ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 06345932

KHANNA ENTERPRISES (HOLDINGS) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

KHANNA ENTERPRISES (HOLDINGS) LIMITED

COMPANY INFORMATION

Director	A Khanna


Registered number	06345932


Registered office	Aston House
	Cornwall Avenue
	London
	N3 1LF


Independent auditor	Adler Shine LLP
	Chartered Accountants and Statutory Auditor
	Aston House
	Cornwall Avenue
	London
	N3 1LF

KHANNA ENTERPRISES (HOLDINGS) LIMITED

CONTENTS

	Page
Group strategic report	1
Director's report	2 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated balance sheet	10 - 11
Company balance sheet	12 - 13
Consolidated statement of changes in equity	14
Company statement of changes in equity	15
Consolidated statement of cash flows	16
Consolidated analysis of net debt	17
Notes to the financial statements	18 - 31

KHANNA ENTERPRISES (HOLDINGS) LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The principal activity of the group continued to be that of operation of Hotel.

Business review

During the year, the hotel delivered a steady performance despite the inflationary pressures, staffing shortages and changes in travel demand.
Looking ahead, the company will focus on:
• Strengthening its position in corporate and leisure markets.
• Enhancing guest experiences through refurbishments and expanded amenities
• Implementing sustainable practices to reduce costs and environmental impact.
Overall, the director considers the hotel’s performance satisfactory in the context of current market conditions and remain confident about its long-term growth and potential.

Principal risks and uncertainties

The group operates in a highly competitive hospitality market, where fluctuations in occupancy rates and
customer preferences present ongoing risks. The group mitigates these risks by closely monitoring industry
trends and continuously enhancing its service offerings and guest experiences to remain relevant and appealing.
To strengthen its market position, the company invests strategically in advertising, digital marketing campaigns,
and promotional partnerships with travel platforms and booking agents. These efforts are designed to increase
brand visibility, attract new guests, and retain loyal customer.

Financial key performance indicators

The directors believe the KPIs of the company are growth in turnover and profit before tax.

Other key performance indicators

The Company monitors a range of key performance indicators to assess operational efficiency, financial health,
and customer satisfaction across its hotel portfolio. Core metrics such as Occupancy Rate, Average Daily Rate
(ADR), and Revenue Per Available Room (RevPAR) provide insight into room performance and revenue
generation. These are benchmarked regularly against industry standards to ensure competitiveness.

This report was approved by the board and signed on its behalf.

................................................

A Khanna

Director

Date: 30 September 2025

Page 1

KHANNA ENTERPRISES (HOLDINGS) LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Group'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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £127,258 (2023 - loss £216,248).

No dividends were paid during the financial year (2023 - £Nil).

Director

The director who served during the year was:

A Khanna

Future developments

The group intends to continue its activities and improve the facilities and services offered to customers.

Page 2

KHANNA ENTERPRISES (HOLDINGS) LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Engagement with suppliers, customers and others

This section serves as the directors' section 172 statement which requires designated members to take into
consideration the interests of stakeholders in their decision making.
The director continues to have regard to the interests of the compnay's employees and other stakeholders,
including the impact of its activities on the community, suppliers, customers, the environment and the compnay's
reputation, when making decisions. Acting in good faith and considering what is most likely to promote the
success of the compnay in the long term, including:
The director considers the interest of employees and deems employment a primary factor in the success of the
company. The company aims to be a responsible employer and that includes temporary employees and
consultants. Matters including heath and safety are primary considerations when making decisions.
When making decisions on the compnay's strategies and operations, the director also considers the impact of
these decisions on the community environment.
As the company grows the directoris aware of the importance of its reputation and ensurse that management
operates the compnay in a reasonable manner with integrity. The director seeks to ensure that this culture is
understood and shared across the company.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he 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 and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 3

KHANNA ENTERPRISES (HOLDINGS) LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditors

The auditors, Adler Shine LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

A Khanna

Director

Date: 30 September 2025

Page 4

KHANNA ENTERPRISES (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHANNA ENTERPRISES (HOLDINGS) LIMITED

Opinion

We have audited the financial statements of Khanna Enterprises (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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.

Basis for opinion

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 Group 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 Group's or the parent 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 director with respect to going concern are described in the relevant sections of this report.

Page 5

KHANNA ENTERPRISES (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHANNA ENTERPRISES (HOLDINGS) LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of director's 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

As explained more fully in the Director's responsibilities statement set out on page 2, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent 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 director either intends to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.

Page 6

KHANNA ENTERPRISES (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHANNA ENTERPRISES (HOLDINGS) LIMITED (CONTINUED)

Auditors' 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 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 Group 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities;
• performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
• reviewed minutes of meetings;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances of non-compliance. The key laws and regulations we considered in this context included
UK Companies Act, data protection, anti-bribery, employment law, health and safety and Money
Laundering Act.
• discussed matters among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 7

KHANNA ENTERPRISES (HOLDINGS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KHANNA ENTERPRISES (HOLDINGS) LIMITED (CONTINUED)

Use of our 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 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.

Engin Zekia BSc FCA (Senior statutory auditor)

for and on behalf of

Adler Shine LLP

Chartered Accountants and Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF

30 September 2025

Page 8

KHANNA ENTERPRISES (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

		As restated
	2024	2023
Note	£	£


Turnover	3	14,195,702	9,608,061
Cost of sales		(5,855,281)	(3,000,538)
Gross profit		8,340,421	6,607,523
Administrative expenses		(5,817,046)	(4,631,455)
Other operating income	4	68,833	68,833
Operating profit		2,592,208	2,044,901
Interest receivable and similar income	7	36,661	62,294
Interest payable and similar expenses	8	(2,501,611)	(2,323,443)
Profit/(loss) before taxation		127,258	(216,248)
Profit/(loss) for the financial year		127,258	(216,248)

Profit/(loss) for the year attributable to:
Owners of the parent Company	127,258	(216,248)
	127,258	(216,248)

Total comprehensive income for the year attributable to:
Owners of the parent Company	127,258	(216,248)
	127,258	(216,248)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 18 to 31 form part of these financial statements.

Page 9

KHANNA ENTERPRISES (HOLDINGS) LIMITED

REGISTERED NUMBER: 06345932

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2024

		As restated
	2024	2023
Note	£	£

Fixed assets
Tangible assets	10		53,415,693		52,298,332
			53,415,693		52,298,332
Current assets
Stocks	12	49,389		28,463
Debtors: amounts falling due after more than one year	13	-		4,589
Debtors: amounts falling due within one year	13	1,589,235		460,765
Cash at bank and in hand	14	1,147,851		1,021,259
		2,786,475		1,515,076
Creditors: amounts falling due within one year		(13,016,550)		(13,186,466)
Net current liabilities			(10,230,075)		(11,671,390)
Total assets less current liabilities			43,185,618		40,626,942
Creditors: amounts falling due after more than one year			(35,201,376)		(32,769,958)
Net assets			7,984,242		7,856,984

Capital and reserves
Called up share capital	6	6
Profit and loss account	7,984,236	7,856,978
Equity attributable to owners of the parent Company	7,984,242	7,856,984
	7,984,242	7,856,984

Page 10

KHANNA ENTERPRISES (HOLDINGS) LIMITED

REGISTERED NUMBER: 06345932

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

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

................................................

A Khanna

Director

Date: 30 September 2025

The notes on pages 18 to 31 form part of these financial statements.

Page 11

KHANNA ENTERPRISES (HOLDINGS) LIMITED

REGISTERED NUMBER: 06345932

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	10		30,689		22,360
Investments	11		301		301
			30,990		22,661
Current assets
Debtors: amounts falling due within one year	13	18,997,509		18,567,297
Cash at bank and in hand	14	4,358		195,069
		19,001,867		18,762,366
Creditors: amounts falling due within one year	15	(8,943,771)		(8,768,445)
Net current assets			10,058,096		9,993,921
Total assets less current liabilities			10,089,086		10,016,582
Net assets			10,089,086		10,016,582

Capital and reserves
Called up share capital		6		6
Profit and loss account brought forward	10,016,576		5,550,744
Profit for the year	72,504		4,465,832
Profit and loss account carried forward		10,089,080		10,016,576
		10,089,086		10,016,582

Page 12

KHANNA ENTERPRISES (HOLDINGS) LIMITED

REGISTERED NUMBER: 06345932

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

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

................................................

A Khanna

Director

Date: 30 September 2025

The notes on pages 18 to 31 form part of these financial statements.

Page 13

KHANNA ENTERPRISES (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£
At 1 January 2023 (as previously stated)	6	7,805,701	7,805,707	7,805,707
Prior year adjustment - correction of error	-	267,525	267,525	267,525
At 1 January 2023 (as restated)	6	8,073,226	8,073,232	8,073,232
Comprehensive income for the year
Profit for the year (as restated)	-	(216,248)	(216,248)	(216,248)

At 1 January 2024	6	7,856,978	7,856,984	7,856,984
Comprehensive income for the year
Profit for the year	-	127,258	127,258	127,258
At 31 December 2024	6	7,984,236	7,984,242	7,984,242

The notes on pages 18 to 31 form part of these financial statements.

Page 14

KHANNA ENTERPRISES (HOLDINGS) LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	6	5,550,744	5,550,750
Comprehensive income for the year
Profit for the year	-	4,465,832	4,465,832

At 1 January 2024	6	10,016,576	10,016,582
Comprehensive income for the year
Profit for the year	-	72,504	72,504
At 31 December 2024	6	10,089,080	10,089,086

The notes on pages 18 to 31 form part of these financial statements.

Page 15

KHANNA ENTERPRISES (HOLDINGS) LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit/(loss) for the financial year	127,258	(216,248)
Adjustments for:
Depreciation of tangible assets	952,410	514,147
Interest paid	2,501,611	2,323,443
Interest received	(36,661)	(62,294)
(Increase) in stocks	(20,924)	(23,531)
(Increase)/decrease in debtors	(1,123,879)	1,167,747
Increase in creditors	35,514	4,107,029
Net cash generated from operating activities	2,435,329	7,810,293

Cash flows from investing activities
Purchase of tangible fixed assets	(2,069,771)	(28,184,979)
Interest received	36,661	62,294
Net cash from investing activities	(2,033,110)	(28,122,685)
Cash flows from financing activities
New secured loans	2,119,203	17,447,393
Other new loans	106,781	-
Interest paid	(2,501,611)	(2,323,443)
Net cash used in financing activities	(275,627)	15,123,950
Net increase/(decrease) in cash and cash equivalents	126,592	(5,188,442)
Cash and cash equivalents at beginning of year	1,021,259	6,209,701
Cash and cash equivalents at the end of year	1,147,851	1,021,259

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,147,851	1,021,259
	1,147,851	1,021,259

The notes on pages 18 to 31 form part of these financial statements.

Page 16

KHANNA ENTERPRISES (HOLDINGS) LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2024


At 1 January 2024	Cash flows	At 31 December 2024
£	£	£

Cash at bank and in hand	1,021,259	126,592	1,147,851
Debt due after 1 year	(32,326,389)	(2,497,255)	(34,823,644)
Debt due within 1 year	(1,591,011)	(25,035)	(1,616,046)
	(32,896,141)	(2,395,698)	(35,291,839)

The notes on pages 18 to 31 form part of these financial statements.

Page 17

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

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

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and 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 Group management to exercise judgment in applying the Group's accounting policies.

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

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

The following principal accounting policies have been applied:

2.2

Basis of consolidation

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

2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will be able to continue trading for the foreseeable future. The group has net assets of £7,984,242 (2023 - £7,856,984) and net current liabilities of £10,230,075 (2023 - £11,671,390) at the balance sheet date. Included within current liabilities are loans due to the Shareholder and companies under common control totalling £8,645,385 (2023 - £9,049,932). The Shareholder has stated that he intends, without creating a contractual obligation, to provide such support as may be necessary to the group, and confirmed his commitment to provide funds to meet ongoing expenses for at least 12 months from the date of approval of the financial statements.
The director is therefore satisfied that the going concern basis is appropriate for the preparation of these financial statements.

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KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Interest income

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

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Borrowing costs

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

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KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Pensions

Defined contribution pension plan

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

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

2.9

Tangible fixed assets

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

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

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

Depreciation is provided on the following basis:

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

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

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

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Stocks

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

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

2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.15

Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Page 21

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Financial instruments (continued)

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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 profit or loss.

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

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

Basic 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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

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

Page 22

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Financial instruments (continued)

Derecognition of financial liabilities

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

	Sales	14,195,702	9,608,061

Analysis of turnover by country of destination:

					2024	2023
					£	£

	United Kingdom	14,195,702	9,608,061

4.	Other operating income
		2024	2023
		£	£

	Fees receivable	68,833	68,833

Exchange differences

13,802

2,691

Page 23

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Employees
	Staff costs were as follows:

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£


Wages and salaries	3,710,574	2,629,721	249,664	179,755
Social security costs	237,698	155,235	27,559	20,390
Cost of defined contribution scheme	56,987	37,475	9,746	7,079
	4,005,259	2,822,431	286,969	207,224

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

	Group	Group	Company	Company
	2024	2023	2024	2023
	No.	No.	No.	No.

Employees	125	130	4	4

7.	Interest receivable
		2024	2023
		£	£

	Other interest receivable	36,661	62,294
		36,661	62,294

8.	Interest payable and similar expenses
		2024	2023
		£	£

Bank interest payable	2,473,043	2,297,103
Other loan interest payable	26,340	26,340
Other interest payable	2,228	-
	2,501,611	2,323,443

Page 24

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024



Total current tax	-	-

	Deferred tax
	Total deferred tax	-	-


		-	-

Profit/(loss) on ordinary activities before tax

127,258

(216,248)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)	31,815	(54,062)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	16,797	52,173
Capital allowances for year in excess of depreciation	(22,473)	-
Utilisation of tax losses	(25,500)	1,512
Changes in provisions leading to an increase (decrease) in the tax charge	(639)	377
Total tax charge for the year	-	-

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Fixtures and fittings	Computer equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	52,644,599	83,355	323,487	85,632	53,137,073
Additions	(17,586)	27,069	2,034,083	26,205	2,069,771
At 31 December 2024	52,627,013	110,424	2,357,570	111,837	55,206,844
Depreciation
At 1 January 2024	660,376	31,522	91,012	55,831	838,741
Charge for the year on owned assets	525,558	21,806	379,545	25,501	952,410
At 31 December 2024	1,185,934	53,328	470,557	81,332	1,791,151
Net book value
At 31 December 2024	51,441,079	57,096	1,887,013	30,505	53,415,693
At 31 December 2023	51,984,223	51,832	232,475	29,802	52,298,332

The net book value of land and buildings may be further analysed as follows:
	2024	2023
	£	£

	Freehold	51,441,079	51,984,224

Page 26

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.Tangible fixed assets (continued)

	Company

	Fixtures and fittings	Computer equipment	Total
	£	£	£
Cost or valuation
At 1 January 2024	22,360	-	22,360
Additions	6,340	1,989	8,329
At 31 December 2024	28,700	1,989	30,689

At 31 December 2024	-	-	-
Net book value
At 31 December 2024	28,700	1,989	30,689
At 31 December 2023	22,360	-	22,360

The net book value of land and buildings may be further analysed as follows:

Page 27

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	300
	At 31 December 2024	300

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

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

12.	Stocks
		Group	Group
		2024	2023
		£	£

	Raw materials and consumables	49,389	28,463

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 28

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	Debtors
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Due after more than one year
Prepayments and accrued income	-	4,589	-	-
	-	4,589	-	-

Group	Group	Company	Company
2024	2023	2024	2023
£	£	£	£

Due within one year
Trade debtors	327,596	23,320	17,400	-
Amounts owed by group undertakings	-	-	18,755,109	18,483,897
Other debtors	940,174	283,414	-	8,400
Prepayments and accrued income	321,465	154,031	225,000	75,000
	1,589,235	460,765	18,997,509	18,567,297

14.	Cash and cash equivalents
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Cash at bank and in hand	1,147,851	1,021,259	4,358	195,069
	1,147,851	1,021,259	4,358	195,069

15.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2024	2023	2024	2023
		£	£	£	£

Bank loans	269,854	541,126	-	-
Trade creditors	987,646	968,744	7,168	6,859
Other taxation and social security	610,550	360,672	7,826	6,654
Other creditors	9,830,721	11,055,718	8,892,921	8,724,932
Accruals and deferred income	1,317,779	260,206	35,856	30,000
	13,016,550	13,186,466	8,943,771	8,768,445

Page 29

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

16.	Creditors: Amounts falling due after more than one year
		Group	Group As restated
		2024	2023
		£	£

Bank loans	34,716,864	32,326,389
Other loans	106,781	-
Accruals and deferred income	377,731	443,569
	35,201,376	32,769,958

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


Amounts falling due within one year	269,854	541,126
Amounts falling due 1-2 years	522,197	764,251
Amounts falling due 2-5 years	23,537,550	22,061,041
Amounts falling due after more than 5 years	10,763,897	9,501,097
	35,093,498	32,867,515

18.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:

19.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

6 (2023 - 6) Ordinary shares shares of £1.00 each	6	6

Page 30

KHANNA ENTERPRISES (HOLDINGS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

20.	Financial commitments, guarantees and contingent liabilities
	The group has provided security over its assets on borrowings by related entities, which totalled £53.4m at the year end.

21.	Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administrered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £56,986 (2023 - £37,475). Contributions totalling £NIL (2023 - £5,943) were payable to the fund at the balance sheet date.

22.

Related party transactions

At the balance sheet date, the group and company owed £7,553,443 (2023 - £8,005,990) to companies under common control.
At the balance sheet date, the group and the company owed the director £1,096,192 (2023 - £993,942) and £1,016,942 (2023 - £718,942) respectively. A loan of £999,900 was made by the director to the group and accrues interest at 2.6%. All other loans are interest free and repayable on demand.

23.	Controlling party

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

Page 31