USB International Limited Company accounts

USB INTERNATIONAL LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 04036237

USB International Limited

Financial Statements

31 March 2023

USB International Limited

Financial Statements

Year ended 31 March 2023

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	3

Independent auditor's report to the members	5

Statement of income and retained earnings	9

Statement of financial position	10

Statement of cash flows	11

Notes to the financial statements	12

USB International Limited

Officers and Professional Advisers

The board of directors	Mr U Agarwal
	Mrs M Agarwal

Company secretary	Mrs M Agarwal

Registered office	Unit 5
	Russel House
	Hornsby Way
	Southfields Business Park
	Basildon
	England
	SS15 6TF

Auditor	Muras Baker Jones Limited
	Chartered accountants & statutory auditor
	Regent House
	Bath Avenue
	Wolverhampton
	West Midlands
	WV1 4EG

USB International Limited

Strategic Report

Year ended 31 March 2023

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

The directors are confident about the continuing financial performance of the business and continue to seek opportunities to develop the business further.

Principal risks and uncertainties

The company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk, exchange rate risk and interest rate risk. The directors monitor financial risk management.

Development and performance

The position of the company at the year end is disclosed on the balance sheet.

Key performance indicators

Turnover increased by 59.64% from £11,685,788 in 2022 to £18,655,235 in 2023. Gross profit decreased from 35.27% to 33.19% of sales. Operating profit increased to £1,321,537 compared to an operating profit last year of £646,354.

This report was approved by the board of directors on 19 December 2023 and signed on behalf of the board by:

Mrs M Agarwal

Company Secretary

USB International Limited

Directors' Report

Year ended 31 March 2023

The directors present their report and the financial statements of the company for the year ended 31 March 2023 .

Principal activities

The principal activity of the company during the year continued to be that of importers of luggage and house textiles.

Directors

The directors who served the company during the year were as follows:

Mr U Agarwal
Mrs M Agarwal

Dividends

The directors do not recommend the payment of a dividend.

Directors' responsibilities statement

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

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

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

This report was approved by the board of directors on 19 December 2023 and signed on behalf of the board by:

Mrs M Agarwal

Company Secretary

USB International Limited

Independent Auditor's Report to the Members of USB International Limited

Year ended 31 March 2023

Opinion

We have audited the financial statements of USB International Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the 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 company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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: In planning and designing our audit tests we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management about their own identification and assessment of risks and irregularities. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK tax legislation and other laws and regulations identified as risk areas identified from our discussions with management. We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. After consideration of the above risks we then carried out audit procedures including the following: - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of management meetings; - reviewing correspondence with H M Revenue & Customs; - enquiring of management and reviewing any correspondence with legal advisors concerning actual and potential litigation and claims; - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. There are inherent limitations in our audit procedures described above. The more removed that the laws and regulations are from financial transactions the less likely it is that we would be aware on non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities 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 auditor’s report. Use of our report

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

Oliver Ross BSc (Hons) FCA

(Senior Statutory Auditor)

For and on behalf of

Muras Baker Jones Limited

Chartered accountants & statutory auditor

Regent House

Bath Avenue

Wolverhampton

West Midlands

WV1 4EG

19 December 2023

USB International Limited

Statement of Income and Retained Earnings

Year ended 31 March 2023

		2023	2022
Note		£	£
Turnover	4	18,655,235	11,685,788

Cost of sales	( 12,463,112)	( 7,564,579)
	-------------	-------------
Gross profit	6,192,123	4,121,209

Administrative expenses		( 4,870,586)	( 3,510,797)
Other operating income	5	–	35,942
		------------	------------
Operating profit	6	1,321,537	646,354

Other interest receivable and similar income	10	4,756	–
Interest payable and similar expenses	11	( 198,293)	( 47,543)
		------------	------------
Profit before taxation		1,128,000	598,811

Tax on profit	12	( 214,074)	( 139,435)
		------------	---------
Profit for the financial year and total comprehensive income		913,926	459,376
		------------	---------

Retained earnings at the start of the year	8,807,334	8,347,958
	------------	------------
Retained earnings at the end of the year	9,721,260	8,807,334
	------------	------------

All the activities of the company are from continuing operations.

USB International Limited

Statement of Financial Position

31 March 2023

	2023		2022
Note	£	£	£

Fixed assets

Tangible assets	14		334,905	405,083

Current assets

Stocks	15	4,748,307	6,354,245
Debtors	16	11,445,866	6,936,717
Cash at bank and in hand		1,376,987	1,531,038
		-------------	-------------
		17,571,160	14,822,000

Creditors: amounts falling due within one year	17	( 6,853,636)		( 4,830,255)
		-------------		-------------
Net current assets			10,717,524	9,991,745
			-------------	-------------
Total assets less current liabilities			11,052,429	10,396,828

Creditors: amounts falling due after more than one year	18		( 1,264,769)	( 1,509,731)

Provisions	20	( 66,300)	( 79,663)
		-------------	-------------
Net assets		9,721,360	8,807,434
		-------------	-------------

Capital and reserves

Called up share capital	26	100	100
Profit and loss account		9,721,260	8,807,334
		------------	------------
Shareholders funds		9,721,360	8,807,434
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 19 December 2023 , and are signed on behalf of the board by:

Mr U Agarwal	Mrs M Agarwal
Director	Director

Company registration number: 04036237

USB International Limited

Statement of Cash Flows

Year ended 31 March 2023

	2023	2022
	£	£

Cash flows from operating activities

Profit for the financial year	913,926	459,376

Adjustments for:
Depreciation of tangible assets	106,501	107,812
Government grant income	–	( 35,942)
Other interest receivable and similar income	( 4,756)	–
Interest payable and similar expenses	198,293	47,543
Gains on disposal of tangible assets	( 15,380)	–
Tax on profit	214,074	139,435
Accrued (income)/expenses	( 10,699)	2,018

Changes in:
Stocks	1,605,938	( 3,240,547)
Trade and other debtors	( 4,509,149)	( 463,997)
Trade and other creditors	( 219,252)	304,369
	------------	------------
Cash generated from operations	( 1,720,504)	( 2,679,933)

Interest paid	( 198,293)	( 47,543)
Interest received	4,756	–
Tax paid	( 115,741)	( 21,505)
	------------	------------
Net cash used in operating activities	( 2,029,782)	( 2,748,981)
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 125,443)	( 111,728)
Proceeds from sale of tangible assets	104,500	–
	------------	------------
Net cash used in investing activities	( 20,943)	( 111,728)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	( 1,645,656)	1,136,155
Proceeds from loans from participating interests	3,504,822	–
Government grant income	–	35,942
Payments of finance lease liabilities	37,508	( 21,733)
	------------	------------
Net cash from financing activities	1,896,674	1,150,364
	------------	------------

Net decrease in cash and cash equivalents	( 154,051)	( 1,710,345)
Cash and cash equivalents at beginning of year	1,531,038	3,241,383
	------------	------------
Cash and cash equivalents at end of year	1,376,987	1,531,038
	------------	------------

USB International Limited

Notes to the Financial Statements

Year ended 31 March 2023

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 5, Russel House, Hornsby Way, Southfields Business Park, Basildon, SS15 6TF, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	Over expected life of 5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2023	2022
	£	£
Sale of goods	18,655,235	11,685,788
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2023	2022
	£	£
United Kingdom	14,860,760	10,864,620
Overseas sales	3,794,475	821,168
	-------------	-------------
	18,655,235	11,685,788
	-------------	-------------

5. Other operating income

	2023	2022
	£	£
Government grant income	–	35,942
	----	--------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2023	2022
	£	£
Depreciation of tangible assets	106,501	107,812
Gains on disposal of tangible assets	( 15,380)	–
Impairment of trade debtors	1,821	2,981
Foreign exchange differences	79,455	( 20,183)
	---------	---------

7. Auditor's remuneration

	2023	2022
	£	£
Fees payable for the audit of the financial statements	9,000	9,000
	-------	-------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2023	2022
	No.	No.
Distribution staff	2	2
Administrative staff	22	18
	----	----
	24	20
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2023	2022
	£	£
Wages and salaries	900,954	728,272
Social security costs	91,218	76,922
Other pension costs	14,250	12,616
	------------	---------
	1,006,422	817,810
	------------	---------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2023	2022
	£	£
Company contributions to defined contribution pension plans	1,920	1,920
	-------	-------

The number of directors who accrued benefits under company pension plans was as follows:

	2023	2022
	No.	No.
Defined contribution plans	1	1
	----	----

10. Other interest receivable and similar income

	2023	2022
	£	£
Interest on bank deposits	3,424	–
Interest receivable on corporation tax	1,332	–
	-------	----
	4,756	–
	-------	----

11. Interest payable and similar expenses

	2023	2022
	£	£
Interest on banks loans and overdrafts	186,716	38,704
Interest on obligations under finance leases and hire purchase contracts	6,755	4,586
Interest on overdue taxation	–	4,253
Other interest payable and similar charges	4,822	–
	---------	--------
	198,293	47,543
	---------	--------

12. Tax on profit

Major components of tax expense

	2023	2022
	£	£

Current tax:

UK current tax expense	228,800	132,871
Adjustments in respect of prior periods	( 1,363)	3,123
	---------	---------
Total current tax	227,437	135,994
	---------	---------

Deferred tax:

Origination and reversal of timing differences	( 13,363)	3,441
	---------	---------
Tax on profit	214,074	139,435
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).

	2023	2022
	£	£
Profit on ordinary activities before taxation	1,128,000	598,811
	------------	---------
Profit on ordinary activities by rate of tax	214,320	113,774
Adjustment to tax charge in respect of prior periods	( 1,363)	3,123
Effect of expenses not deductible for tax purposes	1,269	1,042
Rounding on tax charge	11	140
Effect of change in corporation tax rate	( 2,867)	18,369
Depreciation on assets not qualifying for tax allowances	4,418	2,747
Draft provision at effective rate	(1,419)	849
Tax relief on enhanced capital allowances	(295)	(609)
	------------	---------
Tax on profit	214,074	139,435
	------------	---------

13. Intangible assets

	Goodwill
	£
Cost
At 1 April 2022 and 31 March 2023	35,000
	--------
Amortisation
At 1 April 2022 and 31 March 2023	35,000
	--------
Carrying amount
At 31 March 2023	–
	--------
At 31 March 2022	–
	--------

14. Tangible assets

	Fixtures and fittings	Motor vehicles	Total
	£	£	£
Cost
At 1 April 2022	597,569	135,557	733,126
Additions	6,025	119,418	125,443
Disposals	–	( 130,662)	( 130,662)
	---------	---------	---------
At 31 March 2023	603,594	124,313	727,907
	---------	---------	---------
Depreciation
At 1 April 2022	291,210	36,833	328,043
Charge for the year	78,116	28,385	106,501
Disposals	–	( 41,542)	( 41,542)
	---------	---------	---------
At 31 March 2023	369,326	23,676	393,002
	---------	---------	---------
Carrying amount
At 31 March 2023	234,268	100,637	334,905
	---------	---------	---------
At 31 March 2022	306,359	98,724	405,083
	---------	---------	---------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31 March 2023	97,027
	--------
At 31 March 2022	98,724
	--------

15. Stocks

	2023	2022
	£	£
Finished goods and goods for resale	4,748,307	6,354,245
	------------	------------

16. Debtors

	2023	2022
	£	£
Trade debtors	906,001	342,603
Amounts owed by undertakings in which the company has a participating interest	10,127,646	5,930,675
Prepayments and accrued income	62,592	109,852
Other debtors	349,627	553,587
	-------------	------------
	11,445,866	6,936,717
	-------------	------------

17. Creditors: amounts falling due within one year

	2023	2022
	£	£
Bank loans and overdrafts	1,531,885	2,700,795
Trade creditors	520,959	924,527
Amounts owed to undertakings in which the company has a participating interest	3,504,822	–
Accruals and deferred income	50,328	61,027
Corporation tax	227,613	115,917
Social security and other taxes	310,307	132,504
Obligations under finance leases and hire purchase contracts	18,414	21,733
Director loan accounts	676,122	867,079
Other creditors	13,186	6,673
	------------	------------
	6,853,636	4,830,255
	------------	------------

18. Creditors: amounts falling due after more than one year

	2023	2022
	£	£
Bank loans and overdrafts	1,176,948	1,462,737
Obligations under finance leases and hire purchase contracts	87,821	46,994
	------------	------------
	1,264,769	1,509,731
	------------	------------

All creditors falling due after more than one year are repayable within 5 years.

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2023	2022
	£	£
Not later than 1 year	18,414	21,733
Later than 1 year and not later than 5 years	87,821	46,994
	---------	--------
	106,235	68,727
	---------	--------

20. Provisions

	Deferred tax (note 22)
	£
At 1 April 2022	79,663
Additions	( 13,363)
	--------
At 31 March 2023	66,300
	--------

21. Loans and overdrafts

On 18 December 2020, the company drew down a Covid Business Interruption Loan of £1,200,000 from its bankers HSBC. The loan carries interest at 3.99% above base rate rate and is repayable in equal instalments over 5 years. Repayments did not commence until 12 months after drawdown and no interest was payable by the company in that 12 month period.

On 18 December 2020, the company also drew down an additional loan facility of £750,000 from HSBC. The loan carries interest at 2% above base rate and is repayable, by instalments, 5 years from the date of drawdown.

The company's bank borrowings are secured by a fixed and floating charge over the assets of the company.

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2023	2022
	£	£
Included in provisions (note 20)	66,300	79,663
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2023	2022
	£	£
Accelerated capital allowances	66,300	79,663
	--------	--------

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 14,250 (2022: £ 12,616 ).

24. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2023	2022
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	35,942
	----	--------

25. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	2023	2022
	£	£

Financial assets that are debt instruments measured at amortised cost

Financial assets that are debt instruments measured at amortised cost	11,381,616	6,826,865
	-------------	------------

Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost	7,533,455	6,091,565
	------------	------------

26. Called up share capital

Issued, called up and fully paid

	2023		2022
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

27. Analysis of changes in net debt

	At 1 Apr 2022	Cash flows	At 31 Mar 2023
	£	£	£
Cash at bank and in hand	1,531,038	(154,051)	1,376,987
Debt due within one year	(2,722,528)	1,172,229	(1,550,299)
Debt due after one year	(1,509,731)	244,962	(1,264,769)
	------------	------------	------------
	( 2,701,221)	1,263,140	( 1,438,081)
	------------	------------	------------

28. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2023	2022
	£	£
Not later than 1 year	548,560	446,485
Later than 1 year and not later than 5 years	1,401,532	1,581,973
	------------	------------
	1,950,092	2,028,458
	------------	------------

29. Contingencies

The directors are aware that HMRC is challenging the tax treatment of transactions entered into in prior years. The directors are vigorously contesting HMRC's view and do not consider it probable that any further liabilities to the company will arise.

USB International Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2023

30. Related party transactions

Remuneration of key management personnel: All of the key management personnel of the company are directors. The directors are not remunerated through this company other than the directors pension contributions as detailed in note 9. Transactions with related parties: Mr U and Mrs M Agarwal own a property from which USB International Limited now operates from, and transactions were made during the year to the value of:- Rent of warehouse £505,000 (2022: £403,333) Debtors includes loans of £10,127,646 (2022: £5,930,675) being amounts due from companies and other related parties in which the directors have an interest. These loans are interest free and repayable on demand. Creditors includes a loan of £3,504,822 (2022: £nil) being an amount due from a company in which the directors have an interest. Interest of £4,822 (2022: £nil) was charged during the year. The loan is repayable within 1 year.

31. Controlling party

The ultimate controlling parties are Mr U and Mrs M Agarwal , by virtue of their shareholdings as described in the directors report.