Cedar Care Developments Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11025231 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 July 2020

for

Cedar Care Developments Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTOR:

A M Desai

REGISTERED OFFICE:

Mortimer House

Clifton Down Road

Bristol

BS8 4AE

REGISTERED NUMBER:

11025231 (England and Wales)

AUDITORS:

Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

The director presents his strategic report for the year ended 31 July 2020.

REVIEW OF BUSINESS

The principal activity of the company was that of a construction company.

The results for the year and the financial position at the year end were considered satisfactory by the directors.

Despite the current economic climate, the director expects to see continued growth in the company for the foreseeable future both organically and through further expansion of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider there to be no significant risks and uncertainties associated with the business.

The company manages the liquidity risk by ensuring the continuity of funding and flexibility through maintaining adequate bank reserves, with trade creditors liquidity risk managed by ensuring sufficient funds are available to meet amounts due for payment. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the customers' credit accounts, together with the daily monitoring of amounts outstanding.

ON BEHALF OF THE BOARD:

A M Desai - Director

29 April 2021

The director presents his report with the financial statements of the company for the year ended 31 July 2020.

DIVIDENDS

No dividends will be distributed for the year ended 31 July 2020.

DIRECTOR

A M Desai held office during the whole of the period from 1 August 2019 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Wormald & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A M Desai - Director

29 April 2021

Opinion

We have audited the financial statements of Cedar Care Developments Limited (the 'company') for the year ended 31 July 2020 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 July 2020 and of its profit 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have 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 Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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.

Neil Dando (Senior Statutory Auditor)

for and on behalf of Wormald & Partners

Chartered Accountants (ICAEW)

Redland House

157 Redland Road

Redland

Bristol

BS6 6YE

29 April 2021

TURNOVER

2,437,601

3,885,079

Cost of sales

2,269,847

3,721,012

GROSS PROFIT

167,754

164,067

Administrative expenses

132,402

110,603

OPERATING PROFIT and

PROFIT BEFORE TAXATION

35,352

53,464

Tax on profit

5

6,716

12,676

PROFIT FOR THE FINANCIAL YEAR

28,636

40,788

PROFIT FOR THE YEAR

28,636

40,788

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

28,636

40,788

FIXED ASSETS

Tangible assets

6

64,105

23,313

CURRENT ASSETS

Stocks

7

192,618

63,211

Debtors

8

189,417

533,965

Cash at bank

23,484

217,225

405,519

814,401

CREDITORS

Amounts falling due within one year

9

386,348

782,608

NET CURRENT ASSETS

19,171

31,793

TOTAL ASSETS LESS CURRENT LIABILITIES

83,276

55,106

PROVISIONS FOR LIABILITIES

10

3,964

4,430

NET ASSETS

79,312

50,676

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Retained earnings

12

78,312

49,676

SHAREHOLDERS' FUNDS

79,312

50,676

The financial statements were approved by the director and authorised for issue on 29 April 2021 and were signed by:

A M Desai - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2018

1,000

8,888

9,888

Changes in equity

Total comprehensive income

-

40,788

40,788

Balance at 31 July 2019

1,000

49,676

50,676

Changes in equity

Total comprehensive income

-

28,636

28,636

Balance at 31 July 2020

1,000

78,312

79,312

Cash flows from operating activities

Cash generated from operations

1

68,162

214,263

Net cash from operating activities

68,162

214,263

Cash flows from investing activities

Purchase of tangible fixed assets

(52,733

)

(7,000

)

Net cash from investing activities

(52,733

)

(7,000

)

Cash flows from financing activities

Loan from group undertaking

105,000

-

Repaid to group undertaking

(314,170

)

(21,703

)

Net cash from financing activities

(209,170

)

(21,703

)

(Decrease)/increase in cash and cash equivalents

(193,741

)

185,560

Cash and cash equivalents at beginning of year

2

217,225

31,665

Cash and cash equivalents at end of year

2

23,484

217,225

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

2020

2019

£

£

Profit before taxation

35,352

53,464

Depreciation charges

11,940

7,912

47,292

61,376

Increase in stocks

(129,407

)

(3,721

)

Decrease/(increase) in trade and other debtors

344,548

(135,858

)

(Decrease)/increase in trade and other creditors

(194,271

)

292,466

Cash generated from operations

68,162

214,263

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 July 2020

31.7.20

1.8.19

£

£

Cash and cash equivalents

23,484

217,225

Year ended 31 July 2019

31.7.19

1.8.18

£

£

Cash and cash equivalents

217,225

31,665

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.19

Cash flow

At 31.7.20

£

£

£

Net cash

Cash at bank

217,225

(193,741

)

23,484

217,225

(193,741

)

23,484

Total

217,225

(193,741

)

23,484

1.	STATUTORY INFORMATION

Cedar Care Developments Limited 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Motor vehicles

-

25% on reducing balance basis

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

2020

2019

£

£

Wages and salaries

77,083

62,409

Social security costs

8,002

6,403

Other pension costs

1,015

1,004

86,100

69,816

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

2020

2019

Construction

1

1

Administration

3

3

4

4

2020

2019

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Depreciation - owned assets

11,941

7,912

Auditors remuneration

4,500

4,500

Other taxation services

600

600

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

7,182

10,331

Deferred tax

(466

)

2,345

Tax on profit

6,716

12,676

6.	TANGIBLE FIXED ASSETS

Motor

vehicles

£

COST

At 1 August 2019

33,400

Additions

52,733

At 31 July 2020

86,133

DEPRECIATION

At 1 August 2019

10,087

Charge for year

11,941

At 31 July 2020

22,028

NET BOOK VALUE

At 31 July 2020

64,105

At 31 July 2019

23,313

7.

STOCKS

2020

2019

£

£

Stocks

192,618

63,211

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

128,418

403,774

Other debtors

49,842

124,212

Prepayments and accrued income

11,157

5,979

189,417

533,965

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

326,402

518,002

Amounts owed to group undertakings

36,735

245,906

Tax

17,513

10,331

Social security and other taxes

-

2,167

Other creditors

-

474

Accruals and deferred income

5,698

5,728

386,348

782,608

10.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

3,964

4,430

Deferred

tax

£

Balance at 1 August 2019

4,430

Accelerated capital allowances

(466

)

Balance at 31 July 2020

3,964

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1,000

Ordinary

£1

1,000

1,000

12.

RESERVES

Retained

earnings

£

At 1 August 2019

49,676

Profit for the year

28,636

At 31 July 2020

78,312

13.	ULTIMATE PARENT COMPANY

Cedar Care Homes Limited (incorporated in England ) is regarded by the director as being the company's ultimate parent company.

14.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

Sales include amounts invoiced to Barker Care Limited in the sum of £2,310,237 (2019 £3,839,908)

Included within trade debtors are amounts due from Barker Care Limited in the sum of £128,418 (2019 £401,614).

Barker Care Limited is a company in which A M Desai the director of the company is a director and shareholder.

All of the above transactions were conducted on an arm's length basis.

15.	ULTIMATE CONTROLLING PARTY

The controlling party is Cedar Care Homes Limited.

There is no ultimate controlling party of the company.