Company Registration No. 12222325 (England and Wales)
JASTAR CAPITAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
JASTAR CAPITAL LIMITED
COMPANY INFORMATION
Directors
Mr R S Matharu
Mr J S Matharu
Mr T S Matharu
Miss S Matharu
Company number
12222325
Registered office
72-75 Red Lion Street
London
WC1R 4NA
Auditor
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
JASTAR CAPITAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
JASTAR CAPITAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
The company is an investor in hotels, real estate investments and developments and other investments. Its principal activities together with that of its subsidiaries in year ended 31 March 2023 have included the ownership and operation of The Elvetham Hotel and Winchester Hotel & Spa, both in Hampshire.
During the financial year ended 31 March 2023, the company acquired Native Bankside, a 75 key aparthotel in central London, completing the acquisition on the 13 January 2023. The property is subject to a lease, which is contracted to convert into a management contract after the end of the financial year.
The company acquired 100% of the share capital of Custom House City Limited on 23 February 2023 and the subsidiary undertaking subsequently completed the acquisition of the historic Custom House building on the Thames in the City of London.
Principal risks and uncertainties
Liquidity risk
This relates to the risk that the company is unable to fund its requirements because of insufficient cash at bank and bank facilities. The company monitors its cash balances regularly and ensures sufficient funds are always available.
Inflation
Along with others in the sector since the year end the company and its subsidiaries are experiencing significant inflationary pressures arising from the current Cost of Living crisis affecting the UK which has arisen from the post COVID-19 recovery effects alongside the war in Ukraine.
Labour supply
The hotel and hospitality industry, alongside other sectors, is still experiencing challenges in retaining and recruiting staff. The company and its subsidiaries are exploring all available avenues to recruit more staff alongside active measures to retain existing staff where practical.
Development and performance
The company's loss on ordinary activities after taxation was £1,999,681 (2022: £1,192,394). The company's net current liabilities were £51,662,086 (2022: £6,173,557) and net total liabilities were £3,829,357 (2022: £1,829,676) at the balance sheet date.
Key performance indicators
The company takes a long term approach to it's investments, with success coming from the careful selection of investments, teams and driving their long term performance. As such short term KPI's are not indicative of success which comes from the building of long term value through investment in subsidiaries to build long term value.
Mr R S Matharu
Director
27 August 2024
JASTAR CAPITAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company is that of holding investments.
The principal activities of the subsidiary undertakings are that of owning and operating hotels and property development.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R S Matharu
Mr J S Matharu
Mr T S Matharu
Miss S Matharu
Future developments
The company is seeking to purchase further hotels whilst reviewing other investment opportunities to expand the portfolio in the future. After the year end the company has expanded its investments in bloodstock and acquired 51% of the ordinary share capital of Sherstar JV Limited. The subsidiary undertaking, Custom House (City) Limited, subsequently completed the acquisition of the historic Custom House building on the Thames in the City of London.
Auditor
John Cumming Ross Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JASTAR CAPITAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr R S Matharu
Director
27 August 2024
JASTAR CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JASTAR CAPITAL LIMITED
- 4 -
Opinion
We have audited the financial statements of Jastar Capital Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty relating to going concern
We draw attention to note 1.2 in the financial statements, which indicates that as at 31 March 2023 the Company had net current and net total liabilities. As stated in note 1.2, these events or conditions, along with other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
JASTAR CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JASTAR CAPITAL LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions were held with management with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The outcomes of these discussions and enquiries were shared with the engagement team. During the engagement briefing it was considered how and where fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company law and Tax and Pensions legislation.
Those laws and regulations considered to have a direct effect on the day to day operations of the company include employment law and General Data Protection Regulation (GDPR).
It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the year end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
JASTAR CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JASTAR CAPITAL LIMITED
- 6 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Balvantkumar B Patel (Senior Statutory Auditor)
For and on behalf of John Cumming Ross Limited
Chartered Certified Accountants and Statutory Auditors
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
29 August 2024
JASTAR CAPITAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
428,698
-
Administrative expenses
(3,102,779)
(2,240,808)
Other operating income
543,867
913,000
Operating loss
4
(2,130,214)
(1,327,808)
Interest receivable and similar income
7
328,609
133,164
Amounts written off investments
8
(213,033)
-
Loss before taxation
(2,014,638)
(1,194,644)
Tax on loss
9
14,957
2,250
Loss for the financial year
(1,999,681)
(1,192,394)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no movement in the statement of comprehensive income during the period.
JASTAR CAPITAL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,784
2,055
Tangible assets
12
43,364,903
110,589
Investments
13
4,466,042
4,246,194
47,832,729
4,358,838
Current assets
Debtors
15
34,443,362
25,683,497
Cash at bank and in hand
3,416,540
1,720,723
37,859,902
27,404,220
Creditors: amounts falling due within one year
16
(89,521,988)
(33,577,777)
Net current liabilities
(51,662,086)
(6,173,557)
Total assets less current liabilities
(3,829,357)
(1,814,719)
Provisions for liabilities
Deferred tax liability
18
14,957
-
(14,957)
Net liabilities
(3,829,357)
(1,829,676)
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
(3,829,358)
(1,829,677)
Total equity
(3,829,357)
(1,829,676)
The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
Mr R S Matharu
Director
Company Registration No. 12222325
JASTAR CAPITAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
1
(637,283)
(637,282)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(1,192,394)
(1,192,394)
Balance at 31 March 2022
1
(1,829,677)
(1,829,676)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(1,999,681)
(1,999,681)
Balance at 31 March 2023
1
(3,829,358)
(3,829,357)
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
1
Accounting policies
Company information
Jastar Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is 72-75 Red Lion Street, London, WC1R 4NA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Jastar Capital Limited is a wholly owned subsidiary of New Gem Holdings Limited and the results of Jastar Capital Limited are included in the consolidated financial statements of New Gem Holdings Limited which are available from Lion House, 72-75 Red Lion Street London WC1R 4NA.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company incurred a loss for the year ended 31 March 2023 and had net liabilities at that date. The company is a wholly owned subsidiary of New Gem Holdings Limited. New Gem Holdings Limited has agreed to provide ongoing financial support to the company for at least twelve months from the date of signing the financial statements. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements for the year ended 31 March 2023.
1.3
Turnover
Turnover represents rental income, and is recognised in the period to which it relates.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks
10% per annum
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
1% per annum straight line
Fixtures and fittings
20-25% per annum straight line
Motor vehicles
25% per annum straight line
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Fixed asset investments are initially measured at cost and subsequently measures at cost less any accumulated impairment losses.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.9
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 asset’s 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Rental income
428,698
-
2023
2022
£
£
Other significant revenue
Interest income
328,609
133,164
Grants received
1,918
44,391
3
Government grants
The company received Covid-19 Government support in the financial period of £nil (2022:£43,518) related to the Coronavirus Job Retention Scheme. The company also received £1,918 (2022:£875) in relation to the Government plug in grant, a scheme designed to promote the uptake of electrical vehicles in the UK.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Research and development costs
1,647
-
Government grants
(1,918)
(44,391)
Fees payable to the company's auditor for the audit of the company's financial statements
7,875
8,625
Depreciation of owned tangible fixed assets
130,100
35,331
Loss on disposal of tangible fixed assets
141,065
-
Amortisation of intangible assets
271
271
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
10
8
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
452,935
324,251
Social security costs
55,814
37,671
Pension costs
5,825
3,009
514,574
364,931
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
218,065
171,477
Company pension contributions to defined contribution schemes
2,642
1,651
220,707
173,128
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
116,664
-
Company pension contributions to defined contribution schemes
1,321
-
As total directors' remuneration was less than £200,000 in the previous year, no disclosure is provided for that year.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
81,981
1,961
Interest receivable from group companies
246,628
130,633
Other interest income
570
Total income
328,609
133,164
8
Amounts written off investments
2023
2022
£
£
Other gains and losses
(213,033)
-
Fixed asset investments have been impaired by £213,033 (2022: £nil) during the year.
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(14,957)
(2,250)
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 17 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(2,014,638)
(1,194,644)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(382,781)
(226,982)
Tax effect of expenses that are not deductible in determining taxable profit
215,580
47,363
Unutilised tax losses carried forward
267,087
173,857
Permanent capital allowances in excess of depreciation
(99,886)
5,762
Deferred tax charge
(14,957)
(2,250)
Taxation credit for the year
(14,957)
(2,250)
10
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2023
2022
Notes
£
£
In respect of:
Fixed asset investments
13
213,033
-
Recognised in:
Amounts written off investments
213,033
-
The impairment losses in respect of financial assets are recognised in amounts written off investments in the profit and loss account.
Unlisted investments have been impaired by £91,274 (2022: £nil) in the year.
Other fixed asset investments have been impaired by £121,759 (2022: £nil) in the year.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
11
Intangible fixed assets
Trademarks
£
Cost
At 1 April 2022 and 31 March 2023
2,710
Amortisation and impairment
At 1 April 2022
655
Amortisation charged for the year
271
At 31 March 2023
926
Carrying amount
At 31 March 2023
1,784
At 31 March 2022
2,055
12
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
8,423
160,240
168,663
Additions
42,919,556
483,572
39,500
43,442,628
Disposals
(106,240)
(106,240)
At 31 March 2023
42,919,556
491,995
93,500
43,505,051
Depreciation and impairment
At 1 April 2022
3,298
54,776
58,074
Depreciation charged in the year
85,839
26,646
17,615
130,100
Eliminated in respect of disposals
(48,026)
(48,026)
At 31 March 2023
85,839
29,944
24,365
140,148
Carrying amount
At 31 March 2023
42,833,717
462,051
69,135
43,364,903
At 31 March 2022
5,125
105,464
110,589
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
3,528,902
3,528,901
Unlisted investments
91,274
Other investments
937,140
626,019
4,466,042
4,246,194
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Other
Total
£
£
£
£
Cost or valuation
At 1 April 2022
3,528,901
91,274
626,019
4,246,194
Additions
1
-
623,140
623,141
Disposals
-
-
(190,260)
(190,260)
At 31 March 2023
3,528,902
91,274
1,058,899
4,679,075
Impairment
At 1 April 2022
-
-
-
-
Impairment losses
-
91,274
121,759
213,033
At 31 March 2023
-
91,274
121,759
213,033
Carrying amount
At 31 March 2023
3,528,902
-
937,140
4,466,042
At 31 March 2022
3,528,901
91,274
626,019
4,246,194
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Richmond & Hampshire Limited
The Elvetham Hotel Fleet Road, Hartley Witney, Hook, RG27 8AS
Ordinary shares
100.00
-
Elvetham Hall (Property) Limited
The Elvetham Hotel Fleet Road, Hartley Witney, Hook, RG27 8AS
Ordinary shares
-
100.00
Winchester Hotel and Spa Limited
Winchester Hotel & Spa, Worthy Lane, Winchester SO23 7AB
Ordinary shares
100.00
-
Custom House (City) Limited
Lion House, 72-75 Red Lion Street, London WC1R 4NA
Ordinary shares
100.00
-
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
512,265
Corporation tax recoverable
66,716
17,354
Amounts owed by group undertakings
32,120,313
23,706,942
Other debtors
673,498
634,758
Prepayments and accrued income
1,070,570
1,324,443
34,443,362
25,683,497
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Debtors
(Continued)
- 20 -
£26,390,262 (2022: £17,976,891) owed by group undertakings is interest free and repayable on demand.
£5,730,051 (2022: £5,730,051) owed by group undertakings is repayable 30 days from the date demanded and interest is receivable at 2% above Bank of Scotland base rate.
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
73,675
32,891
Amounts owed to group undertakings
89,318,553
33,493,100
Corporation tax
66,716
17,354
Other taxation and social security
30,005
15,430
Other creditors
17,239
3,602
Accruals and deferred income
15,800
15,400
89,521,988
33,577,777
Amounts owed to group undertakings are interest free and repayable on demand.
17
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
18
14,957
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
-
14,957
2023
Movements in the year:
£
Liability at 1 April 2022
14,957
Credit to profit or loss
(14,957)
Liability at 31 March 2023
-
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Deferred taxation
(Continued)
- 21 -
Deferred tax asset of £2,307,177 in respect of tax losses and timing differences is not recognised as the recoverability of the asset is relatively uncertain based on management expectations.
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary equity shares of £1 each
1
1
1
1
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,825
3,009
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Events after the reporting date
On 4 May 2024, the Company acquired 51% of the ordinary share capital of Sherstar JV Limited, a company incorporated in England and Wales.
Subsequent to the balance sheet date the Company has invested £1,146,322 in race horses and bloodstock.
22
Related party transactions
At the balance sheet date the amount due from Resolutum Developments Limited, a company under the control of the director Mr J S Matharu was £nil (2022 - £365,000). During the year the company paid £283,333 (2022: £283,333) for consultancy work carried out and made a provision for bad debts of £365,000 for an amount due from Resolutum Developments Limited.
During the year the amount paid for medical expenses of the directors amounted to £1,401 (2022: £3,145).
23
Ultimate controlling party
The company's parent undertaking is New Gem Holdings Limited, a company incorporated in England and Wales whose registered office is Lion House, 72-75 Red Lion Street, London WC1R 4GB. The smallest and largest group in which the results of the company are consolidated is that headed by New Gem Holdings Limited.
JASTAR CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
24
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Advance to director
2.50
53,397
53,240
106,637
Advance to director
2.50
-
84,323
84,323
Advance to director
2.50
-
2,764
2,764
Advance to director
2.50
-
5,932
5,932
53,397
146,259
199,656
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2024.200Mr R S MatharuMr J S MatharuMr T S MatharuMiss S Matharufalsefalse122223252022-04-012023-03-3112222325bus:Director12022-04-012023-03-3112222325bus:Director22022-04-012023-03-3112222325bus:Director32022-04-012023-03-3112222325bus:Director42022-04-012023-03-3112222325bus:RegisteredOffice2022-04-012023-03-31122223252023-03-31122223252021-04-012022-03-3112222325core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3112222325core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3112222325core:OtherResidualIntangibleAssets2023-03-3112222325core:OtherResidualIntangibleAssets2022-03-3112222325core:PatentsTrademarksLicencesConcessionsSimilar2023-03-3112222325core:PatentsTrademarksLicencesConcessionsSimilar2022-03-31122223252022-03-3112222325core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3112222325core:FurnitureFittings2023-03-3112222325core:MotorVehicles2023-03-3112222325core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3112222325core:FurnitureFittings2022-03-3112222325core:MotorVehicles2022-03-3112222325core:Non-currentFinancialInstruments2023-03-3112222325core:Non-currentFinancialInstruments2022-03-3112222325core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3112222325core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3112222325core:CurrentFinancialInstruments2023-03-3112222325core:CurrentFinancialInstruments2022-03-3112222325core:ShareCapital2023-03-3112222325core:ShareCapital2022-03-3112222325core:RetainedEarningsAccumulatedLosses2023-03-3112222325core:RetainedEarningsAccumulatedLosses2022-03-3112222325core:ShareCapital2021-03-3112222325core:RetainedEarningsAccumulatedLosses2021-03-31122223252021-03-3112222325core:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-3112222325core:PatentsTrademarksLicencesConcessionsSimilar2022-04-012023-03-3112222325core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3112222325core:FurnitureFittings2022-04-012023-03-3112222325core:MotorVehicles2022-04-012023-03-3112222325core:UKTax2022-04-012023-03-3112222325core:UKTax2021-04-012022-03-311222232512022-04-012023-03-311222232512021-04-012022-03-3112222325core:PatentsTrademarksLicencesConcessionsSimilar2022-03-3112222325core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3112222325core:FurnitureFittings2022-03-3112222325core:MotorVehicles2022-03-31122223252022-03-3112222325core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-03-3112222325core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-03-3112222325bus:PrivateLimitedCompanyLtd2022-04-012023-03-3112222325bus:FRS1022022-04-012023-03-3112222325bus:Audited2022-04-012023-03-3112222325bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP