Future Garments Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02690536 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 JUNE 2017 TO 30 MAY 2018

FOR

FUTURE GARMENTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

K S Palak

H S Palak

SECRETARY:

Mr. K S Palak

REGISTERED OFFICE:

Aqua House, Buttress Way

Smethwick

Warley

West Midlands

B66 3DL

REGISTERED NUMBER:

02690536 (England and Wales)

AUDITORS:

Thapers Limited

Chartered Accountants

Harpal House

14 Holyhead Road

Handsworth

Birmingham

West Midlands

B21 0LT

BANKERS:

Handelsbanken

35 Newhall Street

Birmingham

West Midlands

B3 3PU

The directors present their strategic report for the period 1 June 2017 to 30 May 2018.

REVIEW OF BUSINESS

The directors have pleasure in presenting their report and the financial statements of the company Future Garments

Limited, registration number 02690536 (England and Wales) for the year ended 30 May 2018.

The business review sets the performance for the year ended 30 May 2018 and of future developments.

The Companies Act requires the company to set out in this annual report a fair review of the business of the company

during the year ended 30 May 2018, including an analysis of the position of the company at the end of the period and an

analysis of the company's performance.

This has been a very good year for the company, with increased levels of turnover, despite the continuing uncertainty

around Brexit and the value of pound deteriorating. This, in part, is attributed to the company widening its product range

in previous years. Further, the group, through a separate trading subsidiary, diversified its business into welding related

safety products. The venture produced a modest return, which the directors hope will continue into the future.

This year the company continued with good cost control and so has delivered good returns. The sales growth is now

double digit at nearly 13%, following on from 9% in the previous reporting period. The company has also realigned it's

pricing to reflect the exchange rate conditions.

As a consequence of all of the above the directors have decided to pass a modest return to shareholders by way of a

dividend.

By taking good care as we undertake our business in the present we will ensure the long term sustainability of our

business in the future. At the heart of our operation we consider carefully how we interact with the world around us,

work hard to minimise our impact and strive to make a positive contribution, taking on board the views of all of our key

stakeholders. Corporate Responsibility is a specific business discipline that takes a proactive approach to forward

thinking management. It recognises that business decisions have to take into account social and environmental factors

alongside economic ones. We care about where our garments and material comes from, how it is produced, the people

who make it and how it is moved & sold.

We are an equal opportunities employer, committed to giving fair and equal treatment to all employees and job

applicants in terms of recruitment, pay conditions, promotions, training and all employment matters regardless of their

race, sex, ethnic background or religious beliefs, sexual orientation or disabilities. An equal opportunities policy is in

force which aims to ensure that all employees are selected, trained, compensated, promoted and transferred solely on the

strength of their ability, skills, qualifications and merit. We also believe that all employees have a right to work in an

environment free from discrimination and bullying.

ON BEHALF OF THE BOARD:

K S Palak - Director

21 May 2019

The directors present their report with the financial statements of the company for the period 1 June 2017 to 30 May 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of Manufacture of workwear

DIVIDENDS

No interim dividend was paid during the period. The directors recommend a final dividend of £1 per share.

The total distribution of dividends for the period ended 30 May 2018 will be £ 12,500 .

DIRECTORS

The directors' who also served the parent company, had the following interests in the parent company Aqua Holdings

Limited:

£1 Ordinary Shares 30/5/18

£1 Ordinary Shares 31/5/17

Mr K S Palak

6,250

6,250

Mr H S Palak

3,125

3,125

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Thapers Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

K S Palak - Director

21 May 2019

Opinion

We have audited the financial statements of Future Garments Limited (the 'company') for the period ended 30 May 2018

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 May 2018 and of its profit for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion 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 page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Andeep Mangal F.C.A. (Senior Statutory Auditor)

for and on behalf of Thapers Limited

Chartered Accountants

Harpal House

14 Holyhead Road

Handsworth

Birmingham

West Midlands

B21 0LT

21 May 2019

TURNOVER

9,624,066

8,519,705

Cost of sales

6,784,074

6,002,513

GROSS PROFIT

2,839,992

2,517,192

Administrative expenses

1,980,604

1,943,463

859,388

573,729

Other operating income

-

9,577

OPERATING PROFIT

4

859,388

583,306

Profit/loss on sale of tang fa

5

-

140,646

859,388

723,952

Interest payable and similar expenses

6

1,509

5,703

PROFIT BEFORE TAXATION

857,879

718,249

Tax on profit

7

151,381

138,245

PROFIT FOR THE FINANCIAL PERIOD

706,498

580,004

PROFIT FOR THE PERIOD

706,498

580,004

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

706,498

580,004

FIXED ASSETS

Tangible assets

9

85,613

81,710

CURRENT ASSETS

Stocks

10

1,798,678

1,543,314

Debtors

11

3,210,314

3,880,836

Cash at bank and in hand

3,056,132

1,810,461

8,065,124

7,234,611

CREDITORS

Amounts falling due within one year

12

1,769,615

1,569,197

NET CURRENT ASSETS

6,295,509

5,665,414

TOTAL ASSETS LESS CURRENT LIABILITIES

6,381,122

5,747,124

CREDITORS

Amounts falling due after more than one year

13

(270,000

)

(330,000

)

PROVISIONS FOR LIABILITIES

16

(1,835

)

(1,835

)

NET ASSETS

6,109,287

5,415,289

CAPITAL AND RESERVES

Called up share capital

17

12,500

12,500

Retained earnings

18

6,096,787

5,402,789

SHAREHOLDERS' FUNDS

6,109,287

5,415,289

The financial statements were approved by the Board of Directors on 21 May 2019 and were signed on its behalf by:

K S Palak - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2016

12,500

4,822,785

4,835,285

Changes in equity

Total comprehensive income

-

580,004

580,004

Balance at 31 May 2017

12,500

5,402,789

5,415,289

Changes in equity

Dividends

-

(12,500

)

(12,500

)

Total comprehensive income

-

706,498

706,498

Balance at 30 May 2018

12,500

6,096,787

6,109,287

Cash flows from operating activities

Cash generated from operations

1

1,439,318

(2,472,085

)

Interest paid

(1,509

)

(5,703

)

Tax paid

(94,138

)

(127,539

)

Net cash from operating activities

1,343,671

(2,605,327

)

Cash flows from investing activities

Purchase of tangible fixed assets

(25,500

)

(7,210

)

Sale of tangible fixed assets

-

1,159,354

Net cash from investing activities

(25,500

)

1,152,144

Cash flows from financing activities

Loan repayments in year

(60,000

)

(60,000

)

Equity dividends paid

(12,500

)

-

Net cash from financing activities

(72,500

)

(60,000

)

Increase/(decrease) in cash and cash equivalents

1,245,671

(1,513,183

)

Cash and cash equivalents at beginning of period

2

1,810,461

3,323,644

Cash and cash equivalents at end of period

2

3,056,132

1,810,461

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Profit before taxation

857,879

718,249

Depreciation charges

21,596

21,538

Non cash adjusting item (rounding diff)

1

(1

)

Finance costs

1,509

5,703

880,985

745,489

(Increase)/decrease in stocks

(255,364

)

175,108

Decrease/(increase) in trade and other debtors

670,522

(2,649,193

)

Increase/(decrease) in trade and other creditors

143,175

(743,489

)

Cash generated from operations

1,439,318

(2,472,085

)

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:

Period ended 30 May 2018

30.5.18

1.6.17

£

£

Cash and cash equivalents

3,056,132

1,810,461

Year ended 31 May 2017

31.5.17

1.6.16

£

£

Cash and cash equivalents

1,810,461

3,324,925

Bank overdrafts

-

(1,281

)

1,810,461

3,323,644

1.	STATUTORY INFORMATION

Future Garments Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

2% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

50% on cost, 33% on cost and 15% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the period 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.

Deferred tax

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

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Wages and salaries

979,829

946,329

Social security costs

74,412

63,764

Other pension costs

20,262

21,071

1,074,503

1,031,164

The average number of employees during the period was as follows:

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

Accounts

6

5

Sales & Marketing

9

9

Warehouse

20

19

Purchasing

5

5

Management

3

3

43

41

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Directors' remuneration

24,000

23,984

4.	OPERATING PROFIT

The operating profit is stated after charging:

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Depreciation - owned assets

21,597

21,537

Auditors' remuneration

7,000

7,000

Depreciation of assets held under hire purchase agreements

2,651

4,500

Net loss/(profit) on foreign currency translation

(33,452

)

304,459

5.	EXCEPTIONAL ITEMS

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Profit/loss on sale of tang fa

-

140,646

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Bank loan interest

1,509

5,703

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Current tax:

UK corporation tax

160,487

103,581

Corp. tax under/over provided

(9,106

)

34,664

Tax on profit

151,381

138,245

8.

DIVIDENDS

PERIOD

1.6.17

TO

YEAR ENDED

30.5.18

31.5.17

£

£

Ordinary Shares shares of 1 each

Final

12,500

-

9.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 June 2017

67,521

310,242

121,489

115,513

614,765

Additions

-

-

-

25,500

25,500

At 30 May 2018

67,521

310,242

121,489

141,013

640,265

DEPRECIATION

At 1 June 2017

12,463

300,211

113,750

106,631

533,055

Charge for period

1,351

5,122

5,469

9,655

21,597

At 30 May 2018

13,814

305,333

119,219

116,286

554,652

NET BOOK VALUE

At 30 May 2018

53,707

4,909

2,270

24,727

85,613

At 31 May 2017

55,058

10,031

7,739

8,882

81,710

Fixed assets with a net book value of £0 (2017: £2,651) are on hire purchase.

10.

STOCKS

30/5/18

31/5/17

£

£

Stocks

1,798,678

1,543,314

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/5/18

31/5/17

£

£

Trade debtors

1,284,049

1,274,328

Other debtors

1,926,265

2,606,508

3,210,314

3,880,836

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/5/18

31/5/17

£

£

Bank loans and overdrafts (see note 14)

60,000

60,000

Trade creditors

699,199

583,923

Corporation tax payable

195,497

138,254

Social security and other taxes

17,026

17,521

VAT

30,133

56,634

Other creditors

701,271

572,049

Loan India creditor

52,557

52,557

Associates companies

13,932

88,259

1,769,615

1,569,197