Chestnut Holdings Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06514800 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 August 2021

for

Chestnut Holdings Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

Kawaljit Singh Obhrai

REGISTERED OFFICE:

SDC (2012) Ltd P/A Shah Dodhia & Co

173 Cleveland Street

London

W1T 6QR

REGISTERED NUMBER:

06514800 (England and Wales)

ACCOUNTANTS:

Shah Dodhia & Co

173 Cleveland Street

London

W1T 6QR

FIXED ASSETS

Investments

4

100

100

CURRENT ASSETS

Debtors

5

2,953,354

2,646,940

CREDITORS

Amounts falling due within one year

6

498,346

255,225

NET CURRENT ASSETS

2,455,008

2,391,715

TOTAL ASSETS LESS CURRENT LIABILITIES

2,455,108

2,391,815

CREDITORS

Amounts falling due after more than one year

7

(2,157,139

)

(2,102,972

)

PROVISIONS FOR LIABILITIES

(1,778,341

)

(1,353,730

)

NET LIABILITIES

(1,480,372

)

(1,064,887

)

CAPITAL AND RESERVES

Called up share capital

100

100

Equity reserves

293,500

293,500

Retained earnings

(1,773,972

)

(1,358,487

)

SHAREHOLDERS' FUNDS

(1,480,372

)

(1,064,887

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 1 August 2022 and were signed by:

Kawaljit Singh Obhrai - Director

1.	STATUTORY INFORMATION

Chestnut Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Consolidation

In the opinion of the director, the company and its subsidiary undertakings comprise a small group. The company has therefore taken an advantage of the exemption provided by Section 398 of the Companies Act 2006 not to prepare the group accounts.

Going concern

The company has net liabilities of £1,480,372 (2020: £1,064,887) as at 31 August 2021.

The financial statements have been prepared on the going concern basis which the director considers to be appropriate for the following reasons:

The director has prepared a forecast for a period of 12 months from the date of approval of these financial statements for the intermediate subsidiary company which indicates that the covenants will continue to be breached for the period, although trading is likely to be at better levels than in 2021 and 2020.

The company's immediate subsidiary undertaking is financed by a bank loan which is secured on the hotel asset. This loan facility has already been breached at the Balance Sheet date.

Whilst the bank which has provided the loan to the company has not waived the breaches and retains their rights under the facility agreement, they have indicated that they do not have any present intention to exercise any of these rights under the facility agreement and intend to continue make the facility available to the company.

The director intends to obtain covenant waivers in due course when trading has resumed to pre pandemic levels and believes that the company will continue to receive financial support from the bank for the foreseeable future.

Due to the breaches of covenants, which have not been waived by the bank, and in view of the fact that the bank has retained its rights under the facility agreement, material uncertainty exists which may cast significant doubt about the company's ability to continue as a going concern, and therefore to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Financial instruments

Investment in subsidiary

Investment in subsidiary is stated at the net asset value of the subsidiary company, which is considered to be the its fair value, unless the net asset value is negative, in which case the investment's carrying value is considered to be nil. Difference between the net asset value and the historical cost is recognised in other comprehensive income (OCI), with net revaluation gain recognised in OCT and net revaluation loss in profit and loss to the extent that this is not reversal of previous revaluation gain.

Borrowings classified as basic financial instruments

Borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 1 (2020 - 1 ) .

4.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 September 2020

and 31 August 2021

100

NET BOOK VALUE

At 31 August 2021

100

At 31 August 2020

100

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Amounts owed by group undertakings

2,953,354

2,646,940

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

496,206

253,112

Taxation and social security

2,140

2,113

498,346

255,225

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

2,157,139

2,102,972

8.	RELATED PARTY DISCLOSURES

The company received an interest bearing loan from its shareholders Sycamore Ltd and Purple Zebra Ltd. Interest is payable at an average cost of finance to the group plus a margin of 0.25%. The total balances outstanding at the Balance Sheet date were £1,195,083 and £962,056 respectively (2020: £1,154,001 and £948,971). Terms of the loan have been extended up to 1 September 2022.

The director confirms that there were no other material related party transactions during the year that require disclosure.

Other than the transactions disclosed above, the company's other related party transactions were with wholly owned subsidiaries and so have not been disclosed.

9.	ULTIMATE CONTROLLING PARTY

The parent company is Sycamore Ltd, a company registered in Isle of Man.

The ultimate controlling party is The Blue Waters Trust, a trust registered in Isle of Man.