Indus Foods Limited - Limited company accounts 23.2
Indus Foods Limited - Limited company accounts 23.2
| REGISTERED NUMBER: 02430421 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2023 |
| FOR |
| INDUS FOODS LIMITED |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 June 2023 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 8 |
| Consolidated Other Comprehensive Income | 9 |
| Consolidated Balance Sheet | 10 |
| Company Balance Sheet | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Financial Statements | 17 |
| INDUS FOODS LIMITED |
| COMPANY INFORMATION |
| for the year ended 30 June 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| Seven Stars House |
| 1 Wheler Road |
| Coventry |
| CV3 4LB |
| BANKERS: | Natwest Bank plc |
| Bolton Corporate Service Centre |
| Parklands, De Havilland Way |
| Horwich |
| Bolton |
| BL6 4YU |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| GROUP STRATEGIC REPORT |
| for the year ended 30 June 2023 |
| The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
| REVIEW OF BUSINESS |
| On 8 April 2022, the company acquired 100% of Moorcroft Holdings Limited, an entity previously under common ownership and a new group of companies was formed. |
| The group has maintained its market share this year with turnover of £15,120,350 (2022: £15,554,865). Gross profit margin has also been consistent in percentage terms during this period. |
| Management have continued to seek to expand operations following improvements to the site facilities, with a new warehouse development being completed and in use from part way 2021 financial year. |
| Overall, management are satisfied with this level of performance in the current trading environment. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The group's principal exposure to risks are through pricing volatility, both as a result of changes in prices of products and through exchange rate fluctuations, as management are in part reliant on suppliers based overseas. |
| Management are mindful of these key risks to the business and have adopted strategies, which include: continued scrutiny of pricing and rates of exchange; sourcing of product from various suppliers; and management of its purchase cycle. |
| Management also acknowledge exposure to interest rate and credit risks and these are also assessed continuously in order to minimise their impact. |
| FUTURE DEVELOPMENTS |
| Management's focus has continued to be on purchasing strategy and this has been assisted with the new warehouse development that became operational during the prior year with this year being the first full year of operation. |
| Trading has been steady in the financial year and the group and company appears well placed to trade through any remaining uncertainty in the wake of past events. |
| With a solid balance sheet and other credit facilities in place, management believe the group and company will be able to continue to invest in its working capital needs and pay its debts as they fall due for the foreseeable future. This being further supported by refinancing of debt facilities after the year end. |
| The group's and company's strategy for 2023-24 and beyond remains one of growth, although management are mindful that the next 12 months may be challenging. Nevertheless, the directors believe the group and company to be a going concern and have adopted this assumption in preparing the financial statements. |
| ON BEHALF OF THE BOARD: |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| REPORT OF THE DIRECTORS |
| for the year ended 30 June 2023 |
| The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of wholesale grocery and packaging. |
| DIVIDENDS |
| The total distribution of ordinary dividends for the year ended 30 June 2023 will be £100,000 (2022: £100,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
| T I Areehy |
| Ms N K Areehy |
| Z A Chaudhary |
| CHARITABLE DONATIONS AND EXPENDITURE |
| During the year the group/ company made charitable donations of £5,000 (2022: £25,000). |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The group's review of business, principal risks and uncertainties and future developments are disclosed within the strategic report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group 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 the group 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; |
| - | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| REPORT OF THE DIRECTORS |
| for the year ended 30 June 2023 |
| 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| INDUS FOODS LIMITED |
| Opinion |
| We have audited the financial statements of Indus Foods Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 June 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. |
| 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 group 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 the 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| INDUS FOODS LIMITED |
| 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 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 group's and 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 group or the parent 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| The audit process includes an assessment of the group's and entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the group and company must comply in the ordinary course of its business. |
| Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
| As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| INDUS FOODS LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| Seven Stars House |
| 1 Wheler Road |
| Coventry |
| CV3 4LB |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONSOLIDATED |
| INCOME STATEMENT |
| for the year ended 30 June 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| TURNOVER | 3 | 15,070,350 | 15,554,865 |
| Cost of sales | 12,454,609 | 12,695,589 |
| GROSS PROFIT | 2,615,741 | 2,859,276 |
| Administrative expenses | 2,075,658 | 2,307,192 |
| 540,083 | 552,084 |
| Other operating income | 6,127 | 6,127 |
| OPERATING PROFIT | 5 | 546,210 | 558,211 |
| Other gains | 6 | - | 40,627 |
| 546,210 | 598,838 |
| Interest payable and similar expenses | 7 | 150,768 | 142,920 |
| PROFIT BEFORE TAXATION | 395,442 | 455,918 |
| Tax on profit | 8 | 123,414 | 101,038 |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 272,028 | 354,880 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONSOLIDATED |
| OTHER COMPREHENSIVE INCOME |
| for the year ended 30 June 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 272,028 | 354,880 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
272,028 |
354,880 |
| Total comprehensive income attributable to: |
| Owners of the parent | 272,028 | 354,880 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONSOLIDATED BALANCE SHEET |
| 30 June 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 3,765 | 5,647 |
| Tangible assets | 12 | 3,181,914 | 3,279,873 |
| Investments | 13 | 15,000 | 15,000 |
| 3,200,679 | 3,300,520 |
| CURRENT ASSETS |
| Stocks | 14 | 2,860,281 | 3,704,891 |
| Debtors | 15 | 2,543,289 | 2,729,085 |
| Investments | 16 | 30 | 30 |
| Cash at bank and in hand | 469,981 | 391,674 |
| 5,873,581 | 6,825,680 |
| CREDITORS |
| Amounts falling due within one year | 17 | 4,174,655 | 4,229,946 |
| NET CURRENT ASSETS | 1,698,926 | 2,595,734 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
4,899,605 |
5,896,254 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(976,836 |
) |
(2,180,686 |
) |
| PROVISIONS FOR LIABILITIES | 22 | (148,854 | ) | (113,681 | ) |
| NET ASSETS | 3,773,915 | 3,601,887 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 60,000 | 60,000 |
| Capital redemption reserve | 24 | 635,000 | 635,000 |
| Retained earnings | 24 | 3,078,915 | 2,906,887 |
| SHAREHOLDERS' FUNDS | 3,773,915 | 3,601,887 |
| The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by: |
| T I Areehy - Director |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| COMPANY BALANCE SHEET |
| 30 June 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| CURRENT ASSETS |
| Stocks | 14 |
| Debtors | 15 |
| Investments | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Capital redemption reserve | 24 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 247,684 | 305,344 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the year ended 30 June 2023 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 July 2021 | 50,000 | 2,652,007 | 635,000 | 3,337,007 |
| Changes in equity |
| Issue of share capital | 10,000 | - | - | 10,000 |
| Dividends | - | (100,000 | ) | - | (100,000 | ) |
| Total comprehensive income | - | 354,880 | - | 354,880 |
| Balance at 30 June 2022 | 60,000 | 2,906,887 | 635,000 | 3,601,887 |
| Changes in equity |
| Dividends | - | (100,000 | ) | - | (100,000 | ) |
| Total comprehensive income | - | 272,028 | - | 272,028 |
| Balance at 30 June 2023 | 60,000 | 3,078,915 | 635,000 | 3,773,915 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the year ended 30 June 2023 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 July 2021 |
| Changes in equity |
| Issue of share capital | - | - |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 30 June 2022 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 30 June 2023 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 June 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,354,465 | 656,077 |
| Interest paid | (145,389 | ) | (137,808 | ) |
| Interest element of hire purchase payments paid |
(5,379 |
) |
(5,112 |
) |
| Tax paid | (91,189 | ) | (1,957 | ) |
| Net cash from operating activities | 1,112,508 | 511,200 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | - | (7,529 | ) |
| Purchase of tangible fixed assets | - | (65,731 | ) |
| Sale of tangible fixed assets | - | 5,000 |
| Net cash acquired with subsidiary | - | 1,199 |
| Net cash from investing activities | - | (67,061 | ) |
| Cash flows from financing activities |
| New loans in year | - | 300,000 |
| Loan repayments in year | (259,737 | ) | (338,142 | ) |
| Capital repayments in year | (74,707 | ) | (79,252 | ) |
| Amount withdrawn by directors | (76,011 | ) | (106,012 | ) |
| Equity dividends paid | (60,000 | ) | (60,000 | ) |
| Net cash from financing activities | (470,455 | ) | (283,406 | ) |
| Increase in cash and cash equivalents | 642,053 | 160,733 |
| Cash and cash equivalents at beginning of year |
2 |
(172,072 |
) |
(332,805 |
) |
| Cash and cash equivalents at end of year | 2 | 469,981 | (172,072 | ) |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 June 2023 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2023 | 2022 |
| £ | £ |
| Profit before taxation | 395,442 | 455,918 |
| Depreciation charges | 108,841 | 122,097 |
| Loss on disposal of fixed assets | - | 19,789 |
| Other gains | - | (40,627 | ) |
| Finance costs | 150,768 | 142,920 |
| 655,051 | 700,097 |
| Decrease/(increase) in stocks | 844,610 | (312,544 | ) |
| Decrease in trade and other debtors | 135,429 | 609,948 |
| Decrease in trade and other creditors | (280,625 | ) | (341,424 | ) |
| Cash generated from operations | 1,354,465 | 656,077 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 June 2023 |
| 30.6.23 | 1.7.22 |
| £ | £ |
| Cash and cash equivalents | 469,981 | 391,674 |
| Bank overdrafts | - | (563,746 | ) |
| 469,981 | (172,072 | ) |
| Year ended 30 June 2022 |
| 30.6.22 | 1.7.21 |
| £ | £ |
| Cash and cash equivalents | 391,674 | 324,342 |
| Bank overdrafts | (563,746 | ) | (657,147 | ) |
| (172,072 | ) | (332,805 | ) |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 30 June 2023 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| Other |
| non-cash |
| At 1.7.22 | Cash flow | changes | At 30.6.23 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank |
| and in hand | 391,674 | 78,307 | 469,981 |
| Bank overdrafts | (563,746 | ) | 563,746 | - |
| (172,072 | ) | 642,053 | 469,981 |
| Liquid resources |
| Current asset |
| investments | 30 | - | - | 30 |
| 30 | - | - | 30 |
| Debt |
| Finance leases | (127,235 | ) | 74,707 | - | (61,528 | ) |
| Debts falling due |
| within 1 year | (1,370,611 | ) | (771,850 | ) | - | (2,142,461 | ) |
| Debts falling due |
| after 1 year | (1,734,956 | ) | 1,061,295 | - | (673,661 | ) |
| (3,232,802 | ) | 364,152 | - | (2,877,650 | ) |
| Total | (3,404,844 | ) | 1,006,205 | - | (2,407,639 | ) |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 30 June 2023 |
| 1. | STATUTORY INFORMATION |
| Indus Foods Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The accounts have been prepared in accordance with applicable accounting standards. The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. |
| On 8 April 2022, the company acquired a subsidiary undertaking, Moorcroft Holdings Limited and the financial statements for 2022 show the consolidated financial performance and financial position, whereas the comparatives show these for the company only. Accordingly, the current and prior year financial statements are not entirely comparable. |
| Basis of consolidation |
| The group financial statements consolidate the financial statements of Indus Foods Limited and its subsidiary undertaking drawn up to the last day of June each year, after eliminating all intercompany balances and transactions, using the purchase method of accounting. |
| Indus Foods Limited includes in the consolidation those subsidiary entities where control is established. Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| The group and company make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
| Accounting estimates: |
| i) Inventory provisioning |
| The group and company hold significant levels of inventory - generally one quarter's trade - at any point. The inventory held is monitored by management to ensure appropriate provisions are made in respect of items of stock which are out of date or which are selling slowly. See note 14 to the financial statements for further disclosure. |
| ii) Impairment of debtors |
| The group and company make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 to the financial statements for further disclosure. |
| Accounting judgements: |
| iii) Operating leases |
| The group and company utilise assets which it does not own and pays for on an ongoing basis. In making the judgement as to whether such arrangements constitute finance leases or operating leases, management have assessed where the substantial risk and rewards of the ownership of the assets fall, and assessed that the counter-party, rather than the group or company, bears substantially all of the risks and rewards of ownership of the assets. |
| Turnover |
| Sale of goods |
| Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on delivery of the goods. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Freehold property - 2% on cost |
| Leasehold improvement - 2% on cost |
| Plant & machinery - 10% on cost |
| Motor vehicles - 25% on cost |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage. |
| Financial instruments |
| Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
| Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Pension costs and other post-retirement benefits |
| The company and group operate a defined contribution pension scheme. Contributions payable to the scheme are charged to profit or loss in the period to which they relate. |
| The company and group have in place an employer financed retirement benefit scheme for the benefits of officers, employees and their wider families. The scheme is known as The Indus Foods Limited 2011 Employer Finances Retirement Benefit Scheme ("The scheme"). |
| The company and group do not include the assets and liabilities of the scheme on its balance sheet to the extent that they consider that they will not retain any economic benefit from the assets of the scheme and will not have control of the rights or other access to those present economic benefits. |
| Share capital |
| Share capital is treated as an equity instrument where there is evidence of a residual interest in the assets of an entity after deducting all its liabilities. Accordingly, a financial instrument is treated as equity if: |
| - there is no contractual obligation to deliver cash or other financial assets or to exchange financial assets or liabilities on terms that may be unfavourable; and |
| - the instrument is a non-derivative that contains no contractual obligations to deliver a variable number of shares or is a derivative that will be settled only by the company exchanging a fixed amount of cash or other assets for a fixed number of the company's own equity instruments. |
| Where shares are issued for a value in excess of their nominal value, the resultant premium is included in a share premium account. |
| Dividends |
| Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by shareholders. These amounts are recognised in the statement of changes in equity. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2023 | 2022 |
| £ | £ |
| United Kingdom | 14,640,419 | 15,074,029 |
| Europe | 429,931 | 480,836 |
| 15,070,350 | 15,554,865 |
| All turnover in the current and prior year was derived from the sale of goods. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2023 | 2022 |
| £ | £ |
| Wages and salaries | 1,150,471 | 1,017,991 |
| Social security costs | 80,649 | 71,430 |
| Other pension costs | 21,506 | 14,212 |
| 1,252,626 | 1,103,633 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2023 | 2022 |
| Administration and support |
| During the year, the group and company incurred additional warehouse agency fees of £147,950 (2022: £269,016). |
| 2023 | 2022 |
| £ | £ |
| Directors' remuneration | 58,292 | 58,292 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2023 | 2022 |
| £ | £ |
| Depreciation - owned assets | 72,735 | 86,929 |
| Depreciation - assets on hire purchase contracts | 34,224 | 33,286 |
| Loss on disposal of fixed assets | - | 19,789 |
| Computer software amortisation | 1,882 | 1,882 |
| Auditors' remuneration | 10,000 | 9,500 |
| Foreign exchange differences | (133,778 | ) | (51,824 | ) |
| Operating leases - land and buildings | 25,000 | 25,000 |
| Deferred capital grant | (6,126 | ) | (6,126 | ) |
| 6. | OTHER GAINS |
| 2023 | 2022 |
| £ | £ |
| Other gains | - | 40,627 |
| Other gains of £nil (2022: £40,627) have arisen as a result of a bargain purchase adjustment following the acquisition of the entire issued capital of the company's subsidiary undertaking, Moorcroft Holdings Limited, the details of which are disclosed in notes 13 and 27. |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2023 | 2022 |
| £ | £ |
| Bank interest | 43,142 | 20,783 |
| Bank loan interest | 22,371 | 8,650 |
| Other interest | 79,876 | 108,375 |
| Hire purchase | 5,379 | 5,112 |
| 150,768 | 142,920 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2023 | 2022 |
| £ | £ |
| Current tax: |
| UK corporation tax | 88,358 | 81,285 |
| Prior year tax | (117 | ) | - |
| Total current tax | 88,241 | 81,285 |
| Deferred tax | 35,173 | 19,753 |
| Tax on profit | 123,414 | 101,038 |
| UK corporation tax has been charged at 20.50 % (2022 - 19 %). |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2023 | 2022 |
| £ | £ |
| Profit before tax | 395,442 | 455,918 |
| Profit multiplied by the standard rate of corporation tax in the UK of 20.500 % (2022 - 19 %) |
81,066 |
86,624 |
| Effects of: |
| Expenses not deductible for tax purposes | 1,663 | 4,847 |
| Income not taxable for tax purposes | (449 | ) | (9,411 | ) |
| Depreciation in excess of capital allowances | 41,251 | 18,978 |
| Adjustments to tax charge in respect of previous periods | (117 | ) | - |
| Total tax charge | 123,414 | 101,038 |
| During the year the UK corporation tax has been charged at 20.5% (2022: 19%). |
| From April 2023 the UK corporation tax rate increased from 19% to 25% and is set to remain at 25% for the foreseeable future. |
| The effective rate for the year under review was 20.5% |
| 9. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 10. | DIVIDENDS |
| 2023 | 2022 |
| £ | £ |
| Interim | 100,000 | 100,000 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Computer |
| software |
| £ |
| COST |
| At 1 July 2022 |
| and 30 June 2023 | 7,529 |
| AMORTISATION |
| At 1 July 2022 | 1,882 |
| Amortisation for year | 1,882 |
| At 30 June 2023 | 3,764 |
| NET BOOK VALUE |
| At 30 June 2023 | 3,765 |
| At 30 June 2022 | 5,647 |
| Company |
| Computer |
| software |
| £ |
| COST |
| At 1 July 2022 |
| and 30 June 2023 |
| AMORTISATION |
| At 1 July 2022 |
| Amortisation for year |
| At 30 June 2023 |
| NET BOOK VALUE |
| At 30 June 2023 |
| At 30 June 2022 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold |
| land and | Plant & | Motor |
| buildings | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 July 2022 | 3,071,314 | 667,406 | 140,806 | 3,879,526 |
| Additions | - | - | 9,000 | 9,000 |
| At 30 June 2023 | 3,071,314 | 667,406 | 149,806 | 3,888,526 |
| DEPRECIATION |
| At 1 July 2022 | 72,949 | 410,348 | 116,356 | 599,653 |
| Charge for year | 46,283 | 46,451 | 14,225 | 106,959 |
| At 30 June 2023 | 119,232 | 456,799 | 130,581 | 706,612 |
| NET BOOK VALUE |
| At 30 June 2023 | 2,952,082 | 210,607 | 19,225 | 3,181,914 |
| At 30 June 2022 | 2,998,365 | 257,058 | 24,450 | 3,279,873 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant & | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 July 2022 | 201,253 | 44,650 | 245,903 |
| Additions | - | 9,000 | 9,000 |
| At 30 June 2023 | 201,253 | 53,650 | 254,903 |
| DEPRECIATION |
| At 1 July 2022 | 37,339 | 22,325 | 59,664 |
| Charge for year | 22,124 | 12,100 | 34,224 |
| At 30 June 2023 | 59,463 | 34,425 | 93,888 |
| NET BOOK VALUE |
| At 30 June 2023 | 141,790 | 19,225 | 161,015 |
| At 30 June 2022 | 163,914 | 22,325 | 186,239 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Leasehold | Plant & | Motor |
| improvements | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 July 2022 |
| Additions |
| At 30 June 2023 |
| DEPRECIATION |
| At 1 July 2022 |
| Charge for year |
| At 30 June 2023 |
| NET BOOK VALUE |
| At 30 June 2023 |
| At 30 June 2022 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant & | Motor |
| machinery | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 July 2022 |
| Additions |
| At 30 June 2023 |
| DEPRECIATION |
| At 1 July 2022 |
| Charge for year |
| At 30 June 2023 |
| NET BOOK VALUE |
| At 30 June 2023 |
| At 30 June 2022 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 13. | FIXED ASSET INVESTMENTS |
| Group |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 July 2022 |
| and 30 June 2023 | 15,000 |
| NET BOOK VALUE |
| At 30 June 2023 | 15,000 |
| At 30 June 2022 | 15,000 |
| Company |
| Shares in |
| group | Unlisted |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST |
| At 1 July 2022 |
| and 30 June 2023 | 25,000 |
| NET BOOK VALUE |
| At 30 June 2023 | 25,000 |
| At 30 June 2022 | 25,000 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: 75 Sampson Road North, Birmingham, B11 1BH |
| Nature of business: |
| % |
| Class of shares: | holding |
| On 8 April 2022, as part of a group reconstruction, Indus Foods Limited acquired the entire issued share capital of Moorcroft Holdings by way of a share for share exchange, at a cost of £10,000. |
| 14. | STOCKS |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Stocks | 2,860,281 | 3,704,891 |
| An impairment loss of £142,651 (2022: £nil) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 15. | DEBTORS |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 2,159,291 | 2,178,192 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 148,424 | 274,411 |
| VAT | 5,000 | 36,526 |
| Prepayments and accrued income | 87,871 | 46,887 |
| 2,400,586 | 2,536,016 |
| Amounts falling due after more than one | year: |
| Other debtors | 142,703 | 193,069 |
| Aggregate amounts | 2,543,289 | 2,729,085 |
| An impairment loss of £43,338 (2022: £67,812) was recognised against trade and other debtors during the year. |
| All debtors are financial assets that are debt instruments measured at amortised cost. |
| 16. | CURRENT ASSET INVESTMENTS |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Unlisted investments | 30 | 30 | 30 | 30 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 798,071 | 1,365,754 |
| Other loans (see note 19) | 1,344,390 | 568,603 |
| Hire purchase contracts (see note 20) | 56,056 | 84,574 |
| Trade creditors | 1,342,334 | 1,515,739 |
| Tax | 88,326 | 91,274 |
| Social security and other taxes | 75,749 | 55,305 |
| Other creditors | 286,718 | 384,295 |
| Pension creditor | 27,523 | 10,441 | 27,523 | 10,441 |
| Accruals and deferred income | 155,488 | 153,961 |
| 4,174,655 | 4,229,946 |
| All creditors are financial liabilities measured at amortised cost. |
| Accruals include arrears of fixed cumulative dividends of £44,363, of which £20,732 relates to the 5% preference shares over a period between February 2013 to October 2018; and £23,631 relates to the 6% preference shares over a period between April 2014 and October 2018. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Bank loans (see note 19) | 374,738 | 458,483 |
| Other loans (see note 19) | 298,923 | 1,276,473 |
| Hire purchase contracts (see note 20) | 5,472 | 42,661 |
| Other creditors - 2-5 years | 297,703 | 403,069 |
| 976,836 | 2,180,686 |
| Within other creditors is an amount totalling £193,069 (2022: £243,436) in relation to a settlement agreement reached with HMRC for amounts that will be subsequently made good by the directors. Accordingly, a corresponding debtor is also shown within other debtors. |
| The settlement is repayable in instalments and as such, the creditor and corresponding debtor have been aged accordingly, with amounts due within one year of £50,367 (2022: £50,367), amounts due within 2-5 years of £142,703 (2022: £193,069) and amounts due in more than 5 years of £nil (2022: £nil). |
| Also included within other creditors are amounts advanced by Indus Associates Limited ORBS of £213,330 (2022: £270,000), of which £58,330 (2022: £60,000) is repayable within one year and £155,000 (2022: £210,000) is due within 2-5 years. A loan was advanced of £300,000 in December 2021 and is repayable over 5 years, at an interest rate of 2.1%. |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | - | 563,746 |
| Bank loans - less than 1 year | 798,071 | 802,008 |
| Other loans | 1,344,390 | 568,603 |
| 2,142,461 | 1,934,357 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 47,565 | 46,290 |
| Other loans - 1-2 years | 64,269 | 179,654 | 64,269 |
| 111,834 | 225,944 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 242,691 | 257,351 |
| Other loans - 2-5 years | 192,806 | 988,959 |
| 435,497 | 1,246,310 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans - more than 5 years | 84,482 | 154,842 | - | - |
| Other loans more 5yrs instal | 41,848 | 107,860 | 41,848 | 107,860 |
| 126,330 | 262,702 | 41,848 | 107,860 |
| Other loans include loans due within one year from directors of £368,583 (2022: £388,949). These loans are unsecured, do not attract interest and are repayable on demand. |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2023 | 2022 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 56,056 | 84,574 |
| Between one and five years | 5,472 | 42,661 |
| 61,528 | 127,235 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 20. | LEASING AGREEMENTS - continued |
| Company |
| Hire purchase contracts |
| 2023 | 2022 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Group |
| Non-cancellable operating | leases |
| 2023 | 2022 |
| £ | £ |
| Within one year | 18,750 | 25,000 |
| Between one and five years | - | 18,750 |
| 18,750 | 43,750 |
| Company |
| Non-cancellable operating | leases |
| 2023 | 2022 |
| £ | £ |
| Within one year |
| Between one and five years |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Bank overdraft | - | 563,746 |
| Bank loans | 1,172,809 | 1,260,491 |
| Hire purchase contracts | 61,528 | 127,235 | 61,528 | 127,235 |
| Other loans | 911,538 | 1,026,923 | 911,538 | 1,026,923 |
| Other creditors | 213,330 | 270,000 | 213,330 | 270,000 |
| 2,359,205 | 3,248,395 |
| Bank borrowings are secured by fixed charges over all properties, plant and equipment, stocks and securities, book and other debts; and by a floating charge on all other property and assets present and future. |
| HP loans are secured on the relevant assets under the finance agreement, to which they relate. |
| Other loans include the following:- |
| A finance facility agreement which was originally secured totalling £1,500,000 in respect of the refurbishment and rebuild of premises at Sampson Road North, as shown within leasehold improvements. |
| These loans incur interest at a fixed rate of 6%, paid quarterly in arrears on the outstanding balance of the loans. The loans are secured via the following: |
| - A debenture from the Borrower in favour of the Lender; |
| - a personal guarantee of £400,000 made by the directors; |
| - an inter-company guarantee limited to £1,500,000 and supported by a second legal charge |
| over the property to which this building work relates; and |
| - the subordination of directors loan monies and preference shares. |
| Other creditors represent amounts advanced by Indus Associates Limited ORBS, as stated in notes 17 and 18 to the financial statements and are secured by charges held over the shares of T I Areehy, director, and another family shareholder, both of whom are Trustees of Indus Associates Limited ORBS. |
| 22. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 148,854 | 113,681 | 148,854 | 113,681 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 July 2022 | 113,681 |
| Provided during year | 35,173 |
| Balance at 30 June 2023 | 148,854 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 22. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 July 2022 |
| Provided during year |
| Balance at 30 June 2023 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted and issued: |
| Number: | Class: | Nominal | 2023 | 2022 |
| value: | £ | £ |
| 60,000 | Ordinary | £1 | 60,000 | 60,000 |
| 10,000 Ordinary shares of £1 each were issued during the prior year in exchange for 10,000 Ordinary shares acquired in Moorcroft Holdings Limited. |
| All Ordinary shares rank pari passu with respect to voting rights, the rights to distribution of dividends and the repayment of capital. |
| 24. | RESERVES |
| Group |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 July 2022 | 2,906,887 | 635,000 | 3,541,887 |
| Profit for the year | 272,028 | 272,028 |
| Dividends | (100,000 | ) | (100,000 | ) |
| At 30 June 2023 | 3,078,915 | 635,000 | 3,713,915 |
| Company |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 July 2022 | 3,492,351 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| At 30 June 2023 | 3,640,035 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 24. | RESERVES - continued |
| Retained earnings |
| This reserve represents all current and prior year retained profits and losses. |
| Capital redemption reserve |
| This reserves represents the nominal value of shares repurchased by the company. |
| 25. | PENSION COMMITMENTS |
| The company and group operate a defined contribution pension scheme in respect of certain employees and directors. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and group and amounted to £21,506 (2022: £14,212). |
| Included within creditors is a balance due to pension providers of £11,723 (2022: £5,064) representing contributions owed to the funds from the company/ group at the year end. |
| 26. | RELATED PARTY DISCLOSURES |
| Ordinary dividends to directors |
| T I Areehy received ordinary dividends of £20,000 (2022: £20,000). |
| N K Areehy received ordinary dividends of £20,000 (2022: £20,000). |
| Z A Choudhary received ordinary dividends of £nil in the current and prior year. |
| Directors' interest on loans |
| T I Areehy earned interest of £3,953 (2022: £4,640) on loans advanced. The loan balance owed at the year end amounted to £110,737 (2022: £130,865). |
| N K Areehy earned interest of £4,603 (2022: £5,402) on loans advanced. The loan balance owed at the year end amounted to £128,933 (2022: £152,367). |
| Z A Choudhary earned interest of £4,411 (2022: £5,176) on loans advanced. The loan balance owed at the year end amounted to £123,522 (2022: £145,972). |
| Other family members |
| Other family members were voted dividends of £52,000 (2022: £52,000). |
| Indus Associates Limited ORBS - related pension scheme |
| 2023 | 2022 |
| £ | £ |
| Rent | 39,500 | 39,500 |
| Interest payable | 5,775 | 3,150 |
| Loan received | - | 300,000 |
| Amount due to related party | 225,755 | 288,050 |
| Alnoor Education Foundation Limited - a charitable company under common influence |
| 2023 | 2022 |
| £ | £ |
| Donations | 5,000 | 25,000 |
| Dividends paid | 8,000 | 8,000 |
| Amount due from related party | 87,024 | 87,024 |
| INDUS FOODS LIMITED (REGISTERED NUMBER: 02430421) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 30 June 2023 |
| 26. | RELATED PARTY DISCLOSURES - continued |
| Sanam Foods Ltd - entity controlled by son of Z Choudhary, director |
| 2023 | 2022 |
| £ | £ |
| Warehouse agency fees | 147,950 | 269,016 |
| Amount due to related party | 10,692 | 1,092 |
| Indus Food (Europe) B.V. - entity controlled by a director |
| 2023 | 2022 |
| £ | £ |
| Sales | 20,297 | 164,596 |
| Loan advanced | 28,896 | 99,988 |
| Loan repayment | 160,538 | - |
| Amount due from related party | - | 100,890 |
| Amount due to related party | 10,456 | - |
| Key management are considered to be the directors, whose remuneration is disclosed in the preceding notes to these financial statements. |
| 27. | ACQUISITION OF SUBSIDIARY |
| On 8 April 2022, Indus Foods Limited acquired 100% of the issued share capital of Moorcroft Holdings Limited. |
| Indus Foods Limited gave the following consideration for the net assets of Moorcroft Holdings Limited: |
Book value |
Fair value adjustment |
Fair value |
| £ | £ | £ |
| Ordinary shares issued in exchange | 10,000 | - | 10,000 |
| Total | 10,000 | - | 10,000 |
| The net assets of Moorcroft Holdings Limited were adjusted to fair value as follows: |
Asset / Liability |
Book value |
Fair value adjustment |
Fair value |
| £ | £ | £ |
| Fixed assets | 757,173 | - | 757,173 |
| Current assets | 1,199 | - | 1,199 |
| Current liabilities | (707,745 | ) | - | (707,745 | ) |
| Total | 50,627 | - | 50,627 |
| The acquisition of Moorcroft Holdings Limited gave rise to a purchase gain of £40,627 in 2022. |
| 28. | CONTROLLING INTERESTS |
| There is no overall controlling party or parties. |