Far East Holdings Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 11533092 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

FOR

FAR EAST HOLDINGS LTD

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

K R Bhojwani

S Mohan

Miss S Nair

D Nair

SECRETARY:

REGISTERED OFFICE:

9 Ritz Parade

London

W5 3RA

REGISTERED NUMBER:

11533092 (England and Wales)

AUDITORS:

Butler & Co LLP

Chartered Accountants

& Statutory Auditor

Third Floor

126-134 Baker Street

London

W1U 6UE

The directors present their report with the financial statements of the company for the year ended 31 August 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of restaurateurs.

REVIEW OF BUSINESS

The company acquired a new lease at 38 Grosvenor Steet, Mayfair, London on 29th December 2021. The property is currently being refurbished and expected to opened as KOYN, a Japanese restaurant by June 2022.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors who have held office during the period from 1 September 2020 to the date of this report are as follows:

K R Bhojwani - appointed 3 September 2020

S Mohan - appointed 10 July 2021

A A Nageshkar - appointed 10 July 2021

Miss S Nair - appointed 10 July 2021

D Nair - appointed 3 September 2020

V M Shah - resigned 3 September 2020

A A Nageshkar ceased to be a director after 31 August 2021 but prior to the date of this report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Report of the Directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Butler & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

K R Bhojwani - Director

25 March 2022

Opinion

We have audited the financial statements of Far East Holdings Ltd (the 'company') for the year ended 31 August 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 2021 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.

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 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.

Conclusions relating to going concern

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

Emphasis of matter

Material uncertainty related to the entity's ability to operate as a going concern exists. However, the parent company has provided assurances that it would continue to support the entity as a going concern and meet its liabilities as they fall due as stated in Going concern policy (note 2) of the financial statements. The audit opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page two, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-Enquiries of management, concerning the company's policies and procedures relating to:

* Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance

* Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud.

- Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

-Reviewed journal entries to identify & understand the transactions.

-Evaluated accounting policies used and reasonableness of accounting estimates made.

-Tested capital expenditure and classification.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in.

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Sanjeev Phadke (Senior Statutory Auditor)

for and on behalf of Butler & Co LLP

Chartered Accountants

& Statutory Auditor

Third Floor

126-134 Baker Street

London

W1U 6UE

25 March 2022

TURNOVER

-

-

Cost of sales

132,161

-

GROSS LOSS

(132,161

)

-

Administrative expenses

102,390

600

(234,551

)

(600

)

Other operating income

6,563

-

OPERATING LOSS and

LOSS BEFORE TAXATION

(227,988

)

(600

)

Tax on loss

5

-

-

LOSS FOR THE FINANCIAL YEAR

(227,988

)

(600

)

LOSS FOR THE YEAR

(227,988

)

(600

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(227,988

)

(600

)

FIXED ASSETS

Intangible assets

6

8,717

6,408

Tangible assets

7

243,778

-

252,495

6,408

CURRENT ASSETS

Debtors

8

43,117

-

Cash at bank

85,324

-

128,441

-

CREDITORS

Amounts falling due within one year

9

315,424

7,908

NET CURRENT LIABILITIES

(186,983

)

(7,908

)

TOTAL ASSETS LESS CURRENT LIABILITIES

65,512

(1,500

)

CREDITORS

Amounts falling due after more than one year

10

295,000

-

NET LIABILITIES

(229,488

)

(1,500

)

CAPITAL AND RESERVES

Called up share capital

11

100

100

Retained earnings

12

(229,588

)

(1,600

)

SHAREHOLDERS' FUNDS

(229,488

)

(1,500

)

The financial statements were authorised for issue by the Board of Directors and authorised for issue on 25 March 2022 and were signed on its behalf by:

K R Bhojwani - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2019

-

(1,000

)

(1,000

)

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

(600

)

(600

)

Balance at 31 August 2020

100

(1,600

)

(1,500

)

Changes in equity

Total comprehensive income

-

(227,988

)

(227,988

)

Balance at 31 August 2021

100

(229,588

)

(229,488

)

Cash flows from operating activities

Cash generated from operations

1

341,398

(100

)

Net cash from operating activities

341,398

(100

)

Cash flows from investing activities

Purchase of intangible fixed assets

(3,105

)

-

Purchase of tangible fixed assets

(252,969

)

-

Net cash from investing activities

(256,074

)

-

Cash flows from financing activities

Share issue

-

100

Net cash from financing activities

-

100

Increase in cash and cash equivalents

85,324

-

Cash and cash equivalents at beginning of year

2

-

-

Cash and cash equivalents at end of year

2

85,324

-

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Loss before taxation

(227,988

)

(600

)

Depreciation charges

9,987

-

Government grants

(6,563

)

-

(224,564

)

(600

)

Increase in trade and other debtors

(43,117

)

-

Increase in trade and other creditors

609,079

500

Cash generated from operations

341,398

(100

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2021

31/8/21

1/9/20

£

£

Cash and cash equivalents

85,324

-

Year ended 31 August 2020

31/8/20

1/9/19

£

£

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/9/20

Cash flow

At 31/8/21

£

£

£

Net cash

Cash at bank

-

85,324

85,324

-

85,324

85,324

Total

-

85,324

85,324

1.	STATUTORY INFORMATION

Far East 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

Key sources of estimation uncertainty and judgements : The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of twenty years.

Tangible fixed assets

Fixed assets are recorded at cost. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

-

Term of lease

Plant & machinery

-

12.5% on cost

Fixture and fittings

-

12.5% on cost

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.

Going concern

The financial statements have been prepared on a going concern basis on the assumption that the company will continue to trade in the foreseeable future. The Company Directors having made appropriate enquiries consider that adequate resources exist for the company to continue in operational existence for the foreseeable future. The company has received confirmation from its parent of continued support to meet its liabilities as they fall due and has received similar confirmation from its ultimate parent company. Therefore, the directors are of the opinion that it is appropriate to adopt the going concern basis in preparing the financial statements.

There are uncertainties relating to COVID19 pandemic which may impact on recoverability of the investments and debtors. No provisions have been made in the financial statements.

Grants receivable

Coronavirus Job Retention Scheme grants and other government grants receivable during the year are recognised as other income.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

111,711

-

Social security costs

14,304

-

Other pension costs

550

-

126,565

-

The average number of employees during the year was as follows:

2021

2020

Management

4

6

Kitchen staff

4

-

8

6

2021

2020

£

£

Directors' remuneration

-

-

4.	OPERATING LOSS

The operating loss is stated after charging:

2021

2020

£

£

Depreciation - owned assets

9,191

-

Patents and licences amortisation

796

-

Auditors' remuneration

1,500

-

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 August 2021 nor for the year ended 31 August 2020.

6.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 September 2020

6,408

Additions

3,105

At 31 August 2021

9,513

AMORTISATION

Amortisation for year

796

At 31 August 2021

796

NET BOOK VALUE

At 31 August 2021

8,717

At 31 August 2020

6,408

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

Additions

237,380

589

15,000

252,969

At 31 August 2021

237,380

589

15,000

252,969

DEPRECIATION

Charge for year

9,130

25

36

9,191

At 31 August 2021

9,130

25

36

9,191

NET BOOK VALUE

At 31 August 2021

228,250

564

14,964

243,778

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other debtors

1,875

-

VAT

12,117

-

Prepayments

29,125

-

43,117

-

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

55,504

7,908

Amounts owed to group undertakings

232,003

-

Accrued expenses

27,917

-

315,424

7,908

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

295,000

-

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

£1

100

100

12.

RESERVES

Retained

earnings

£

At 1 September 2020

(1,600

)

Deficit for the year

(227,988

)

At 31 August 2021

(229,588

)

13.	CAPITAL COMMITMENTS

The company is in the process of acquiring, planning & developing a Leasehold property. Capital expenditure of £3m is being considered but not yet contracted or incurred as at year end.

14.	POST BALANCE SHEET EVENTS

The company acquired a leasehold premises on 29th December 2021 with the view to develop it as a Japanese Restaurant.

15.	ULTIMATE CONTROLLING PARTY

The company is a subsidiary of S Fiori Limited (England & Wales) which is a subsidiary of LSL Capital Limited (England & Wales).

The ultimate controlling party of the company is Leela Hospitality Pvt Ltd, a company incorporated in India. The financial statements are consolidated in the financial statements of Leela Hospitality Pvt Ltd, and is available from 703 Leela Business Park, Andheri - Kurla Road, Andheri (East), Mumbai - 400059, India.