Company registration number 09154166 (England and Wales)
CLARGES MAYFAIR PROPERTIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
CLARGES MAYFAIR PROPERTIES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
CLARGES MAYFAIR PROPERTIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
118,760
145,840
Investment property
5
9,200,000
9,200,000
9,318,760
9,345,840
Current assets
Debtors
6
45,332
98,414
Cash at bank and in hand
345,874
301,979
391,206
400,393
Creditors: amounts falling due within one year
7
(4,004,820)
(4,708,881)
Net current liabilities
(3,613,614)
(4,308,488)
Total assets less current liabilities
5,705,146
5,037,352
Creditors: amounts falling due after more than one year
8
(4,800,000)
(4,800,000)
Provisions for liabilities
(86,002)
(86,002)
Net assets
819,144
151,350
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
819,044
151,250
Total equity
819,144
151,350

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 20 August 2024 and are signed on its behalf by:
Mr S K Gulhati
Director
Company registration number 09154166 (England and Wales)
CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Clarges Mayfair Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7-12 Half Moon Street, Mayfair, London, W1J 7BH.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has net assets of £819,144 (2022: £151,350) as at 31 December 2023. The company's parent undertaking, Veladail Hotels Limited, has pledged its continuing support to the company. As at the balance sheet date, the company owed its parent £3,910,000 (2022: £4,050,000).

 

In July 2020, the company entered into a tenancy agreement attached to which was an option held by the tenant to buy the company’s investment property. The option needed to be extended annually during the period up to 31 January 2025. At the same time, in July 2020, the parent company, Veladail Hotels Limited, entered into an option agreement with the tenant to buy the shares in the company during a specific period up to 31 January 2025.

 

During the year to 31 December 2023, the tenant did not extend their option to 31 January 2025 and vacated the property at the end of the tenancy in 2024. As a result, the option provided by the company to the tenant lapsed on 30 November 2023. The aggregate value of option payments received has been released to the profit and loss account during the year to 31 December 2023.

 

The property has been re-let on a commercial basis.

 

Management continue to consider the options available to them. One of these options is to retain ownership of the property at the end of the current tenancy and continue to generate rental income by leasing it to tenants. This would continue to provide a source of revenue for the company while maintaining the property as an income-generating asset. Having regard to continued rental income, together with the ongoing support pledged by the parent company, the directors are of the opinion that the company has the ability to continue to meet its obligations as they fall due. As a result, the directors consider it appropriate to prepare the financial statements on the going concern basis.

1.3
Turnover

Turnover represents rents receivable from lettings of properties.

1.4
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:

Fixtures, fittings & equipment
10% straight line
CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

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.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss. .

 

The company recognises investment property when the risks and rewards of ownership remain with the company.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

Classification of financial liabilities

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

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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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.

CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Property valuation is a key accounting estimate, as it involves the determination of the fair value or carrying value of a property for financial reporting purposes. Property value represents a significant portion of a company's assets and has a significant impact on the financial statements. The value assigned to a property can affect key financial metrics such as the company's net worth, equity, and ratios. Property valuation is a complex process that involves numerous factors, such as location, condition, rental income, market trends, and legal considerations. These factors require professional expertise and judgment to arrive at a reasonable estimate of the property's value. Furthermore, the property value can change over time due to various factors such as market fluctuations, economic conditions, and property-specific factors, which introduce additional estimation uncertainties and require the use of professional judgment.

 

The investment property has been stated at a directors' valuation of £9,200,000 (2022: £9,200,000) as at 31 December 2023.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
270,796
Depreciation and impairment
At 1 January 2023
124,956
Depreciation charged in the year
27,080
At 31 December 2023
152,036
Carrying amount
At 31 December 2023
118,760
At 31 December 2022
145,840
CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
9,200,000

In July 2020, the company entered into a tenancy agreement attached to which was an option held by the tenant to buy the company’s investment property. The option needed be extended annually during the period up to 31 January 2025 and was divided into five option periods. The contractual amount of the property was £10,300,000, plus £200,000 for chattels. In order to maintain the option throughout the period to 31 January 2025, the tenant was required to pay a purchase deposit before the beginning of each option period.

 

During the year to 31 December 2023, the tenant did not extend their option to 31 January 2025 and vacated the property at the end of the tenancy in 2024. The aggregate value of option payments received have been released to the profit and loss account during the year to 31 December 2023 on the basis the options had lapsed by that date. Total purchase options received and released to the profit and loss account amounted to £750,000. Payments received to 31 December 2022, amounting to £550,000 were presented as part of other creditors.

 

The property has been re-let on a commercial basis.

 

In accordance with the terms of the tenancy agreement, the property continues to be recognised as an investment property and presented at its fair value, as the risks and rewards of ownership remain with the company.

 

As at 31 December 2023, the investment property has been stated at the directors' estimate of its fair value at that date. To arrive at this value, the directors considered numerous factors, such as location, condition, rental income, market trends, legal considerations, similar transactions on the active market at the year-end and the current tenancy agreement. The directors also considered post-year-end events that could impact property valuation and provide new information on circumstances that affect the fair value of the property. As such the directors have valued the property as at 31 December 2023 at £9,200,000 (2022: £9,200,000).

 

On a historical cost basis the investment property would have been included at an original cost of £8,855,990 (2022: £8,855,990) and aggregate depreciation of £Nil (2022: Nil).

 

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
40,600
53,946
Prepayments and accrued income
4,732
44,468
45,332
98,414
CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
3,910,000
4,050,000
Other creditors
40,500
603,846
Accruals and deferred income
54,320
55,035
4,004,820
4,708,881

Other creditors include the aggregate option payments received by the company in accordance with the tenancy and option agreements referred to in notes 1.2 and 5 of these financial statements. During the year to 31 December 2023, the aggregate option payments received to 31 December 2022, amounting to £550,000, were released to the profit and loss account, along with the £200,000 received in respect of the option period ended 31 January 2024. As at 31 December 2023, £nil (2022: £550,000) is included as part of other creditors in respect of the lapsed purchase option.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
4,800,000
4,800,000
9
Loans and overdrafts
2023
2022
£
£
Bank loans
4,800,000
4,800,000
Payable after one year
4,800,000
4,800,000

Bank loans are secured by a fixed and floating charge over the company's assets and by a corporate guarantee given by Veladail Hotels Limited. The facility is available to the company until 30 November 2027.

10
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

CLARGES MAYFAIR PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Audit report information
(Continued)
- 8 -
Senior Statutory Auditor:
David Truscott
Statutory Auditors:
PK Audit LLP
12
Parent company

The immediate parent company is Veladail Hotels Limited, a company registered in England and Wales. The ultimate holding company is Arrow Trading & Investments Est 1920, a company incorporated in Vaduz.

 

Veladail Hotels Limited prepares group financial statements and copies can be obtained from 7-12 Half Moon Street, London W1J 7BH.

2023-12-312023-01-01false21 August 2024CCH SoftwareCCH Accounts Production 2024.200The principal activity of the company is that of property investment.
This audit opinion is unqualifiedMr S K GulhatiMr S GulhatiMrs S Gulhatifalsefalse
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