Company Registration No. 14528254 (England and Wales)
196 SERVICED RESIDENCES LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
196 SERVICED RESIDENCES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
196 SERVICED RESIDENCES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
Notes
£
£
Fixed assets
Tangible assets
4
90,913
Current assets
Debtors
5
68,108
Cash at bank and in hand
1,147
69,255
Creditors: amounts falling due within one year
6
(1,091,031)
Net current liabilities
(1,021,776)
Total assets less current liabilities
(930,863)
Capital and reserves
Called up share capital
10
Profit and loss reserves
(930,873)
Total equity
(930,863)
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 12 March 2025 and are signed on its behalf by:
Lik Peng Loh
Director
Company Registration No. 14528254
196 SERVICED RESIDENCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Period ended 31 March 2024:
Loss and total comprehensive income for the period
-
(930,873)
(930,873)
Issue of share capital
10
-
10
Balance at 31 March 2024
10
(930,873)
(930,863)
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
196 Serviced Residences Limited is a private company limited by shares incorporated in England and Wales. The registered office is Town Hall Hotel & Apartments, 8 Patriot Square, London, United Kingdom, E2 9NF.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The company had net liabilities of £930,863 and net current liabilities of £1,021,776 as at 31 March 2024. The company has the financial support of one of its directors (Lik Peng Loh) and its immediate parent undertaking, Mastelle Limited, for a period of at least 12 months after the approval of these financial statements so the company can meet its expenses and liabilities as they fall due. Having been satisfied that such support is available, the directors have a reasonable expectation that the company has adequate resources available to continue in operation for the foreseeable future and there are no material uncertainties regarding going concern. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover is derived from hotel operations, and arose wholly in the United Kingdom. Turnover is recognised when services have been rendered. The turnover is derived primarily from the rental of rooms. Turnover is all rendering of goods and services.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
IT equipment
33% straight line
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.
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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.
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 and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recoverability of amounts owed by group undertakings
Amounts owed from the group undertakings are assessed for the recoverability of the balance. The directors considered amounts due from Respite Management Limited, a related group entity, to not be recoverable and these have been provided for in these accounts. The bad debt provision against the amounts due from the related group entity is £311,329.
3
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2024
Number
Total
9
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
IT equipment
Total
£
£
£
£
£
Cost
At 7 December 2022
Additions
44,485
21,155
6,507
72,147
Transfer
639,975
395
33,988
9,776
684,134
Disposals
(639,975)
(639,975)
At 31 March 2024
44,880
55,143
16,283
116,306
Depreciation and impairment
At 7 December 2022
Depreciation charged in the Period
2,498
12,690
10,205
25,393
At 31 March 2024
2,498
12,690
10,205
25,393
Carrying amount
At 31 March 2024
42,382
42,453
6,078
90,913
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 7 -
5
Debtors
2024
Amounts falling due within one year:
£
Trade debtors
19,137
Other debtors
28,631
Prepayments and accrued income
20,340
68,108
6
Creditors: amounts falling due within one year
2024
£
Trade creditors
55,574
Amounts owed to group undertakings
865,386
Corporation tax
11,442
Other taxation and social security
57,108
Other creditors
6,677
Accruals and deferred income
94,844
1,091,031
7
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.
The senior statutory auditor was Gilles Siow.
The auditor was HW Fisher Audit.
8
Financial commitments, guarantees and contingent liabilities
The company entered into a cross guarantee bank loan with its parent and fellow group companies. The security over the bank loans refinanced in the parent company comprises a first legal charge over the lease extended by Mastelle Limited to 196 Serviced Residences Limited and a debenture incorporating a first fixed and floating charge on all assets, both present and future, of 196 Serviced Residences Limited. There are personal guarantees from the directors of the company jointly and severally.
196 SERVICED RESIDENCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
£
17,082,740
10
Parent company
The immediate parent company is Mastelle Limited, a company incorporated in the British Virgin Islands with a registered office at Palm Grove House P.O. Box 438, Road Town, Tortola, British Virgin Islands.
The ultimate parent company is Equus et Taurus Capital Pte Limited, a company incorporated in Singapore with a registered office at 13 Cantonment Road, 089737, Singapore.
The company is controlled by Hung Soo Loh and Pek Har Loh.