Company Registration No. 11316045 (England and Wales)
DHOLAK PARTNERSHIP HOMES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
DHOLAK PARTNERSHIP HOMES LIMITED
COMPANY INFORMATION
Directors
Sunil Pankhania
Vraj Pankhania
Kamal Pankhania
Lorraine Gaye Shears
Martin Geraghty
(Appointed 26 September 2024)
Company number
11316045
Registered office
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Auditor
HW Fisher Audit
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Business address
7 Churchill Court
58 Station Road
Harrow
Middlesex
HA2 7SA
United Kingdom
Bankers
Coutts & Co.
440 Strand
London
WC2R 0QS
United kingdom
DHOLAK PARTNERSHIP HOMES LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 16
DHOLAK PARTNERSHIP HOMES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company is that of a registered provider of for-profit social housing (registration number 5081).
The directors' confirm compliance with the Governance and Financial Viability Standard during the course of the year and up to the signing of the accounts.
Value for Money metrics:
| |
Metric 2a: New Supply (Social Housing Units) % | |
Metric 2a: New Supply (Non-Social Housing Units) % | |
| |
Metric 4: EBITDA MRI Interest Cover % | |
Metric 5: Headline Social Housing Cost £ | |
Metric 6a: Operating Margin (social housing lettings) % | |
Metric 6b: Operating Margin (Overall) % | |
Metric 7: Return on Capital Employed % | |
| |
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Sunil Pankhania
Vraj Pankhania
Kamal Pankhania
Ian Robert Beckett
(Resigned 31 March 2023)
Lorraine Gaye Shears
Martin Geraghty
(Appointed 26 September 2024)
Auditor
In accordance with the company's articles, a resolution proposing that HW Fisher Audit be reappointed as auditor of the company will be put at a General Meeting.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Kamal Pankhania
Director
31 October 2024
DHOLAK PARTNERSHIP HOMES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
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.
DHOLAK PARTNERSHIP HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DHOLAK PARTNERSHIP HOMES LIMITED
- 3 -
Opinion
We have audited the financial statements of Dholak Partnership Homes Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 January 2024 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 the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
DHOLAK PARTNERSHIP HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DHOLAK PARTNERSHIP HOMES LIMITED
- 4 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 or the Housing and Regeneration Act 2008 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was an known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, the Housing SORP, The Accounting Direction for private registered providers of social housing and Health and Safety.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored out risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
DHOLAK PARTNERSHIP HOMES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DHOLAK PARTNERSHIP HOMES LIMITED
- 5 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key revenue lines, in particular cut-off, for evidence of management bias.
Performing a verification of the existence of key assets.
Obtaining third-party confirmation of material bank and loan balances.
Documenting and verifying all significant related party balances and transactions.
Reviewing documentation such as the company board minutes for discussions of irregularities including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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.
Andrew Rich (Senior Statutory Auditor)
For and on behalf of HW Fisher Audit
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
31 October 2024
DHOLAK PARTNERSHIP HOMES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
232,253
230,476
Administrative expenses
(115,707)
(105,974)
Operating profit
116,546
124,502
Interest payable and similar expenses
8
(121,823)
(93,127)
(Loss)/profit before taxation
(5,277)
31,375
Tax on (loss)/profit
(Loss)/profit for the financial year
(5,277)
31,375
DHOLAK PARTNERSHIP HOMES LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,520,141
3,548,857
Current assets
Debtors
10
21,712
37,022
Cash at bank and in hand
20
618
21,732
37,640
Creditors: amounts falling due within one year
11
(429,004)
(423,351)
Net current liabilities
(407,272)
(385,711)
Total assets less current liabilities
3,112,869
3,163,146
Creditors: amounts falling due after more than one year
12
(2,066,615)
(2,111,615)
Net assets
1,046,254
1,051,531
Capital and reserves
Called up share capital
13
1,357,072
1,357,072
Profit and loss reserves
(310,818)
(305,541)
Total equity
1,046,254
1,051,531
These financial statements have been prepared 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 31 October 2024 and are signed on its behalf by:
Kamal Pankhania
Director
Company Registration No. 11316045
DHOLAK PARTNERSHIP HOMES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
1,357,072
(336,916)
1,020,156
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
31,375
31,375
Balance at 31 January 2023
1,357,072
(305,541)
1,051,531
Year ended 31 January 2024:
Loss and total comprehensive income for the year
-
(5,277)
(5,277)
Balance at 31 January 2024
1,357,072
(310,818)
1,046,254
DHOLAK PARTNERSHIP HOMES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
16
166,225
115,815
Interest paid
(121,823)
(93,127)
Net cash inflow from operating activities
44,402
22,688
Financing activities
Repayment of bank loans
(45,000)
(30,300)
Net cash used in financing activities
(45,000)
(30,300)
Net decrease in cash and cash equivalents
(598)
(7,612)
Cash and cash equivalents at beginning of year
618
8,230
Cash and cash equivalents at end of year
20
618
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
1
Accounting policies
Company information
Dholak Partnership Homes Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
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 and the Statement of Recommended Practice for registered housing providers: Housing SORP 2018 and the Accounting Direction for Private Registered Providers for Social Housing 2022. 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. The principal accounting policies adopted are set out below.
1.2
Going concern
Thetrue company is supported by a bank loan and loan from the parent company, who confirmed that such support will be continued in the future. Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. This comprises rent receivable from social housing units.
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:
Leasehold property
Over term of lease
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
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.
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 11 -
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.
1.6
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.
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 and loans from companies under control 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.
1.7
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.
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.9
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Categorisation of housing properties
Leasehold property is let out to specific tenants (key workers) at below market rent, therefore in accordance with the Housing SORP (2018) the directors have concluded the property should be categorised as fixed assets rather than investment property.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rent receivable from social housing lettings
232,253
230,476
4
Social housing activity
All of the company's income and expenditure relates to its social housing activities, therefore the operating profit and net profit arising in the year arises solely from social housing activities.
The company owns 18 leasehold residential units, which were let to key workers at an affordable rent during the year (2023: 18 units).
Westway Housing Association Limited, a registered provider of social housing, was responsible for the day-to-day running of all 18 of the leasehold units during the prior and current year.
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
32,976
22,500
Audit of the financial statements of the company's subsidiaries
849
-
33,825
22,500
For other services
All other non-audit services
362
Audit services include fees for the preparation of the statutory accounts and corporation tax computation and return.
Non-audit services relate to company-secretarial fees.
The figures disclosed are stated net of VAT.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
1
2
7
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
2,333
4,633
Directors' remuneration relates to sums paid to non-executive Board members.
The salary received by the highest paid Director was £2,333.
8
Interest payable and similar expenses
2024
2023
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
11,538
11,539
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
9
Tangible fixed assets
Leasehold property
£
Cost
At 1 February 2023 and 31 January 2024
3,589,538
Depreciation and impairment
At 1 February 2023
40,681
Depreciation charged in the year
28,716
At 31 January 2024
69,397
Carrying amount
At 31 January 2024
3,520,141
At 31 January 2023
3,548,857
The leasehold property is classified as fixed assets rather than investment property, in accordance with the Housing SORP.
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,914
Prepayments and accrued income
21,712
33,108
21,712
37,022
Included within prepayments and accrued income is £nil (2023: £12,552) of social housing rent arrears.
11
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
45,000
45,000
Trade creditors
48,616
23,264
Amounts owed to companies under common control
253,417
307,594
Taxation and social security
466
Other creditors
5,600
5,600
Accruals and deferred income
75,905
41,893
429,004
423,351
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
1,489,654
1,534,654
Other borrowings
576,961
576,961
2,066,615
2,111,615
The bank loan is secured by way of a legal mortgage and fixed charge over the leasehold property.
The bank loan is for a term of 5 years, interest is charged quarterly at a margin of 7.152% per annum and capital repayments of £11,250 per quarter are due, with the balance to be repaid in full at the end of the loan term.
Other borrowings include two loans of £411,700 and £165,261 from the parent company, Dholak Partnership Holdings Limited (formerly Axis House Heathrow Limited). The loans are for terms of 25 and 45 years, respectively, payable in full at the end of the loan term. Both loans bear interest at 2% per annum, payable throughout the term in such amounts, and at such frequency, as the company (acting reasonably) can afford.
13
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,357,072
1,357,072
1,357,072
1,357,072
DHOLAK PARTNERSHIP HOMES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
14
Related party transactions
Included within amounts owing to companies under common control is an amount of £51,668 (2023: £161,662) due to the parent company Dholak Partnership Holdings Ltd (formerly Axis House Heathrow Ltd), in relation to interest free loans of £51,668 to the company and £11,538 of accrued interest on long-term borrowings.
Included within amounts owing to companies and entities under common control are amounts owing to Dholak Estates Limited £8,034 (2023: £8,034), Dholak Limited £11,503 (2023: £11,503), Hollyhedge Limited £52,908 (2023: £52,788), Squire Estates Limited £48,061 (2023: £48,061) in relation to expenses paid on behalf of the company or amounts loaned from companies which are under the control of the ultimate shareholders.
During the year the company incurred management charges of £15,523 (2023: £6,315), payable to one of the Director's Partnership business. At the year end, a balance of £83,070 (2023: £25,946) was due to the Partnership.
Included within trade creditors at the year-end is an amount of £46,083 (2023 £23,264) owing to Westcombe Management Limited in respect of service charges payable in advance on the leasehold property. Westcombe Management Limited is under the control of one of the Director's and his wife, and manages the property on behalf of Squire Estates Limited (who owns the freehold).
15
Parent company
The company's ultimate parent company is Dholak Partnership Holdings Limited (formerly Axis House Heathrow Limited). The registered office of Dholak Partnership Holdings Limited is Acre House, 11/15 William Road, London, NW1 3ER.
16
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(5,277)
31,375
Adjustments for:
Finance costs
121,823
93,127
Depreciation and impairment of tangible fixed assets
28,716
28,716
Movements in working capital:
Decrease/(increase) in debtors
15,310
(18,765)
Increase/(decrease) in creditors
5,653
(18,638)
Cash generated from operations
166,225
115,815
17
Analysis of changes in net debt
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
618
(598)
20
Borrowings excluding overdrafts
(2,156,615)
45,000
(2,111,615)
(2,155,997)
44,402
(2,111,595)
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