Restaurant director banned over £75k hole in accounts

The boss of an award-winning Indian restaurant has been disqualified from acting as a director for seven years.

Abdul Malik, a director of both M & M Leisure (UK) Ltd and Seama Group Ltd, which traded as an Indian restaurant called ‘Raval Restaurant’ was published for ‘failing to maintain, preserve and/or deliver accounting records for the companies’.

An investigation by the Insolvency Service found that there was confusion as to which company was actually trading the restaurant and that over £75,000 could not be accounted for.

Malik has now been banned from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.

The restaurant, named ‘North East Restaurant of the Year’ at the British Curry Awards in 2013, was run by Malik but it was unclear under which company the business actually traded.

The investigation discovered the two companies only had one bank account between them and that over £50,000 of sales income was not banked. Furthermore, more than £25,000 of expenditure in cash and cheque payments could not be explained.

Both Seama Group Ltd and M & Leisure (UK) Ltd were placed into creditors’ voluntary liquidation on 12 September 2013 with deficiencies of £65,585 and £128,056 respectively.

Commenting on the disqualification, Robert Clarke, investigations group leader at the Insolvency Service, said: “Company Directors should be aware of their statutory obligations to maintain proper accounting records for their companies so that should they cease trading creditors are satisfied that all income generated can be properly accounted for.

“Where records are not sufficient to establish this, the Insolvency Service will investigate and pursue those directors who have failed in their responsibilities.”




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