Monarch KM LTD - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07694312 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

MONARCH KM LTD

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTOR:

R R Chhapwale

REGISTERED OFFICE:

2 The Drive

Rickmansworth

Hertfordshire

WD3 4EB

REGISTERED NUMBER:

07694312 (England and Wales)

ACCOUNTANTS:

Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

The following reproduces the text of the report prepared for the director in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Monarch KM LTD for the year ended 31 March 2019 which comprise the Income Statement,

Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from

information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of Monarch KM LTD in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Monarch KM LTD and state those matters that we have agreed to state to the director of Monarch KM LTD in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Monarch KM LTD and its director for our work or for this report.

It is your duty to ensure that Monarch KM LTD has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Monarch KM LTD. You consider that Monarch KM LTD is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Monarch KM LTD. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

22 December 2019

FIXED ASSETS

Intangible assets

4

457,500

610,000

Tangible assets

5

2,546,396

2,577,998

3,003,896

3,187,998

CURRENT ASSETS

Debtors

6

92,604

73,994

Cash at bank and in hand

232,582

66,113

325,186

140,107

CREDITORS

Amounts falling due within one year

7

251,338

301,431

NET CURRENT ASSETS/(LIABILITIES)

73,848

(161,324

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,077,744

3,026,674

CREDITORS

Amounts falling due after more than one year

8

(2,239,588

)

(2,069,555

)

PROVISIONS FOR LIABILITIES

10

(118,533

)

(122,135

)

NET ASSETS

719,623

834,984

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Revaluation reserve

788,666

788,666

Retained earnings

(70,043

)

45,318

SHAREHOLDERS' FUNDS

719,623

834,984

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 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 on 22 December 2019 and were signed by:

R R Chhapwale - Director

1.	STATUTORY INFORMATION

Monarch KM 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 the provisions of Section 1A "Small Entities"

of 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 as modified by the revaluation of certain assets.

Turnover

Turnover represents value of services provided to the balance sheet date and is recognised when the company

has a right to consideration.

Goodwill

Goodwill, on the acquisition of the business, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

1% on cost

Plant and machinery

-

15% on reducing balance and 5% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2018 - 44 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2018

and 31 March 2019

1,525,000

AMORTISATION

At 1 April 2018

915,000

Amortisation for year

152,500

At 31 March 2019

1,067,500

NET BOOK VALUE

At 31 March 2019

457,500

At 31 March 2018

610,000

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 April 2018

2,140,882

696,561

46,207

7,880

2,891,530

Additions

-

13,916

1,170

1,291

16,377

At 31 March 2019

2,140,882

710,477

47,377

9,171

2,907,907

DEPRECIATION

At 1 April 2018

29,299

251,124

29,129

3,980

313,532

Charge for year

4,596

37,108

4,562

1,713

47,979

At 31 March 2019

33,895

288,232

33,691

5,693

361,511

NET BOOK VALUE

At 31 March 2019

2,106,987

422,245

13,686

3,478

2,546,396

At 31 March 2018

2,111,583

445,437

17,078

3,900

2,577,998

Included in cost or valuation of land and buildings is freehold land of £ 1,681,304 (2018 - £ 1,681,304 ) which is

not depreciated.

In the opinion of the director, the open market value of the freehold property at 31 March 2019 is not

significantly different to that stated above.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Trade debtors

22,405

22,036

Amounts owed by connected companies

63,254

32,332

Other debtors

6,945

1,861

Prepayments

-

17,765

92,604

73,994

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Bank loans and overdrafts

68,000

108,000

Other loans

20,583

-

Trade creditors

34,594

31,692

Tax

-

1,543

Social security and other taxes

14,513

33,174

Other creditors

20,300

20,000

Wages control

-

3,349

Directors' current accounts

85,738

93,239

Accrued expenses

7,610

10,434

251,338

301,431

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/19

31/3/18

£

£

Bank loans - 1-2 years

68,000

1,411,011

Bank loans - 2-5 years

1,897,079

-

Other loans - 1-2 years

-

373,691

Amounts owed to connected companies

274,509

284,853

2,239,588

2,069,555

9.	SECURED DEBTS

The following secured debts are included within creditors:

31/3/19

31/3/18

£

£

Bank loans

2,033,079

1,519,011

The bank loan is secured by a way of charge over the assets of the company and by a way of the directors

personal guarantees. The loan is repayable over 5 years from December 2018 and the rate of interest is 3.35%

above the base rate.

10.	PROVISIONS FOR LIABILITIES

31/3/19

31/3/18

£

£

Deferred tax

118,533

122,135

Deferred tax

£

Balance at 1 April 2018

122,135

Movement for the year

(3,602

)

Balance at 31 March 2019

118,533

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/19

31/3/18

value:

£

£

1,000

Ordinary

1

1,000

1,000

12.	RELATED PARTY DISCLOSURES

At the balance sheet date, the following balances were owed to/by the company in respect of connected

companies where the director has a beneficial interest in. These amounts are interest free and repayable on

demand:

2019

2018

£

£

Debtors: Amount falling due withing one year

Monarch Care (Poulton) Limited

1,826

1,826

Southlands Court Care Home Limited

25,343

7,348

Diva Care Ltd

10,000

2,073

Monarch Care Ltd

26,082

21,085

63,254

33,332

Creditors - Amounts due after more than one year:

KM Healthcare Limited

274,508

284,853

274,508

284,853

Included in other loans, is a balance of £20,583 due from a close relation of the beneficial owner of the company.

During the year, the company paid management fees of £26,870 (2018: £30,000) to Monarch Care (Poulton) Ltd,

a company in which the director has controlling interest.

13.	ULTIMATE CONTROLLING PARTY

The directors control the company as they are responsible for the day to day decision making and running of the

company.