC2R 0LT
22 December 2023
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr R S ManakMrs H K ManakMs T Barrettfalse05957569bus:Consolidated2022-04-012023-03-31059575692022-04-012023-03-3105957569bus:Director12022-04-012023-03-3105957569bus:Director22022-04-012023-03-3105957569bus:CompanySecretary12022-04-012023-03-3105957569bus:RegisteredOffice2022-04-012023-03-3105957569bus:Consolidated2023-03-3105957569bus:Consolidated2021-04-012022-03-31059575692021-04-012022-03-31059575692023-03-3105957569core:Goodwillbus:Consolidated2023-03-3105957569core:Goodwillbus:Consolidated2022-03-3105957569bus:Consolidated2022-03-31059575692022-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3105957569core:PlantMachinerybus:Consolidated2023-03-3105957569core:FurnitureFittingsbus:Consolidated2023-03-3105957569core:ComputerEquipmentbus:Consolidated2023-03-3105957569core:MotorVehiclesbus:Consolidated2023-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-03-3105957569core:PlantMachinerybus:Consolidated2022-03-3105957569core:FurnitureFittingsbus:Consolidated2022-03-3105957569core:ComputerEquipmentbus:Consolidated2022-03-3105957569core:MotorVehiclesbus:Consolidated2022-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3105957569core:PlantMachinery2023-03-3105957569core:MotorVehicles2023-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105957569core:PlantMachinery2022-03-3105957569core:MotorVehicles2022-03-3105957569core:CurrentFinancialInstruments2023-03-3105957569core:CurrentFinancialInstruments2022-03-3105957569bus:Consolidated2021-03-31059575692021-03-3105957569core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3105957569core:Non-currentFinancialInstrumentsbus:Consolidated2022-03-3105957569core:ShareCapitalbus:Consolidated2023-03-3105957569core:ShareCapitalbus:Consolidated2022-03-3105957569core:OtherReservesSubtotal2023-03-3105957569core:OtherReservesSubtotal2022-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquitybus:Consolidated2023-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquitybus:Consolidated2022-03-3105957569core:OtherReservesSubtotalbus:Consolidated2023-03-3105957569core:OtherReservesSubtotalbus:Consolidated2022-03-3105957569core:ShareCapital2023-03-3105957569core:ShareCapital2022-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquity2023-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquity2022-03-3105957569core:RetainedEarningsAccumulatedLosses2023-03-3105957569core:ShareCapitalbus:Consolidated2021-03-3105957569core:OtherReservesSubtotal2021-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquitybus:Consolidated2021-03-3105957569core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-03-3105957569core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterestsbus:Consolidated2021-03-3105957569core:OtherMiscellaneousReserve2022-03-3105957569core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3105957569core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterestsbus:Consolidated2022-03-3105957569core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3105957569core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterestsbus:Consolidated2023-03-3105957569core:ShareCapital2021-03-3105957569core:FurtherSpecificReserve1ComponentTotalEquity2021-03-3105957569core:RetainedEarningsAccumulatedLosses2021-03-3105957569core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests2021-03-3105957569core:RetainedEarningsAccumulatedLosses2022-03-3105957569core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests2022-03-3105957569core:Goodwill2022-04-012023-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3105957569core:PlantMachinery2022-04-012023-03-3105957569core:FurnitureFittings2022-04-012023-03-3105957569core:ComputerEquipment2022-04-012023-03-3105957569core:MotorVehicles2022-04-012023-03-3105957569core:UKTaxbus:Consolidated2022-04-012023-03-3105957569core:UKTaxbus:Consolidated2021-04-012022-03-3105957569bus:Consolidated12022-04-012023-03-3105957569bus:Consolidated12021-04-012022-03-3105957569bus:Consolidated22022-04-012023-03-3105957569bus:Consolidated22021-04-012022-03-3105957569bus:Consolidated32022-04-012023-03-3105957569bus:Consolidated32021-04-012022-03-3105957569bus:Consolidated42022-04-012023-03-3105957569bus:Consolidated42021-04-012022-03-3105957569bus:Consolidated52022-04-012023-03-3105957569bus:Consolidated52021-04-012022-03-3105957569bus:Consolidated62022-04-012023-03-3105957569bus:Consolidated62021-04-012022-03-3105957569core:Goodwillbus:Consolidated2022-03-3105957569core:Goodwillbus:Consolidated2022-04-012023-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-03-3105957569core:PlantMachinerybus:Consolidated2022-03-3105957569core:FurnitureFittingsbus:Consolidated2022-03-3105957569core:ComputerEquipmentbus:Consolidated2022-03-3105957569core:MotorVehiclesbus:Consolidated2022-03-3105957569bus:Consolidated2022-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105957569core:PlantMachinery2022-03-3105957569core:MotorVehicles2022-03-31059575692022-03-3105957569core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-04-012023-03-3105957569core:PlantMachinerybus:Consolidated2022-04-012023-03-3105957569core:FurnitureFittingsbus:Consolidated2022-04-012023-03-3105957569core:ComputerEquipmentbus:Consolidated2022-04-012023-03-3105957569core:MotorVehiclesbus:Consolidated2022-04-012023-03-3105957569core:Subsidiary12022-04-012023-03-3105957569core:Subsidiary22022-04-012023-03-3105957569core:Subsidiary32022-04-012023-03-3105957569core:Subsidiary52022-04-012023-03-3105957569core:Subsidiary42022-04-012023-03-3105957569core:Subsidiary62022-04-012023-03-3105957569core:Subsidiary92022-04-012023-03-3105957569core:Subsidiary72022-04-012023-03-3105957569core:Subsidiary82022-04-012023-03-3105957569core:Subsidiary102022-04-012023-03-3105957569core:Subsidiary112022-04-012023-03-3105957569core:Subsidiary122022-04-012023-03-3105957569core:Subsidiary132022-04-012023-03-3105957569core:Subsidiary142022-04-012023-03-3105957569core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3105957569core:CurrentFinancialInstrumentsbus:Consolidated2022-03-3105957569core:WithinOneYearbus:Consolidated2023-03-3105957569core:WithinOneYearbus:Consolidated2022-03-3105957569core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3105957569core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3105957569core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3105957569core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-03-3105957569core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3105957569core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3105957569core:Non-currentFinancialInstruments2023-03-3105957569core:Non-currentFinancialInstruments2022-03-3105957569core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3105957569core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-03-3105957569core:WithinOneYear2023-03-3105957569core:WithinOneYear2022-03-3105957569core:BetweenTwoFiveYearsbus:Consolidated2023-03-3105957569core:BetweenTwoFiveYearsbus:Consolidated2022-03-3105957569core:BetweenTwoFiveYears2023-03-3105957569core:BetweenTwoFiveYears2022-03-3105957569bus:PrivateLimitedCompanyLtd2022-04-012023-03-3105957569bus:FRS1022022-04-012023-03-3105957569bus:Audited2022-04-012023-03-3105957569bus:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3105957569bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP