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

REGISTERED NUMBER: 07694312 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

MONARCH KM LTD

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

R R Chhapwale

Mrs D Chhapwale

SECRETARY:

R R Chhapwale

REGISTERED OFFICE:

2 The Drive

Rickmansworth

Hertfordshire

WD3 4EB

REGISTERED NUMBER:

07694312 (England and Wales)

ACCOUNTANTS:

STGCA LLP t/a Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

The following reproduces the text of the report prepared for the directors 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 Directors 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 2021 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 Board of Directors of Monarch KM LTD, as a body, 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 Board of Directors of Monarch KM LTD, as a body, 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 Board of Directors, as a body, 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 profit 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.

STGCA LLP t/a Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

12 December 2021

FIXED ASSETS

Intangible assets

4

152,500

305,000

Tangible assets

5

2,685,180

2,628,887

2,837,680

2,933,887

CURRENT ASSETS

Debtors

6

51,000

189,261

Cash at bank and in hand

240,946

99,036

291,946

288,297

CREDITORS

Amounts falling due within one year

7

399,530

189,881

NET CURRENT (LIABILITIES)/ASSETS

(107,584

)

98,416

TOTAL ASSETS LESS CURRENT LIABILITIES

2,730,096

3,032,303

CREDITORS

Amounts falling due after more than one year

8

(1,852,647

)

(2,165,873

)

PROVISIONS FOR LIABILITIES

10

(114,232

)

(118,231

)

NET ASSETS

763,217

748,199

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Revaluation reserve

788,666

788,666

Retained earnings

(26,449

)

(41,467

)

SHAREHOLDERS' FUNDS

763,217

748,199

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Board of Directors and authorised for issue on 12 December 2021 and were signed on its behalf 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

Government grants

Grants provided by the government in respect of Covid-19 are recognised in the accounting period in which they are received, under accrual model.

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 47 (2020 - 47 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2020

and 31 March 2021

1,525,000

AMORTISATION

At 1 April 2020

1,220,000

Amortisation for year

152,500

At 31 March 2021

1,372,500

NET BOOK VALUE

At 31 March 2021

152,500

At 31 March 2020

305,000

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 April 2020

2,261,534

710,477

49,218

15,054

3,036,283

Additions

89,975

-

363

9,874

100,212

At 31 March 2021

2,351,509

710,477

49,581

24,928

3,136,495

DEPRECIATION

At 1 April 2020

39,698

321,364

37,572

8,762

407,396

Charge for year

5,908

29,673

3,003

5,335

43,919

At 31 March 2021

45,606

351,037

40,575

14,097

451,315

NET BOOK VALUE

At 31 March 2021

2,305,903

359,440

9,006

10,831

2,685,180

At 31 March 2020

2,221,836

389,113

11,646

6,292

2,628,887

Included in cost or valuation of land and buildings is freehold land of £ 1,681,304 (2020 - £ 1,681,304 ) which is not depreciated.

In the opinion of the director, the open market value of the freehold property at 31 March 2021 is not significantly different to that stated above.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

37,446

51,055

Amounts owed by connected companies

6,955

114,923

Other debtors

6,599

6,283

Accrued income

-

17,000

51,000

189,261

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

74,667

68,000

Other loans

-

9,595

Trade creditors

18,889

17,672

Social security and other taxes

19,047

20,621

Other creditors

9,552

30,000

Directors' current accounts

269,885

36,688

Accrued expenses

7,490

7,305

399,530

189,881

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 1-2 years

78,000

68,000

Bank loans - 2-5 years

1,774,647

1,823,364

Amounts owed to connected companies

-

274,509

1,852,647

2,165,873

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

1,927,314

1,959,364

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.

During the year, the company entered into a bounce bank loan agreement with Arbuthnot Bank.The loan term is 6 years. The interest rate is fixed at 2.5 per cent per annum. The loan is 100% guaranteed by HM Government and 12 months of interest paid by HM Government.

10.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

114,232

118,231

Deferred

tax

£

Balance at 1 April 2020

118,231

Movement for the year

(3,999

)

Balance at 31 March 2021

114,232

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1,000

Ordinary

1

1,000

1,000

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included within creditors amounts falling due within one year is a balance of £269,885 (2020: £36,688) due from Mr Rahul Chhapwale, a director of the company.

13.	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:

2021

2020

£

£

Debtors: Amount falling due withing one year

Monarch Care (Poulton) Limited

-

21,236

Southlands Court Care Home Limited

-

66,732

Monarch Care Ltd

6,955

26,955

6,955

114,923

Creditors - Amounts due after more than one year:

KM Healthcare Limited

-

274,508

-

274,508

Included in other loans, is a balance of £NIL (2020: £9,595) due from a close relation of the beneficial owner of the company.

During the year, the company paid management fees of £43,746 (2020: £40,301) to Monarch Care (Poulton) Ltd, a company in which the director has controlling interest.

14.	ULTIMATE CONTROLLING PARTY

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