STRAWBERRY_STAR_GROUP_LIM - Accounts

The directors present the strategic report for the year ended 31 December 2021.

Strawberry Star Group (‘the Group’) is a multi-disciplined UK based property group engaged in acquiring and developing mixed-use sites as well providing various property management services for its clients.

2021 continued to remain impacted in the aftermath of COVID specifically in construction sector. While the group’s development activity revenues declined, the revenues from lettings, sales and property management services continued to grow. Despite the continued disruption and challenges that have arisen from the Covid 19 pandemic, and more latterly, the inflationary environment which has been exacerbated by the conflict in the Ukraine, the group has been resilient in protecting assets under management. The group has responded to the market headwinds by optimizing resource allocation, making it leaner and more efficient.

Until now the business model of the group has been primarily centred fee-based income. The focus is now shifting more towards building a stronger balance sheet. The group, post year end, have acquired a site in Maidstone for mixed use development along with a JV partner. The parent company also strengthened the balance sheet of the group by converting its £3.5mn of loan to equity in December 2022. The parent company has further made a capital commitment of £4.5mn in equity / debt to facilitate acquisition of investment stake in the real estate fund currently being managed by the group.

During the year, the Group generated revenues of £6,542,789, 4% decrease when compared to that generated in 2020 and a loss of £1,537,736 from £1,138,284 in 2020.

The group is proud to note that in 2021, the first phase of its marquee development project in Lu2on achieved practical completion with 401 residential units + commercial spaces, marking it the biggest mixed use project completed by the group till date. This also contributed in strengthening our estate agency franchise through a very strong presence of our sales and lettings agency in the Luton areas as well as addition to portfolio of estate / buildings under management.

The key performance indicators for the Strawberry Star Group are:

• Turnover for the year of £6,542,789;

• Operating Profit Margin of (13%) which is the operating profit as a percentage of turnover; and

• Current Asset Ratio of 0.13 which is the ratio of current assets to creditors due within one year.

UK property market have been impacted relentlessly first by Brexit uncertainty started in 2016 and remained until 2019, then COVID in 2020 and 2021 and now more recently by interest rate increases, energy crisis and overall inflationary environment.

Affordability issues, restrictions and other tax hikes have impacted real estate sales market in last few years. This has given a boost to the rental market which is continuously showing upward trend since last few quarters, with all industry forecasts showing this trend to continue for some time. Accordingly, the group has now turned its focus more towards Build To Rent (BTR). The group’s focus is London’s commuter towns where there is a huge requirement for good quality residential stock, specifically given the younger generation needs for more flexibility in their life styles and growing trend of remote working. The overall BTR fundamentals in London’s surrounding areas are very strong.

The Group has also adopted a number of operational and financial initiatives to minimise the impact of these various market headwinds on the business as a whole. An internal reorganisation allowed a significant reduction in cost base for the Group.

The Group continue to undertake various activities such as refinancing, planning enhancement and maintain property development momentum on various projects that will provide a positive impact on value on behalf of the Funds’ investors.

The Group, supported by its ultimate parent company in Singapore, will monitor costs closely, whilst exploring new innovative investment strategies aimed at the built to rent opportunity space.

The board reviews and manages the risks of the Group on an ongoing basis. A risk register is maintained and updated regularly.

Key risks identified at time of publication of accounts are as below.

Liquidity

In order to continue to meet the Group’s short-term debt obligations, the Group has and will continue to rely on a number of measures including, financial support from parent company (Strawberry Star (G) Pte), shortterm lending from third parties known to the Group, and robust cash management controls.

Credit Risk

To protect the Group from suffering a loss as a result of its debtors not being able to make payment, credit is only extended to debtors that have adequate liquidity and a good credit rating.

COVID-19

During the period from the date of the Statement of Financial Position to the date that the Financial Statements were approved, the corona virus (COVID‐19) outbreak has caused extensive disruptions to businesses and economic activities. The uncertainties over the emergence and spread of COVID‐19 have caused market volatility on a global scale. The quantum of the future effect is difficult to determine and the Board keeps this under regular review.

Energy Crisis

Increase in energy costs has contributed to the overall inflationary environment that is shifting the fundamentals of the real estate industry as a whole. Given the service based income model for the group, the impact of energy crisis on the group’s expenses is minimal. The group is reducing its office footprints to mitigate the cost impact.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2021.

The principal activities of the group was that of the provision of Development Management Services for Residential and Mixed use real estate projects, advisory on identification and acquisition of properties for development or bulk acquisition, debt raising for real estate projects and advisory and consulting services to real estate funds, Marketing, Sales and CRM activities for residential and mixed use properties, marketing, letting and managing residential properties, Block management services and management of commercial office spaces and Ground rent collection on the freehold properties owned by the group.

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

UHY Hacker Young LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements 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 ;

•     prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

We have audited the financial statements of Strawberry Star Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 the parent company's affairs as at 31 December 2021 and of the group's 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.

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 Auditor's 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 UK, including the FRC’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.

Material uncertainty relating to going concern

In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made in note 1.3 to the financial statements concerning the group's ability to continue as a going concern. As discussed in note 1.3 the ultimate controlling party has provided assurance that he will continue to provide financial support to the Strawberry Star Group for the foreseeable future. If the group were unable to obtain this funding, it may be unable to continue trading. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Our opinion is not modified in respect of this matter.

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 statement is appropriate.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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 strategic report and the directors' report.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 auditor's 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.

Based on our understanding of the Group and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Group, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, enquiries of management and testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,546 (2020 - £0 profit).

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

Strawberry Star Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 701 Vauxhall Sky Gardens, 153 Wandsworth Road, London, SW8 2GB.

The group consists of Strawberry Star Group Limited and all of its subsidiaries as detailed in note 15.

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.

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

The financial statements have been prepared under the historical cost convention, 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.

In the parent company financial statements, the merger accounting method has been applied. The difference between the nominal value of the shares issued plus the fair value of any other consideration given, and the nominal value of the shares received in exchange has been shown as a movement on other reserves in the consolidated financial statements. Any existing balances on the share premium account or capital redemption reserve of the new subsidiary will be brought in by being shown as a movement on other reserves. These movements have been shown in the statement of changes in equity.

The consolidated financial statements incorporate those of Strawberry Star Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The subsidiaries in note 15 have all been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of the subsidiaries for the 12-month period from their acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

At the time of approving the financial statements, the directors have carefully considered the trading outlook for the coming year and expected cashflows and have a reasonable expectation that the group has access to adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In addition to the above, the ultimate controlling party and the parent company have provided assurance that they will continue to provide financial support to the group for the foreseeable future and will not seek repayment of their loan balances until the company is able to do so. If the group were unable to obtain this funding, it would be unable to continue trading and adjustments would have to be made to reduce the value of assets to their realisable amount and to provide for any further liabilities which might arise.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover for commissions receivable for property sales, property valuation services and amounts receivable for management and lettings of properties, present net of VAT. Turnover relating to commissions receivable is recognised in two stages, initially at the point of exchange of contract and subsequently on completion.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received 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.

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:

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 recognised in the profit and loss account.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Investment Property is not depreciated which is not in accordance with the Companies Act but necessary to show a true and fair view.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, and deposits held at call with banks.

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 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.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 deducting all of its liabilities.

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

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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 through 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.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the group’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.

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.

The directors review outstanding trade debtors at the year-end in order to identify any items that may not be recoverable. The directors also assess the expected level of credit notes to be issued against trade debtors in order to determine if any relate to year-end balances.

Following this review adequate provision is made for any amounts identified which would indicate an impairment in the trade debtors.

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

Their aggregate remuneration comprised:

Investment income includes the following:

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

Investment property comprises freehold land. The valuation of investment properties were made at 12 January 2022, by Strutt and Parker, who are RICS registered. This valuation has been used by the Santander bank to assess the valuation of the property before agreeing the loan.

On historical basis, these would have been included at original cost of £7,637,193 (2020:£7,637,193).

There is a fixed and floating charge over the freehold land and buildings of the company in relation to their loan obligations disclosed in the creditors: amounts falling due after more than one year note.

Details of the company's subsidiaries at 31 December 2021 are as follows:

All subsidiaries registered office address is Unit 701, Vauxhall Sky Gardens, 153 Wandsworth Road, London, England, SW8 2GB

There is a fixed and floating charge over the freehold land and buildings of the company in relation to their loan obligations disclosed in above.

There is a fixed and floating charge over the freehold land and buildings of the company in relation to

their loan obligations disclosed

Finance lease payments represent rentals payable by the company for motor vehicles. Leases include

purchase options at the end of the lease period, and mileage restrictions are placed on the use of the

assets.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above relates to prior revaluations of the investment property, acquired as part of the business combination.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

During the year, the management fee charged from KSD Holdings PTE Ltd, the ultimate parent company, to the Group was £300,000 (2020: £375,000). The amount owed at year end to KSD Holdings PTE Ltd was £78,695(2020: £85,213).

The management charge from Strawberry Star (G) PTE Ltd, the parent company of Strawberry Star Group Limited, to the Group was £102,000 (2020: £127,500) for the year. At the year end, the amounts due to Strawberry Star (G) PTE Ltd from the Group in the form of a loan was £3,904,968 (2020: £3,891,596) and the amounts due from the company was £Nil(2020: £2,134). The loan is interest free, unsecured and repayable on demand.

During the period, services were purchased to the value of £Nil (2020: £Nil) from Strawberry Star Letting & Sales PTE Ltd, who are a wholly owned subsidiary of KSD Holdings PTE Ltd. At the period end, the Group owed Strawberry Star Letting & Sales PTE Ltd of £Nil (2020: £352).

During the year, the Group purchased services to the value of £739,447 (2020: £742,100) from Milan Ventures (S) PTE Limited, a company which is 100% owned by Mrs Kavitha Santhosh and Mr Santhosh Gowda is also a director in Milan Ventures. The amount owed to Milan Ventures (S) PTE Ltd at the year end was £129,623 (2020: £1,044 debtor). The Group also took out a two short term loans during 2020 from Milan Ventures (S) PTE Limited, of which £Nil (2020: £216,653) was outstanding at the year end. Interest is charged at 12% and amounted to £1,118 (2020: £17,897) during the year.

During the year, the Group took out two short term loans from Mrs Kavitha Santhosh of which £Nil (2020: £400,000), was outstanding as at the year end. Interest is charged at 12% and amounted to £19,571 (2020: £22,241) during the year.

At the balance sheet date the Group was owed £Nil (2020: £8,346) by Mr S Gowda and £60 (2020: £4,915) by Mr S Sathish, who were directors of the Group.

Strawberry Star Group Limited is controlled by its parent company, Strawberry Star (G) PTE Ltd, a company registered in Singapore by virtue of its 100% shareholding in the company.

The ultimate parent company is KSD Holdings PTE Ltd, a company registered in Singapore by virtue of its 100% shareholding in Strawberry Star (G) Pte Ltd.

The directors regard KSD Holdings PTE Ltd, a company incorporated in the Singapore, as the largest group into which the company is consolidated.

Group financial statements are prepared by the ultimate parent company and a copy can be obtained

from KSD Holdings PTE. Ltd, 1 Raffles Place, #28-02, Singapore, 048616.

The ultimate controlling party is Mr S Gowda.

At the end of the year, the company owed Strawberry Star (G) PTE Ltd (the parent company), £3,874,596 (2020: £3,874,788).

On 7th April 2022, the existing loans from Secure Trust against freehold assets owned by the group was refinanced with a new loan from Santander UK PLC. The loan from Santander UK PLC is for £5,000,000 for 3 years. The loan is secured against the freehold assets owned by the group.

On 12th Oct 2022 the group entered into a Joint Venture agreement with Audley Construction group to acquire a site in Maidstone. The site acquisition was completed on 21st Nov 2022. Until now the business model of the group has been primarily centered on fee-based income. The focus is now shifting more towards building a stronger balance sheet. The acquisition is the first site in line with this strategy. The plan is to develop the site as a Build to Rent project.

On 23 Dec 2022, the parent company Strawberry Star G PTE Limited converted its loan to the group into equity by allotting 10 shares of £1 nominal value at a value of £350,000 per share including share premium.