H&H Care Home Investments Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06212325 (England and Wales)

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

FOR

H&H CARE HOME INVESTMENTS LIMITED

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Income Statement

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTOR:

B C Sodha

REGISTERED OFFICE:

3rd Floor Westbury House

23-25 Bridge Street

Pinner

Middlesex

HA5 3HR

REGISTERED NUMBER:

06212325 (England and Wales)

AUDITORS:

Accumen Business Consultancy Limited

Coventry University

Technology Park

Puma Way

Coventry

CV1 2TT

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

DIRECTOR

B C Sodha 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 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;

-	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, Accumen Business Consultancy Limited, 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:

B C Sodha - Director

26 July 2021

Opinion

We have audited the financial statements of H&H Care Home Investments Limited (the 'company') for the year ended 31 July 2020 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and 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 the provisions available for small entities, in the circumstances set out in note fourteen to the financial statements, 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 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Director 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 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; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page two, 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.

T Saran (Senior Statutory Auditor)

for and on behalf of Accumen Business Consultancy Limited

Coventry University

Technology Park

Puma Way

Coventry

CV1 2TT

26 July 2021

TURNOVER

365,541

365,541

Administrative expenses

9,735

62,191

OPERATING PROFIT

355,806

303,350

Interest payable and similar expenses

138,117

83,596

PROFIT BEFORE TAXATION

217,689

219,754

Tax on profit

41,456

41,848

PROFIT FOR THE FINANCIAL YEAR

176,233

177,906

FIXED ASSETS

Tangible assets

7

7,130,000

7,130,000

CURRENT ASSETS

Debtors

8

2,135,991

1,958,573

Cash at bank

733

7,891

2,136,724

1,966,464

CREDITORS

Amounts falling due within one year

9

5,190,804

5,196,777

NET CURRENT LIABILITIES

(3,054,080

)

(3,230,313

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,075,920

3,899,687

PROVISIONS FOR LIABILITIES

10

273,453

273,453

NET ASSETS

3,802,467

3,626,234

CAPITAL AND RESERVES

Called up share capital

11

800,002

800,002

Other reserves

12

2,407,371

2,407,371

Retained earnings

12

595,094

418,861

SHAREHOLDERS' FUNDS

3,802,467

3,626,234

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 26 July 2021 and were signed by:

B C Sodha - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 August 2018

-

240,955

2,407,371

2,648,326

Changes in equity

Issue of share capital

800,002

-

-

800,002

Total comprehensive income

-

177,906

-

177,906

Balance at 31 July 2019

800,002

418,861

2,407,371

3,626,234

Changes in equity

Total comprehensive income

-

176,233

-

176,233

Balance at 31 July 2020

800,002

595,094

2,407,371

3,802,467

1.	STATUTORY INFORMATION

H&H Care Home Investments 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment property measured at fair value through the Income Statement.

Tangible fixed assets

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

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.

Revenue recognition

Turnover represents rental income receivable by the company under a lease agreement and is recognised on a straight line basis over the term of the lease.

Investment property

Investment property is stated at fair value. Any gains or loss arising from a change in fair value is recognised on the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the properties are sold.

Financial instruments

The company only enters into financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors, cash and cash equivalents, trade and other payables, and loans and borrowings.

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. The cash and cash equivalents are stated at their nominal values, as this approximates to amortised cost.

Other financial liabilities

Other financial liabilities are subsequently measured at amortised cost using the effective interest method.

Loans and borrowings

These are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost. Borrowing costs arising on bank borrowings are expensed as incurred within financial expense using the effective interest method.

Trade and other payables

Trade and other payables are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost.

Impairment of financial assets

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

No significant judgements have been made by management in preparing these financial statements.

The director has made the following key assumptions:

- The fair value estimation of the investment property is based on the latest independent valuation obtained, the state of the property market in the location where the property is situated and rental potential of the property.

- The carrying amount of balances receivable from group undertaking is determined after giving consideration to past experience of collecting payments and the financial position of the relevant group undertaking.

A different assessment of these considerations may result in different values being determined.

5.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2019 - NIL).

6.	AUDITORS' REMUNERATION

31.7.20

31.7.19

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

1,200

2,158

Total audit fees

1,200

2,158

7.	TANGIBLE FIXED ASSETS

Land and

buildings

£

COST

At 1 August 2019

and 31 July 2020

7,130,000

NET BOOK VALUE

At 31 July 2020

7,130,000

At 31 July 2019

7,130,000

8.

DEBTORS

31.7.20

31.7.19

£

£

Amounts falling due within one year:

Amounts owed by group undertakings

2,135,991

1,958,573

Other debtors

-

(1,958,573

)

2,135,991

-

Amounts falling due after more than one year:

Amounts owed by group undertakings

-

1,958,573

Aggregate amounts

2,135,991

1,958,573

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.20

31.7.19

£

£

Amounts owed to joint ventures

5,093,841

5,093,841

Tax

82,927

93,264

Accruals and deferred income

14,036

9,672

5,190,804

5,196,777

The company has provided a first legal charge as security on Westerfield Care Home, 30 High Calside, Paisley Scotland PA2 6BY, property owned by the company on a bank loan provided to H & H Care Home Limited, a fellow subsidiary company which is part of Handsale Limited group of companies.

10.	PROVISIONS FOR LIABILITIES

31.7.20

31.7.19

£

£

Deferred tax

273,453

273,453

Deferred

tax

£

Balance at 1 August 2019

273,453

Balance at 31 July 2020

273,453

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.7.20

31.7.19

value:

£

£

800,002

Ordinary shares

1

800,002

800,002

12.

RESERVES

Retained

Other

earnings

reserves

Totals

£

£

£

At 1 August 2019

418,861

2,407,371

2,826,232

Profit for the year

176,233

176,233

At 31 July 2020

595,094

2,407,371

3,002,465

Where there is a cumulative increase in the fair value of investment properties in excess of any previous impairment losses, this is included in other reserves and is non-distributable.

13.	RELATED PARTY DISCLOSURES

The company is a wholly owned subsidiary of Handsale Limited.

The company has given security to support the bank loan and overdraft facility for H & H Care Home Limited by granting a fixed charge on its freehold property and by a fixed and floating charge on its other assets and undertakings.

14.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

15.	ULTIMATE CONTROLLING PARTY

The controlling party is B C Sodha.

The ultimate controlling party is the director, Bharat Sodha and his family.

The ultimate parent company is Handsale Limited, a company incorporated in England & Wales.

The entity's place of business is 30 High, Calside Paisley, Scotland PA2 6BY.

Group accounts are prepared for Handsale Limited and are available from the registered office at -

3rd Floor Westbury House

23-25 Bridge Street

Pinner

Middlesex

England

HA5 3HR