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Registered number: 03417456
SUREJOGI GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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SUREJOGI GROUP LIMITED
COMPANY INFORMATION
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J P Sanger (resigned 28 February 2025)
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Chartered Accountants & Statutory Auditor
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SUREJOGI GROUP LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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SUREJOGI GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
Surejogi Group Limited is a leading player in the hospitality sector, focusing primarily on hotel operations. With a dedication to excellence and a customer-centric approach, we strive to create memorable experiences for our guests while maintaining sustainable business practices.
Surejogi Group continued it growth in 2024, driven by its strategic focus on creating an innovative and scalable hotel operations platform. The company saw a significant increase in turnover, rising by almost 9% to £8.9 million in 2024 compared to £8.1 million in 2023. Profit before tax stands at £1.8 million, marking a profit in line with previous year. The hotel is gradually inching closer to pre covid level.
Surejogi Group continued its strategic investments in building an innovative, scalable, and robust hotel operations platform. Consequently, Cost of sales increased marginally at the same time administrative expenses reduced by a similar amount. The rise was mainly driven by increased inflation costs however administrative efficiencies were also achieved which helped reduce the administrative cost.
Overall, Surejogi Group's performance in 2024 underscores its commitment to innovation, scalability, and customer-centricity, positioning the company for continued growth and success in the hotel operations sector.
Principal risks and uncertainties
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The Companies Act 2006 requires that the strategic report contain a description of the principal risks and uncertainties facing the Group. Risk management is fundamental to the operation of Surejogi Group's hotel business, and the Company continually evaluates its risks and risk appetite. Here are the principal risks and uncertainties identified by the Company, along with the controls implemented to mitigate them:
Regulatory Compliance: Regulatory compliance risk arises from the evolving regulatory landscape in the hospitality industry. Surejogi Group must adhere to various regulations, including health and safety standards, zoning laws, and licensing requirements. The Company maintains close compliance oversight and regularly updates its policies and procedures to ensure alignment with regulatory changes.
Market Demand Fluctuations: Market demand fluctuations pose a significant risk to hotel operations, particularly during economic downturns or unforeseen events such as pandemics or natural disasters. Surejogi Group closely monitors market trends and employs dynamic pricing strategies and flexible staffing models to adapt to changing demand patterns effectively.
Operational Challenges: Operational challenges, such as maintenance issues, supply chain disruptions, or staffing shortages, can impact the smooth functioning of hotel operations. Surejogi Group implements rigorous maintenance schedules, diversifies its supplier base, and invests in employee training and development to mitigate operational risks and ensure uninterrupted guest experiences.
Cybersecurity and Data Privacy: Cybersecurity and data privacy risks are increasingly prevalent in the hospitality industry, with the potential for data breaches or cyberattacks affecting guest information and payment systems. Sure Jogi Group invests in robust cybersecurity measures, including encryption protocols, firewall systems, and employee awareness training, to safeguard guest data and mitigate the risk of cyber threats.
Reputation Management: Maintaining a positive reputation is essential for the success of hotel operations, as negative publicity or customer dissatisfaction can significantly impact business performance. Surejogi Group prioritizes guest satisfaction through attentive customer service, regular feedback collection, and proactive resolution of guest complaints to uphold its reputation as a premier hospitality provider.
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SUREJOGI GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Environmental and Sustainability Risks: Environmental and sustainability risks, such as energy inefficiency, waste management issues, or community impact concerns, pose challenges to hotel operations. Surejogi Group implements eco-friendly practices, such as energy-saving initiatives, waste reduction programs, and community engagement efforts, to mitigate environmental risks and promote sustainable tourism practices.
Market Share: The rise of individual room rentals on platforms like Airbnb creates a more competitive market for hotels like Surejogi. This can lead to lower occupancy rates, especially for budget-conscious travellers or those seeking unique experiences hence resulting Pressure to reduce room rates to stay competitive with individual listings.
Financial key performance indicators
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Surejogi Group Ltd made strong progress throughout the year against it strategic goals which was driven by strong profitability on the back of significant increases in customer growth numbers.
2024 2023 %Change
£ £
Turnover 8,861,944 8,154,118 9%
Administrative expenses 6,190,916 6,410,187 -3.42%
Profit/(loss) before tax 1,262,348 2,303,646 -45%
Capital and reserves 8,855,611 8,042,236 10%
This report was approved by the board and signed on its behalf.
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SUREJOGI GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the year, after taxation, amounted to £813,375 (2023 - £2,084,594).
The company has not declared or proposed any divideds during the year (2023 - £Nil).
The directors who served during the year were:
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J P Sanger (resigned 28 February 2025)
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The Company will continue to provide hotel operations.
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SUREJOGI GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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SUREJOGI GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUREJOGI GROUP LIMITED
We have audited the financial statements of Surejogi Group Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to Note 2.14 to the financial statements, which describes the uncertainty arising from an ongoing tax investigation by HMRC. As stated in the note, while management has made provisions based on the information available, the final outcome and total financial impact of the investigation remain uncertain and cannot be reliably estimated at this time. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
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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.
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SUREJOGI GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUREJOGI GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
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SUREJOGI GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUREJOGI GROUP LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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:
∙Enquiring of management around actual and potential litigation and claims;
∙Reviewed the general ledger in detail for all transactions with related parties
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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SUREJOGI GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUREJOGI GROUP LIMITED (CONTINUED)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
Edward Passmore FCA (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
London
25 June 2025
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SUREJOGI GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 12 to 24 form part of these financial statements.
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SUREJOGI GROUP LIMITED
REGISTERED NUMBER: 03417456
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 24 form part of these financial statements.
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SUREJOGI GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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Comprehensive income for the year
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Comprehensive income for the year
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The notes on pages 12 to 24 form part of these financial statements.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Surejogi Group Limited is a private company limited by shares incorporated in England and Wales.
The address of the principal place of activity is 5 Curzon St, London, W1J 5HE.
The principal activity of the Company continued to be that of the operation of The Washington Mayfair Hotel.
2.Accounting policies
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Basis of preparation of financial statements
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The 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Mastcraft Limited as at March 31, 2024 and these financial statements may be obtained from companies house.
The financial statements have been prepared on the going concern basis, which assumes that the Company will continue to be able to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.
The Company made a profit before tax of £1,262,348 during the year, reporting net assets of £8,855,611 at 31 March 2024.
The Company, as for any business, relies upon the generation of profits and cash to create working capital to meet its liabilities as they fall due. Based on the results to date and future projections, the Directors are confident that the Company has adequate resources to meet future working capital requirements and to continue in operational existence for the foreseeable future and they consider it appropriate to prepare the financial statements on a going concern basis.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue represents income from hotel and restaurant operations excluding value added tax. It is recognised on the date of the provision of the related service. Turnover is derived solely from UK operations.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
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.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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 Company 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, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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 reporting 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.
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Cash and cash equivalents
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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.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
Dilapidation/ Repairs Provision
The estimated amount for the dilapidation provision and repairs is determined based on the current physical condition of the property under consideration. Management actively monitors and assesses the condition of these properties in collaboration with the property manager, receiving regular updates as necessary. Additionally, management has consulted with and obtained project estimates from specialist construction companies, incorporating these assessments into their estimation process.
The Company is currently subject to an ongoing investigation by HM Revenue & Customs (“HMRC”) in relation to certain historical tax positions. The investigation is focused on the treatment of provisions.
As of the reporting date, management has engaged with professional advisors and has provided for liabilities where it considers an outflow of economic benefits to be probable and can be reliably estimated. The unwinding of these provisions are included within interest payable and the tax impact on these if any would be included within current tax liabilities in the financial statements.
However, due to the complexity and ongoing nature of the investigation, there remains significant uncertainty regarding the final outcome and the total potential future tax impact. It is therefore not currently possible to quantify the full financial impact that may arise.
The directors continue to cooperate fully with the relevant authorities and will reassess the position as more information becomes available. Based on current information, the directors do not believe the matter gives rise to any material misstatement in the financial statements for the year ended 31 March 2024.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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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 key assumptions about the future, and other key sources of estimation uncertainty at the reporting period end that may have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:
Useful life of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates based on economic utilization and the physical condition of the assets. The management has used the best judgement for ascertaining the useful economic life of these assets based on their overall past experiences and also obtaining necessary information through discussions with their head of each department at the hotel property to understand the present condition of these assets.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provision for dilapidation/ repairs
The estimated amount for the dilapidation provision and repairs is determined based on the current physical condition of the property under consideration. Management actively monitors and assesses the condition of these properties in collaboration with the property manager, receiving regular updates as necessary. Additionally, management has consulted with and obtained project estimates from specialist construction companies, incorporating these assessments into their estimation process.
Management believes that the dilapidation provision provides external users of the financial statements with a true and fair view. The company, as part of the Mastcraft Limited group, has its consolidated financial statements reviewed by banks, which assess its financial stability when considering the provision of overdraft facilities.
It is important to note that this estimate is subject to inherent uncertainties. Once repairs commence, unforeseen factors may arise that were not accounted for in the original estimates, potentially leading to an understatement of liabilities. Furthermore, fluctuations in material costs and other related components may result in the estimate being either under or overstated.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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During the year, the Company obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Interest payable and similar expenses
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Unwinding of dilapidation provision
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UK Corporation tax on profits for the current period
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Origination and reversal of timing differences
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
10.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Changes in provisions leading to an increase (decrease) in the tax charge
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Income not taxable for tax purposes
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Deferred tax due to increase in tax rate
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Deferred tax timing difference
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Prepayments and accrued income
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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The balance includes an advance received from the landlord as a contribution towards planned major refurbishment works. The refurbishment includes both operational asset improvements and capital asset replacements, with certain elements being the responsibility of the landlord. The decision to undertake both aspects of the refurbishment simultaneously was made to ensure operational efficiency and cost-effectiveness.
This advance is interest-free and will be utilised in line with the refurbishment plans.
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Charged to profit or loss
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
17.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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Charged to profit or loss
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Allotted, called up and fully paid
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1,000 (2023 - 1,000) Ordinary shares of £1.00 each
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The company is a guarantor under a facility agreement dated 8 October 1997 between Paula Investments Limited (as borrower), the company (as guarantor), and Citibank (as arranger). Under this agreement, the lenders have made available to Paula a term loan facility of up to £37,000,000.
As part of the facility, the Company has granted a charge over its assets as security for Paula’s borrowings. This obligation remains in place until the facility is repaid in full.
No amounts have been drawn by the company under this facility, and the directors do not anticipate any liabilities arising in respect of this guarantee.
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SUREJOGI GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Profit and loss account
Comprises current and previous years retained profits and losses, less dividends paid.
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £5,609 (2023 - £4,520) were payable to the fund at the year end date.
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Commitments under operating leases
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At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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Included within amounts owed by group undertakings at the year end is an amount of £20,501,548 (2023 - £18,600,042) owed by Mastcraft Limited.
Included within other creditors greater than one year includes a loan payable to a company with common directors.
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The ultimate parent company is Mastcraft Limited by virtue of holding 80% shares in the company.
The Company's results are included in the consolidated accounts of Mastcraft Limited which can be obtained from its registered address 30 Poland Street, London, W1 F 8QS.
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