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Registered number: 06345932









KHANNA ENTERPRISES (HOLDINGS) LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2023

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
52,319,951
24,627,500

  
52,319,951
24,627,500

Current assets
  

Stocks
  
28,462
4,932

Debtors
 6 
465,356
1,633,099

Cash at bank and in hand
 7 
1,021,259
6,209,703

  
1,515,077
7,847,734

Creditors: amounts falling due within one year
 8 
(13,186,466)
(8,574,548)

Net current liabilities
  
 
 
(11,671,389)
 
 
(726,814)

Total assets less current liabilities
  
40,648,562
23,900,686

Creditors: amounts falling due after more than one year
 9 
(32,784,561)
(15,827,454)

Provisions for liabilities
  

Net assets excluding pension asset
  
7,864,001
8,073,232

Net assets
  
7,864,001
8,073,232


Capital and reserves
  

Called up share capital 
  
6
6

Profit and loss account
  
7,863,995
8,073,226

Equity attributable to owners of the parent Company
  
7,864,001
8,073,232

  
7,864,001
8,073,232

Page 1

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 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 consolidated statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

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




A Khanna
Director

Date: 16 October 2024

The notes on pages 5 to 15 form part of these financial statements.
Page 2

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
22,360
-

Investments
 5 
301
201

  
22,661
201

Current assets
  

Debtors
 6 
18,567,297
12,957,201

Cash at bank and in hand
 7 
195,069
767

  
18,762,366
12,957,968

Creditors: amounts falling due within one year
 8 
(8,768,445)
(7,407,419)

Net current assets
  
 
 
9,993,921
 
 
5,550,549

Total assets less current liabilities
  
10,016,582
5,550,750

Net assets excluding pension asset
  
10,016,582
5,550,750

Net assets
  
10,016,582
5,550,750


Capital and reserves
  

Called up share capital 
  
6
6

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

Profit for the year
  
4,465,832
64,811

Profit and loss account carried forward
  
10,016,576
5,550,744

  
10,016,582
5,550,750

Page 3

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
REGISTERED NUMBER: 06345932
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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

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

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

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




A Khanna
Director

Date: 16 October 2024

The notes on pages 5 to 15 form part of these financial statements.
Page 4

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

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

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The consolidated financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

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

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

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will be able to continue trading for the foreseeable future. The group has net assets of £7,864,001 (2022: £8,073,232) and net current liabilities of £11,671,389 (2022: £726,814) at the balance sheet date. Included within current liabilities are loans due to the Shareholder and companies under common control totalling £9,049,932 (2022: £7,709,549). The Shareholder has stated that he intends, without creating a contractual obligation, to provide such support as may be necessary to the group, and confirmed his commitment to provide funds to meet ongoing expenses for at least 12 months from the date of approval of the financial statements.
The director is therefore satisfied that the going concern basis is appropriate for the preparation of these financial statements.

Page 5

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

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

Rendering of services

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

 
2.5

Interest income

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

 
2.6

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.

 
2.7

Borrowing costs

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

Page 6

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Tangible fixed assets

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

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

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

Depreciation is provided on the following basis:

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

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

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

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 7

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Stocks

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

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

 
2.12

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.

 
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

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group 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.

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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 8

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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.


Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 9

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Employees

The average monthly number of employees, including the director, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
130
36
4
2


4.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
24,723,927
57,062
98,996
72,109
24,952,094


Additions
27,920,673
26,291
224,491
13,523
28,184,978



At 31 December 2023

52,644,600
83,353
323,487
85,632
53,137,072



Depreciation


At 1 January 2023 (as restated)
267,345
11,123
22,318
23,808
324,594


Charge for the year on owned assets
371,411
20,399
68,694
32,023
492,527



At 31 December 2023

638,756
31,522
91,012
55,831
817,121



Net book value



At 31 December 2023
52,005,844
51,831
232,475
29,801
52,319,951



At 31 December 2022 (as restated)
24,456,582
45,939
76,678
48,301
24,627,500

Page 10

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           4.Tangible fixed assets (continued)


Company






Fixtures and fittings

£

Cost or valuation


Additions
22,360



At 31 December 2023

22,360






At 31 December 2023

-



Net book value



At 31 December 2023
22,360



At 31 December 2022
-






Page 11

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
201


Additions
100



At 31 December 2023
301





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

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

During the year, the Group acquired interest in a direct subsidiary KE Hotels (Luton) Ltd.

Page 12

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Prepayments and accrued income
4,589
33,974
-
-

4,589
33,974
-
-

Due within one year

Amounts owed by group undertakings
-
-
18,483,897
12,948,802

Other debtors
306,736
1,513,342
8,400
8,399

Prepayments and accrued income
154,031
85,783
75,000
-

465,356
1,633,099
18,567,297
12,957,201



7.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,021,259
6,209,703
195,069
767

1,021,259
6,209,703
195,069
767



8.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
541,126
-
-
-

Trade creditors
968,744
200,934
6,859
-

Other taxation and social security
360,672
192,873
6,654
4,455

Other creditors
11,055,718
7,855,082
8,724,932
7,384,549

Accruals and deferred income
260,206
325,659
30,000
18,415

13,186,466
8,574,548
8,768,445
7,407,419


The bank loans are secured by a fixed and floating charge over the assets of the Group.

Page 13

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
32,340,992
15,420,121

Accruals and deferred income
443,569
407,333

32,784,561
15,827,454


The bank loans are secured by a fixed and floating charge over the assets of the Group.


10.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£


Amounts falling due within one year
541,126
-


Amounts falling due 1-2 years
764,251
539,987


Amounts falling due 2-5 years
22,075,644
14,880,134


Amounts falling due after more than 5 years
9,501,097
-

32,882,118
15,420,121


The bank loans are secured by a fixed and floating charge over the assets of the Group.


11.


Prior year adjustment

The prior year adjustment of £267,525 relates to depreciation of a freehold property. The net effect of the adjustment increased the retained earnings to £8,073,226.


12.


Financial commitments, guarantees and contingent liabilities

The group has provided security over its assets on borrowings by related entities, which totalled £53.5m
at the year end.






Page 14

 
KHANNA ENTERPRISES (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administrered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £35,729 (2022 - £14,554). Contributions totalling £3,563 (2022 - 2,429) were payable to the fund at the balance sheet date.


14.


Related party transactions

At the balance sheet date, the group and company owed £8,005,990 (2022 - £6,665,607) to companies under common control.
At the balance sheet date, the group and the company owed the director £1,043,942 (2022 - £1,043,942) and £718,942 (2022 - £718,942) respectively. A loan of £999,900 was made by the director to the group and accrues interest at 2.6%. All other loans are interest free and repayable on demand.


15.


Post balance sheet events

In February 2024, the Group dissolved KE Hotels (Bath) Ltd via a voluntary strike-off.


16.


Controlling party

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


17.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.

The audit report was signed on 16 October 2024 by Engin Zekia BSc FCA (Senior statutory auditor) on behalf of Adler Shine LLP.

 
Page 15