Company registration number 10195158 (England and Wales)
SGS HOTELS (READING) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
PAGES FOR FILING WITH REGISTRAR
SGS HOTELS (READING) LIMITED
CONTENTS
Page
Balance sheet
2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
SGS HOTELS (READING) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -
2025
2024
£
£
(Loss)/profit for the year
(622,933)
416,202
Other comprehensive income
-
-
Total comprehensive income for the year
(622,933)
416,202
SGS HOTELS (READING) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 2 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
4
20,000
40,000
Tangible assets
5
5,387,253
5,506,135
5,407,253
5,546,135
Current assets
Stocks
7,297
-
Debtors
6
269,113
140,032
Cash at bank and in hand
168,127
593,746
444,537
733,778
Creditors: amounts falling due within one year
7
(4,223,443)
(4,270,414)
Net current liabilities
(3,778,906)
(3,536,636)
Total assets less current liabilities
1,628,347
2,009,499
Creditors: amounts falling due after more than one year
8
(1,082,743)
(1,167,413)
Provisions for liabilities
(125,581)
(129,130)
Net assets
420,023
712,956
Capital and reserves
Called up share capital
5,900
5,000
Share premium account
329,100
-
0
Revaluation reserve
442,656
442,656
Profit and loss reserves
(357,633)
265,300
Total equity
420,023
712,956

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 6 November 2025 and are signed on its behalf by:
Mr Subhash Gulati
Director
Company registration number 10195158 (England and Wales)
SGS HOTELS (READING) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2023
5,000
-
0
442,656
(150,902)
296,754
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
416,202
416,202
Balance at 31 March 2024
5,000
-
0
442,656
265,300
712,956
Year ended 31 March 2025:
Loss and total comprehensive income
-
-
-
(622,933)
(622,933)
Issue of share capital
900
329,100
-
-
330,000
Balance at 31 March 2025
5,900
329,100
442,656
(357,633)
420,023
SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
1
Accounting policies
Company information

SGS Hotels (Reading) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ramada Solihull, The Square, Solihull, West Midlands, B91 3RF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements , the directors have a reasonable expectation that the true

company has adequate resources to continue in operational existence for the foreseeable future. Thus the

directors continue to support the company and to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 5 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
33.33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 6 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 7 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Total
18
13
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2024 and 31 March 2025
200,000
Amortisation and impairment
At 1 April 2024
160,000
Amortisation charged for the year
20,000
At 31 March 2025
180,000
Carrying amount
At 31 March 2025
20,000
At 31 March 2024
40,000
5
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 April 2024
6,605,250
217,793
302,772
20,857
7,146,672
Additions
-
0
10,531
49,828
14,649
75,008
At 31 March 2025
6,605,250
228,324
352,600
35,506
7,221,680
Depreciation and impairment
At 1 April 2024
1,254,307
138,515
242,608
5,107
1,640,537
Depreciation charged in the year
132,105
22,452
27,498
11,835
193,890
At 31 March 2025
1,386,412
160,967
270,106
16,942
1,834,427
Carrying amount
At 31 March 2025
5,218,838
67,357
82,494
18,564
5,387,253
At 31 March 2024
5,350,943
79,278
60,164
15,750
5,506,135

Freehold land and buildings with a carrying amount of £5,218,838 (202 4: £5,350,943) have been pledged to secure borrowings of the company.

SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
6
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
45,666
86,008
Corporation tax recoverable
163,300
-
0
Other debtors
60,148
54,025
269,114
140,033
7
Creditors: amounts falling due within one year
2025
2024
£
£
Bank loans
13,773
158,564
Trade creditors
93,027
138,053
Corporation tax
-
0
154,327
Other taxation and social security
16,282
32,198
Other creditors
4,100,361
3,787,272
4,223,443
4,270,414

Other creditors include a balance of £ 4,05 8,377 (202 4: £3,261,828) due to the related company SGS Hotels (UK) Limited. The interest has been charged at a rate of 0.50% per annum.

Other creditors also include a balance of £3,367 (202 4: £458,849) due to the related company SGS Infratech Ltd (India).

8
Creditors: amounts falling due after more than one year
2025
2024
£
£
Bank loans and overdrafts
1,082,743
1,167,413
SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
8
Creditors: amounts falling due after more than one year
(Continued)
- 10 -

Loan Security:

The security of the new loan is as follows:

1. Fixed and floating charge over all of the assets of SGS Hotels (Reading) Limited.

2. First legal mortgage over the Freehold property at Best Western Hotel, Bath Road, Calcot, Reading.

3. The charge over the shares in SGS Hotels (Reading) Limited and SGS Hotels (UK) Limited.

4. A cross guarantee over all of the assets of SGS Hotels (UK) Limited.

5. A guarantee from S GS Infratech Limited (India).

6. Bank loans include secured loans totalling £1,096,516.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Senior Statutory Auditor:
Mrs Stella Louise Broomhall FCCA
Statutory Auditor:
Fields Business Advisors Limited
Date of audit report:
7 November 2025
10
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

SGS Hotels (Reading) Limited is due of £4,05 8,337 (202 4: £3,261,828) to SGS Hotels (UK) Limited and due a balance of £3,367 (202 4: £458,849) to SGS Infratech Ltd (India), the directors in both companies are the same.

It has been mutually agreed to charge interest at a rate of 12% per annum on loans from SGS Infratech Ltd (India) balance and 0.50% per annum on loans from SGS Hotels (UK) Limited, the loans are without a fixed capital repayment period.

11
Parent company
SGS HOTELS (READING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Parent company
(Continued)
- 11 -

The company is wholly controlled by SGS Infratech Limited based in India, its registered office address is R-10, Green Park Main, New Delhi.

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