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REGISTERED NUMBER: 07285998 (England and Wales)




















Unaudited Financial Statements

for the Year Ended 30 June 2023

for

Zahawi & Zahawi Ltd

Zahawi & Zahawi Ltd (Registered number: 07285998)






Contents of the Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Zahawi & Zahawi Ltd

Company Information
for the Year Ended 30 June 2023







DIRECTORS: Ms L F J Saib
A Shanshal
J Shanshal





REGISTERED OFFICE: 36 Wilton Crescent
London
SW1X 8RX





REGISTERED NUMBER: 07285998 (England and Wales)

Zahawi & Zahawi Ltd (Registered number: 07285998)

Balance Sheet
30 June 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 285,554 333,800
Investment property 5 64,728,738 64,728,738
65,014,292 65,062,538

CURRENT ASSETS
Debtors 6 1,005,121 569,092
Cash at bank 501,654 242,584
1,506,775 811,676
CREDITORS
Amounts falling due within one year 7 3,424,035 3,099,289
NET CURRENT LIABILITIES (1,917,260 ) (2,287,613 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

63,097,032

62,774,925

CREDITORS
Amounts falling due after more than one
year

8

(57,618,277

)

(57,311,719

)

PROVISIONS FOR LIABILITIES (1,105,177 ) (1,010,882 )
NET ASSETS 4,373,578 4,452,324

CAPITAL AND RESERVES
Called up share capital 200 200
Other reserves (2,195,520 ) (710,795 )
Retained earnings 6,568,898 5,162,919
4,373,578 4,452,324

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Zahawi & Zahawi Ltd (Registered number: 07285998)

Balance Sheet - continued
30 June 2023


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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2024 and were signed on its behalf by:





Ms L F J Saib - Director


Zahawi & Zahawi Ltd (Registered number: 07285998)

Notes to the Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

Zahawi & Zahawi Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rental income from investment properties is recognised when the company is entitled to receive the income and it is probable that the income will be received.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on straight line basis and 5% on a straight line basis
Plant and machinery - 15% on reducing balance and 10% on straight line basis
Fixtures and fittings - 20% on straight line basis
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on straight line basis

Repairs and maintenance costs are expensed as incurred.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Zahawi & Zahawi Ltd (Registered number: 07285998)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Derivatives
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate.

The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the 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.

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.

Zahawi & Zahawi Ltd (Registered number: 07285998)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash flow hedges
As defined by FRS 102, cash flow hedges are initially recognised at fair value at the date the derivative contracts are entered into, and subsequently remeasured at fair value. Changes in the fair value of derivatives that are designated and qualify as effective cash flow hedges are recognised directly through other comprehensive income as a movement in the hedging and translation reserve. Any ineffective portion of all derivatives is recognised in the income statement. Changes in the fair value of derivatives that are not in a designated hedging relationship under FRS 102 are recorded directly in the income statement. These derivatives are carried at fair value on the balance sheet.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2022 - 9 ) .

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 July 2022
and 30 June 2023 253,045 69,703 53,713
DEPRECIATION
At 1 July 2022 124,152 27,625 51,076
Charge for year 12,280 5,511 2,482
At 30 June 2023 136,432 33,136 53,558
NET BOOK VALUE
At 30 June 2023 116,613 36,567 155
At 30 June 2022 128,893 42,078 2,637

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 July 2022
and 30 June 2023 315,292 11,676 703,429
DEPRECIATION
At 1 July 2022 155,100 11,676 369,629
Charge for year 27,973 - 48,246
At 30 June 2023 183,073 11,676 417,875
NET BOOK VALUE
At 30 June 2023 132,219 - 285,554
At 30 June 2022 160,192 - 333,800

Zahawi & Zahawi Ltd (Registered number: 07285998)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

5. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 July 2022
and 30 June 2023 64,728,738
NET BOOK VALUE
At 30 June 2023 64,728,738
At 30 June 2022 64,728,738

The director believes that cost of properties acquired within the six years ended 30 June 2023 provides a fair reflection of valuation at the balance sheet date.

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 136,143 199,970
Other debtors 710 40,710
Interest rate cap 764,061 220,458
VAT - 4,466
Prepayments 104,207 103,488
1,005,121 569,092

The company has entered into an interest rate cap contract in respect of certain bank borrowings. This has been accounted for as a financial instrument, stated at its fair value as at the balance sheet date. Changes in the fair value of derivatives that are designated and qualify as effective cash flow hedges are recognised directly through other comprehensive income as a movement in the hedging and translation reserve.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 1,322,000 1,322,000
Trade creditors 108,613 133,845
Tax 315,863 306,228
Social security and other taxes 14,217 8,204
VAT 77,251 -
Other creditors 743,214 646,260
Directors' current accounts 220,867 154,426
Accruals & deferred income 622,010 528,326
3,424,035 3,099,289

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans - 1-2 years 1,322,000 1,322,000
Bank loans - 2-5 years 24,387,250 24,762,250
Other creditors 31,909,027 31,227,469
57,618,277 57,311,719

Zahawi & Zahawi Ltd (Registered number: 07285998)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 27,031,250 27,406,250

Bank loans and mortgages are secured on the properties to which they relate.

Hire purchase liabilities are secured on the asset to which they relate.

10. ULTIMATE CONTROLLING PARTY

The controlling party is Ms L F J Saib.