Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-312022-12-312022-01-01falseNo description of principal activityfalsetrue 06345932 2022-01-01 2022-12-31 06345932 2021-01-01 2021-12-31 06345932 2022-12-31 06345932 2021-12-31 06345932 1 2022-01-01 2022-12-31 06345932 d:Director1 2022-01-01 2022-12-31 06345932 c:Buildings 2022-01-01 2022-12-31 06345932 c:PlantMachinery 2022-01-01 2022-12-31 06345932 c:FurnitureFittings 2022-01-01 2022-12-31 06345932 c:ComputerEquipment 2022-01-01 2022-12-31 06345932 c:Goodwill 2022-01-01 2022-12-31 06345932 c:CurrentFinancialInstruments 2022-12-31 06345932 c:CurrentFinancialInstruments 2021-12-31 06345932 c:Non-currentFinancialInstruments 2022-12-31 06345932 c:Non-currentFinancialInstruments 2021-12-31 06345932 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 06345932 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 06345932 c:ShareCapital 2022-12-31 06345932 c:ShareCapital 2021-12-31 06345932 c:RetainedEarningsAccumulatedLosses 2022-12-31 06345932 c:RetainedEarningsAccumulatedLosses 2021-12-31 06345932 c:RetainedEarningsAccumulatedLosses 2021-01-01 06345932 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 06345932 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 06345932 d:FRS102 2022-01-01 2022-12-31 06345932 d:Audited 2022-01-01 2022-12-31 06345932 d:FullAccounts 2022-01-01 2022-12-31 06345932 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 06345932 c:Subsidiary1 2022-01-01 2022-12-31 06345932 c:Subsidiary1 1 2022-01-01 2022-12-31 06345932 c:Subsidiary2 2022-01-01 2022-12-31 06345932 c:Subsidiary2 1 2022-01-01 2022-12-31 06345932 c:Subsidiary3 2022-01-01 2022-12-31 06345932 c:Subsidiary3 1 2022-01-01 2022-12-31 06345932 d:SmallCompaniesRegimeForAccounts 2022-01-01 2022-12-31 06345932 d:Consolidated 2022-12-31 06345932 d:ConsolidatedGroupCompanyAccounts 2022-01-01 2022-12-31 06345932 2 2022-01-01 2022-12-31 06345932 6 2022-01-01 2022-12-31 iso4217:GBP xbrli:pure

Registered number: 06345932









KHANNA ENTERPRISES (HOLDINGS) LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2022

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022

As restated
2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 4 
-
1,712,132

Tangible assets
 5 
24,359,977
39,491,765

  
24,359,977
41,203,897

Current assets
  

Stocks
  
4,932
27,012

Debtors
 7 
1,633,099
307,156

Cash at bank and in hand
 8 
6,209,701
203,522

  
7,847,732
537,690

Creditors: amounts falling due within one year
 9 
(8,574,548)
(11,599,021)

Net current liabilities
  
 
 
(726,816)
 
 
(11,061,331)

Total assets less current liabilities
  
23,633,161
30,142,566

Creditors: amounts falling due after more than one year
 10 
(15,827,454)
(26,623,766)

Provisions for liabilities
  

Deferred taxation
 13 
-
(1,290,168)

  
 
 
-
 
 
(1,290,168)

Net assets excluding pension asset
  
7,805,707
2,228,632

Net assets
  
7,805,707
2,228,632


Capital and reserves
  

Called up share capital 
  
6
6

Profit and loss account
  
7,805,701
2,228,626

Equity attributable to owners of the parent Company
  
7,805,707
2,228,632

  
7,805,707
2,228,632


Page 1

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the consolidated statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A Khanna
Director

Date: 24 October 2023

The notes on pages 4 to 16 form part of these financial statements.

Page 2

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 6 
201
101

  
201
101

Current assets
  

Debtors
 7 
12,957,201
13,906,706

Cash at bank and in hand
 8 
767
425

  
12,957,968
13,907,131

Creditors: amounts falling due within one year
 9 
(7,407,419)
(8,421,293)

Net current assets
  
 
 
5,550,549
 
 
5,485,838

Total assets less current liabilities
  
5,550,750
5,485,939

Net assets excluding pension asset
  
5,550,750
5,485,939

Net assets
  
5,550,750
5,485,939


Capital and reserves
  

Called up share capital 
  
6
6

Profit and loss account brought forward
  
5,485,933
5,585,856

Profit/(loss) for the year
  
64,811
(99,923)

Profit and loss account carried forward
  
5,550,744
5,485,933

  
5,550,750
5,485,939


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the consolidated statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

A Khanna
Director

Date: 24 October 2023

The notes on pages 4 to 16 form part of these financial statements.

Page 3

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Khanna Enterprises (Holdings) Limited is a private company limited by shares and is registered in England and Wales, its company number is 06345932. Its registered office is Aston House, Cornwall Avenue, London, United Kingdom, N3 1LF. The principal activity of the group continued to be that of the operation of hotels.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The consolidated financial statements are prepared in pounds sterling rounded to the nearest £1. The group's functional and presentational currency is GBP.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

Page 4

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will be able to continue trading for the foreseeable future. The group has net assets of £7,805,707 (2021: £2,228,632) and net current liabilities of £726,816 (2021: £11,061,331) at the balance sheet date. Included within current liabilities are loans due to the Shareholder and companies under common control totalling £7,709,549 (2021: £8,938,278). The Shareholder has stated that he intends, without creating a contractual obligation, to provide such support as may be necessary to the group, and confirmed his commitment to provide funds to meet ongoing expenses for at least 12 months from the date of approval of the financial statements.
The director is therefore satisfied that the going concern basis is appropriate for the preparation of these financial statements.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 5

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 6

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 7

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
20%
reducing balance
Fixtures and fittings
-
20%
reducing balance
Computer equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 8

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.20

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Page 9

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.20
Financial instruments (continued)

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Employees

The average monthly number of employees, including directors, during the year was 35 (2021 - 47).


4.


Intangible assets

Group 





Goodwill

£





At 1 January 2022
2,814,462


On disposal of subsidiaries
(2,814,462)



At 31 December 2022

-





At 1 January 2022
1,102,330


Impairment losses written back
(1,102,330)



At 31 December 2022

-



Net book value



At 31 December 2022
-



At 31 December 2021
1,712,132



Page 10

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Other fixed assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2022
38,998,424
789,511
3,962,184
81,423
122,233
43,953,775


Additions
163,201
579
15,944
25,043
16,277
221,044


Disposals
-
-
-
(34,356)
-
(34,356)


Disposal of subsidiary
(14,437,697)
(733,028)
(3,879,132)
-
(138,510)
(19,188,367)



At 31 December 2022

24,723,928
57,062
98,996
72,110
-
24,952,096



Depreciation


At 1 January 2022
841,735
618,510
2,993,459
8,306
-
4,462,010


Charge for the year on owned assets
501,230
8,475
19,014
17,261
-
545,980


Disposals
-
-
-
(1,759)
-
(1,759)


Disposal of subsidiary
(808,095)
(615,862)
(2,990,155)
-
-
(4,414,112)



At 31 December 2022

534,870
11,123
22,318
23,808
-
592,119



Net book value



At 31 December 2022
24,189,058
45,939
76,678
48,302
-
24,359,977



At 31 December 2021
38,156,689
171,001
968,725
73,117
122,233
39,491,765

Page 11

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
101


Additions
100



At 31 December 2022
201





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

KE Hotels (Manchester) Limited
Ordinary
100%
KE Hotels (Bath) Limited
Ordinary
100%
KE Hotels (Newcastle) Ltd
Ordinary
100%

During the year, the group disposed of its interest in an indirect subsidiary, Abbey Hotel (Bath) Limited. The financial information relating to Abbey Hotel (Bath) Limited is included in the Profit & loss account up to the date of disposal. The group has taken advantage of exemptions available from disclosing discontinued operations in the Profit & loss account.

Page 12

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Debtors

Group

Group
As restated
Company
Company
As restated
2022
2021
2022
2021
£
£
£
£

Due after more than one year

Prepayments and accrued income
33,974
62,219
-
-

33,974
62,219
-
-

Due within one year

Trade debtors
-
40,020
-
-

Amounts owed by group undertakings
-
-
12,948,802
13,898,306

Other debtors
1,513,342
139,489
8,399
8,400

Prepayments and accrued income
85,783
65,428
-
-

1,633,099
307,156
12,957,201
13,906,706



8.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
6,209,701
203,522
767
425

6,209,701
203,522
767
425



9.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2022
2021
2022
2021
£
£
£
£

Bank loans
-
796,956
-
-

Trade creditors
200,934
657,139
-
-

Corporation tax
-
2,056
-
-

Other taxation and social security
192,873
94,764
4,455
-

Other creditors
7,855,082
9,019,529
7,384,549
8,408,278

Accruals and deferred income
325,659
1,028,577
18,415
13,015

8,574,548
11,599,021
7,407,419
8,421,293


Page 13

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Creditors: Amounts falling due after more than one year

Group
Group
2022
2021
£
£

Bank loans
15,420,121
26,457,099

Accruals and deferred income
407,333
166,667

15,827,454
26,623,766



11.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2022
2021
£
£

Amounts falling due within one year

Bank loans
-
796,956

Amounts falling due 1-2 years

Bank loans
539,987
11,681,518

Amounts falling due 2-5 years

Bank loans
14,880,134
14,775,581

15,420,121
27,254,055


The bank loan facility of £15,600,000 accrues interest at a margin of 2.8% above the Bank of England base rate and is repayable in full within 5 years. 
At the balance sheet date, the group has a loan agreement of with Clydesdale Bank PLC.


12.


Financial instruments

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
6,209,701
6,209,701
767
425




Financial assets measured at fair value through profit or loss comprise...

Page 14

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
(1,290,168)
(1,290,168)


On disposal of subsidiary
1,290,168
-



At end of year
-
(1,290,168)

Group
Group
2022
2021
£
£

Accelerated capital allowances
-
12,249

Tax losses carried forward
-
(1,302,417)

-
(1,290,168)


14.


Capital commitments





At the balance sheet date, the group had entered into an agreement to acquire hotel property, as set out in the post balance sheet event note. The group had a commitment of £17.4m, inclusive of VAT and other associated acquisiton fees. Other debtors include £1.4m paid as a deposit in respect of this transaction.


15.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administrered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £14,554 (2021 - £17,605). Contributions totalling £2,429 (2021 - £Nil) were payable to the fund at the balance sheet date.


16.


Related party transactions

At the balance sheet date, the group and company owed £6,665,607 (2021 - £6,731,580) to companies under common control.
At tje balance sheet date, the group and the company owed the director £1,043,942 (2021 - £2,051,698) and £718,942 (2021 - £1,726,698) respectively. A loan of £999,900 was made by the director to the group and accrues interest at 2.6%. All other loans are interest free and repayable on demand.

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KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Post balance sheet events

In March 2023, the group completed the acquisition of Hotel Indigo, Newcastle. A loan facility was secured post year end to faciliate completion of the aquisition.


18.


Controlling party

The group and company are controlled by the director, A Khanna, by virtue of his sole shareholding in Khanna Enterprises (Holdings)n Limited.


19.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2022 was unqualified.

The audit report was signed on 24 October 2023 by Alexander Chrysaphiades FCA (Senior statutory auditor) on behalf of Adler Shine LLP.

 
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