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Registered Number:03362427
MAHARISHI EDUCATION CENTRE LIMITED
UNAUDITED
FINANCIAL STATEMENTS
PAGES FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2019
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MAHARISHI EDUCATION CENTRE LIMITED
REGISTERED NUMBER:03362427
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BALANCE SHEET
AS AT 31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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- 1 -
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MAHARISHI EDUCATION CENTRE LIMITED
REGISTERED NUMBER:03362427
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BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 October 2020.
The notes on pages 4 to 12 form part of these financial statements.
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MAHARISHI EDUCATION CENTRE LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
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At 1 January 2018 (restated)
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Comprehensive income for the year
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Shares issued during the year
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Total transactions with owners
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Comprehensive income for the year
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The notes on pages 4 to 12 form part of these financial statements.
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- 3 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Maharishi Education Centre Limited is a private company limited by shares and incorporated in England. Its registered office is Maharishi Peace Palace, Gardenia Close, Rendlesham, Woodbridge, IP12 2GX.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The financial statements have been drawn up on a going concern basis.
In accordance with government directives the business is operating under restrictions imposed on business activities and social distancing relating to the spread of coronavirus and courses have been temporarily moved on line. The impact of the coronavirus will have a very significant effect on the economy and will affect the business during 2020 and potentially beyond. The directors have prepared revised cashflow forecasts which anticipate that the company will be able to continue to trade and to meet it’s liabilities as they fall due. The directors therefore consider the business to be a going concern.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
For room let on long term leases, the income is recognised on a straight line basis over the period of the lease.
Where the company acts as the agent and not the principal for training courses, the facilitation fee only is recognised in turnover.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
- 4 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
The company has granted long term leases over rooms and the recipients receive rent from these rooms. Effectively the lease payments are loans and the rent paid is interest and this is how the amounts have been classified in the financial statements.
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
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Financial instruments (continued)
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out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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The average monthly number of employees, including the directors, during the year was as follows:
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- 7 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Charge for the year on owned assets
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Prepayments and accrued income
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- 8 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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The following liabilities were secured:
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Details of security provided:
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Charge over freehold land and buildings.
- 9 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
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Repayable other than by instalments
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Other loans includes an amount of £2,293,159 owed to Maharishi Foundation the parent charity.
- 10 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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In 2017 a loan due to a third party by Maharishi Foundation was repaid by being offset against an amount due to Maharishi Education Centre Limited. The transaction was not recorded in 2017 and a prior year adjustment has been made in the financial statements of both entities to correct the position in 2019.
2018 creditors have been reduced by £100,000 to £2,731,687.
Retained profits have been increased by £100,000 to (£1,362,660).
There is no effect on the results for 2018.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £660 (2018 - £935) . Contributions totalling £60 (2018 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.
- 11 -
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MAHARISHI EDUCATION CENTRE LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Related party transactions
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Included in other loans is an amount of £33,715 due to Mrs Parker. Mrs Parker's husband was a trusteee of Maharishi Foundation, the parent charity until his resignation on 31 January 2019. Included in deferred income is an amount of £38,981 due to Mr and Mrs Parker for a room lease in the Peace Palace. Interest of £4,157 was paid to Mr and Mrs Parker on this room lease.
The directors have taken advantage of the exemption from disclosing group transactions with it's parent undertaking Maharishi Foundation as consolidated financial statements are publicly available.
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Post balance sheet events
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Since the year end, the UK, and the whole world, has been struck by the Covid 19 pandemic. This does not have an effect on the financial position shown by these accounts and they continue to be drawn up on a going concern basis as explained in the accounting policies. It may have an effect on the results for 2020.
The Trustees of Maharishi Foundation have the controlling interest in the company holding £1,600,000 of the issued ordinary £1 shares.
Consolidated group financial statements are prepared by Maharishi Foundation, a charity registered in England no 270157. Its registered office is 6 Gardenia Close, Rendlesham, Woodbridge IP12 2GX.
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