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Registered number: 03929881









Somani Hotels Limited









Financial statements

Information for filing with the registrar

For the Year Ended 28 February 2023

 
Somani Hotels Limited
Registered number: 03929881

Statement of financial position
As at 28 February 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 4 
1
1

Tangible assets
 5 
5,909,459
5,925,460

  
5,909,460
5,925,461

Current assets
  

Debtors: amounts falling due within one year
 6 
1,175,866
1,705,289

Cash at bank and in hand
 7 
902,539
550

  
2,078,405
1,705,839

Creditors: amounts falling due within one year
 8 
(2,194,982)
(2,027,386)

Net current liabilities
  
 
 
(116,577)
 
 
(321,547)

Total assets less current liabilities
  
5,792,883
5,603,914

Creditors: amounts falling due after more than one year
  
(1,981,276)
(2,151,808)

Provisions for liabilities
  

Deferred tax
 10 
(404,169)
(396,687)

  
 
 
(404,169)
 
 
(396,687)

Net assets
  
3,407,438
3,055,419


Capital and reserves
  

Called up share capital 
  
100
100

Revaluation reserve
 11 
2,806,904
2,827,342

Profit and loss account
 11 
600,434
227,977

  
3,407,438
3,055,419


Page 1

 
Somani Hotels Limited
Registered number: 03929881
    
Statement of financial position (continued)
As at 28 February 2023

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 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 on 9 November 2023.






................................................
Mr Hassanali Somani
Director

The notes on pages 3 to 14 form part of these financial statements.

Page 2

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

1.


General information

Somani Hotels Limited is a private company, limited by shares, registered in England and Wales. The company's principal activity, registered number and registered office address can be found on the Company Information page. The principal activity of the company in the year under review was that of hotelier known as The Bell Hotel Epping.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

At balance sheet date, the Company had net current liabilities of £116,577 (2022: £321,547). The hotel remained closed most of the year for refurbishment, though the revenue increased to £961,573 (2022: £280,182) during the year. However, the refurbishment has completed and the business has reopened after October, 2022. After making the necessary enquiries, the directors have a reasonable expectation that the company has adequate resources to continue its trade for the foreseeable future and accordingly financial statements are prepared on going concern basis. 

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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:

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 Company 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 3

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

2.Accounting policies (continued)

 
2.4

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 Statement of comprehensive income in the same period as the related expenditure.

 
2.5

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.

 
2.6

Borrowing costs

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

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 4

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

2.Accounting policies (continued)

 
2.8

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 reporting date.

 
2.9

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 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 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.

 
2.10

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.

Page 5

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2% on Straight Line
Plant and machinery
-
25% on Reducing Balance
Fixtures and fittings
-
25% on Reducing Balance
Office equipment
-
25% on Reducing Balance

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.

On transition to FRS102, the company had taken advantage of transitional relief to use previous GAAP revaluation as deemed cost on freehold property. The freehold property was revalued at £6,224,450 on 28 April 2009 by an Henry Harris BSC Hons MRICS of Edward Symmons on an open market basis. 

 
2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.12

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.

 
2.13

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.

Page 6

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

2.Accounting policies (continued)

 
2.14

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.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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 Statement of financial position.

 
2.16

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 7

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)



3.

Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Revision to accounting estimates are recognised in the period in which the estimate is revised.


4.


Intangible assets




Goodwill

£



Cost


At 1 March 2022
1



At 28 February 2023

1






Net book value



At 28 February 2023
1



At 28 February 2022
1



Page 8

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

5.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 March 2022
6,224,450
310,502
426,942
20,222
6,982,116


Additions
-
-
39,825
1,015
40,840



At 28 February 2023

6,224,450
310,502
466,767
21,237
7,022,956



Depreciation


At 1 March 2022
336,123
285,013
415,800
19,720
1,056,656


Charge for the year on owned assets
37,347
6,372
12,742
380
56,841



At 28 February 2023

373,470
291,385
428,542
20,100
1,113,497



Net book value



At 28 February 2023
5,850,980
19,117
38,225
1,137
5,909,459



At 28 February 2022
5,888,327
25,489
11,142
502
5,925,460




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
5,850,980
5,888,327

5,850,980
5,888,327


The freehold property was revalued on 28 April 2009, by Henry Harris BSc Hons MRICS of Edward Symmons, on an open market basis. The company has taken advantage of the transitional provisions available on the introduction of FRS 102 to carry those assets at that value less depreciation in subsequent years. Subsequent additions to freehold property are included at cost.
Freehold property includes land with a value of £4,357,100 on which no depreciation charge is made.
There were no capital commitments at the balance sheet date.

Page 9

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

6.


Debtors

2023
2022
£
£


Amounts owed by group undertakings
691,332
1,293,459

Other debtors
475,550
411,830

Prepayments and accrued income
8,984
-

1,175,866
1,705,289





7.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
902,539
550

Less: bank overdrafts
(46,231)
(40,878)

856,308
(40,328)


Page 10

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

8.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
46,231
40,878

Bank loans
170,921
171,311

Trade creditors
15,880
18,744

Amounts owed to group undertakings
813,334
802,791

Corporation tax
359,155
382,949

Other taxation and social security
159,130
47,176

Other creditors
601,871
531,896

Accruals and deferred income
28,460
31,641

2,194,982
2,027,386




2023
2022
£
£

Other taxation and social security

PAYE/NI control
400
1,282

VAT control
158,730
45,894

159,130
47,176


The following liabilities were secured:

2023
2022
£
£



Bank Overdrafts
46,231
40,878

Bank Loans
170,921
171,311

217,152
212,189

Details of security provided:

Bank loans and overdrafts are secured by legal charge on the Company's freehold property at High Road, Bell Common, CM16 4DG and debenture over all assets of the Company. Bank loans are repayable by installments and subject to variable rate of interest. 

Page 11

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

9.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
170,921
171,311


170,921
171,311

Amounts falling due 1-2 years

Bank loans
175,646
173,465


175,646
173,465

Amounts falling due 2-5 years

Bank loans
540,297
533,589


540,297
533,589

Amounts falling due after more than 5 years

Bank loans
1,265,333
1,444,754

1,265,333
1,444,754

2,152,197
2,323,119


Page 12

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

10.


Deferred taxation




2023
2022


£

£






At beginning of year
(396,687)
(394,835)


Charged to profit or loss
(7,482)
(1,852)



At end of year
(404,169)
(396,687)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(13,486)
(6,004)

Revaluation Gain
(390,683)
(390,683)

(404,169)
(396,687)


11.


Reserves

Revaluation reserve

Revaluation reserve represents gain on revaluation of freehold property. This is undistributable reserve.

Profit and loss account

Profit and loss account reserve represent accumulated retained profits or loss which is fully distributable reserve.


12.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,783 (2022: £1,676) . Contributions totaling £483 (2022: £27) were outstanding at reporting date.

Page 13

 
Somani Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 28 February 2023

13.


Related party transactions

The company has taken exemption under FRS 102, not to disclose any transactions entered into between group companies that are eliminated on consolidation. The ultimate parent company, Somani Holdings Limited, prepares group accounts. Copies of group accounts are available from Roebuck Inn, London Road, Stevenage, Hertfordshire, SG2 8DS.
During the year, the Company has received advances totaling £70,475 (2022: £195,000) from a Company under common control. Amount owed by the Company  at the year end was £592,842 (2022: £522,367) and is included in other creditors. These are unsecured interest free advances which are  repayable on demand.
During the year, the Company has provided advances of £20,673 (2022: £2,000) to the director. Amount owed by the director at the year end was £322,426 (2022: £301,753). These are interest free unsecured advances which are repayable on demand. 
Other debtors includes tax payable by the company on loan to participators of £105,047 (2022: £98,070).


14.


Controlling party

The Company is controlled by the directors. 


15.


Auditor's information

The auditor's report on the financial statements for the year ended 28 February 2023 was unqualified.

The audit report was signed on 9 November 2023 by Janak Raj Pokhrel (Senior statutory auditor) on behalf of Mantax Lynton.

 
Page 14