Ariya Neuro Care (Residential) Limited Company accounts

ARIYA NEURO CARE (RESIDENTIAL) LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 12713702

Ariya Neuro Care (Residential) Limited

Financial Statements

30 September 2022

Ariya Neuro Care (Residential) Limited

Financial Statements

Year Ended 30 September 2022

Contents	Pages

Officers and professional advisers	1

Strategic report	2 to 3

Directors' report	4 to 5

Independent auditor's report to the members	6 to 9

Statement of income and retained earnings	10

Statement of financial position	11

Statement of cash flows	12

Notes to the financial statements	13 to 22

Ariya Neuro Care (Residential) Limited

Officers and Professional Advisers

The board of directors	Mr R P Constable
	Ms L E Fallon

Registered office	91-97 Saltergate,
	Chesterfield
	Derbyshire
	S40 1LA

Auditor	MCABA Limited t/a Mitchells
	Chartered Accountants & Statutory Auditor
	91-97 Saltergate
	Chesterfield
	Derbyshire
	S40 1LA

Ariya Neuro Care (Residential) Limited

Strategic Report

Year Ended 30 September 2022

The directors present their strategic report of the company for the year ended 30 September 2022. Review of the business The principal activity of the company during the year was the provision of residential and nursing care for residents with acute brain injury. Results and performance The directors are happy with the performance of the company throughout the year. Both homes operating during the year have received Outstanding gradings from the Care Quality Commission (CQC), which is testament to the work of all the staff across the business. Despite the reported pressures in the care sector the company continues to increase occupancy, fees and carry very few staff vacancies. The services are now fully occupied with a waiting list. Following the year end a further home has been opened due to the level of demand for the services provided. Key performance indicators Great emphasis is placed on the standards of care offered in the two homes, employee development and employee retention. This is emphasised by the Clifton Court home achieving an outstanding rating from the CQC, Ariya House also received Outstanding when inspected after the year end, and the company being awarded Platinum for Investors in People. Maintaining these standards is paramount to ensuring the long term success and viability of the business and hence are classed as Key performance Indicators. Performance measures such as staff absence, retention and development are regularly reviewed. It is our belief that maintaining these non financial standards directly influences financial performance. Industry standard financial Key performance Indicators are regularly reviewed in addition to the above with levels of occupancy, service user average weekly fee and wages to fees monitored on a weekly and monthly basis. Occupancy and average fee have continued to improve throughout the period and wages to fees compares favourably to industry benchmarks at 54% (2021: 52%). Principal risks and uncertainties The senior management team meet regularly to consider the risks that face the company and how established processes and controls are used to manage these risks. Key risks and uncertainties are outlined below: COVID-19 pandemic The directors and management acted promptly at the outset of the pandemic and have been proactive in ensuring working practices and strategy are aligned with the needs of the changing situation. As a result of work by management and directors the company has managed to increase occupancy and average fee throughout the pandemic. The situation is being closely monitored and systems continue to be in place to avoid and manage any outbreaks amongst staff and service users. Market risk The market is currently under pressure regarding costs and quality standards. The company regularly monitors quality standards in both homes and produces detailed monthly financial information which enables the management team to react quickly to any issues. Legislative and regulatory risk The homes are monitored and regulated by CQC. The directors are passionate regarding the care given in their homes and this has been reflected with the Outstanding ratings at the homes given by CQC. Residents are placed by health authorities. The company maintains excellent relations with health authorities with both homes being fully occupied with waiting lists. Labour and recruitment The environment for Labour and recruitment is challenging however the directors and company are passionate about developing a culture that helps their employees develop and flourish. This has been supported by the awarding of Platinum by Investors in People and is key to the fact the company has very few staff vacancies and no agency costs. Financial risks The company has outstanding bank loans. The company has an open relationship with the bank and provides quarterly and annual financial and operating information to them.

This report was approved by the board of directors on 27 June 2023 and signed on behalf of the board by:

Mr R P Constable

Director

Ariya Neuro Care (Residential) Limited

Directors' Report

Year Ended 30 September 2022

The directors present their report and the financial statements of the company for the year ended 30 September 2022 .

Directors

The directors who served the company during the year were as follows:

Mr R P Constable
Ms L E Fallon

Dividends

Particulars of recommended dividends are detailed in note 10 to the financial statements.

Future developments

The directors are keen to develop the business further with the development of a new home in Holmewood. The management team are excited to expand the service further and are looking to build on the results obtained in their two current trading homes at Rotherham and Barnsley.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 27 June 2023 and signed on behalf of the board by:

Mr R P Constable

Director

Ariya Neuro Care (Residential) Limited

Independent Auditor's Report to the Members of Ariya Neuro Care (Residential) Limited

Year Ended 30 September 2022

Opinion

We have audited the financial statements of Ariya Neuro Care (Residential) Limited (the 'company') for the year ended 30 September 2022 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 30 September 2022 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor’s report that includes my 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 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Auditor's responsibilities for detecting irregularities, including fraud The objectives of our audit are: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, UK corporate taxation laws, Health and Social Care Act 2012 and Care Quality Commission (Registration) Regulations 2009. - We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to relevant members of the management team. We corroborated our inquiries though our review and inquiry into legal fees incurred in the year. - We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying the controls management has in place to prevent and detect fraud and assessing the operation of these controls - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process - Identifying and testing journal entries, in particular any journal entries that were large or unusual in nature - Assessing the extent of compliance with the relevant laws and regulations governing the company and the sector it operates within. This included a review of any potential breaches during and since the year end; and - Challenging assumptions and judgements made by management in its significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 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 an auditor's report 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.

Tony Hornsby BA(Hons) BFP FCA

(Senior Statutory Auditor)

For and on behalf of

MCABA Limited t/a Mitchells

Chartered Accountants & Statutory Auditor

91-97 Saltergate

Chesterfield

Derbyshire

S40 1LA

27 June 2023

Ariya Neuro Care (Residential) Limited

Statement of Income and Retained Earnings

Year Ended 30 September 2022

			Period from
		Year to	2 Jul 20 to
		30 Sep 22	30 Sep 21
Note		£	£
Turnover	4	2,436,491	2,274,646

Cost of sales	1,491,983	1,361,013
	------------	------------
Gross Profit	944,508	913,633

Administrative expenses		284,959	300,710
Other operating income	5	69,805	77,573
		---------	---------
Operating Profit	6	729,354	690,496

Interest payable and similar expenses	8	121,687	83,011
		---------	---------
Profit Before Taxation		607,667	607,485

Tax on profit	9	155,639	51,293
		---------	---------
Profit for the Financial Year and Total Comprehensive Income		452,028	556,192
		---------	---------

Dividends paid and payable	10	( 95,970)	( 24,600)

Retained Earnings at the Start of the Year	531,592	–
	---------	---------
Retained Earnings at the End of the Year	887,650	531,592
	---------	---------

All the activities of the company are from continuing operations.

Ariya Neuro Care (Residential) Limited

Statement of Financial Position

30 September 2022

	2022		2021
Note	£	£	£

Fixed Assets

Intangible assets	11	1	1
Tangible assets	12	6,136,729	5,389,224
		------------	------------
		6,136,730	5,389,225

Current Assets

Stocks	13	1,150	1,150
Debtors	14	208,866	263,516
Cash at bank and in hand		495,536	171,406
		---------	---------
		705,552	436,072

Creditors: amounts falling due within one year	15	3,328,051		3,288,650
		------------		------------
Net Current Liabilities			2,622,499	2,852,578
			------------	------------
Total Assets Less Current Liabilities			3,514,231	2,536,647

Creditors: amounts falling due after more than one year	16		2,562,889	2,004,955

Provisions	18	63,592	–
		------------	------------
Net Assets		887,750	531,692
		------------	------------

Capital and Reserves

Called up share capital	22	100	100
Profit and loss account	23	887,650	531,592
		---------	---------
Shareholders Funds		887,750	531,692
		---------	---------

These financial statements were approved by the board of directors and authorised for issue on 27 June 2023 , and are signed on behalf of the board by:

Mr R P Constable

Director

Company registration number: 12713702

Ariya Neuro Care (Residential) Limited

Statement of Cash Flows

Year Ended 30 September 2022

	2022	2021
	£	£

Cash Flows from Operating Activities

Profit for the financial year	452,028	556,192

Adjustments for:
Depreciation of tangible assets	9,622	5,043
Government grant income	( 69,805)	( 77,573)
Interest payable and similar expenses	121,687	83,011
Tax on profit	155,639	51,293

Changes in:
Stocks	–	( 1,150)
Trade and other debtors	20,950	( 229,816)
Trade and other creditors	85,398	182,380
	---------	---------
Cash generated from operations	775,519	569,380

Interest paid	( 121,687)	( 83,011)
Tax paid	( 84,993)	–
	---------	---------
Net cash from operating activities	568,839	486,369
	---------	---------

Cash Flows from Investing Activities

Purchase of tangible assets	( 757,127)	( 5,394,267)
Purchase of intangible assets	–	( 1)
	---------	------------
Net cash used in investing activities	( 757,127)	( 5,394,268)
	---------	------------

Cash Flows from Financing Activities

Proceeds from issue of ordinary shares	–	100
Proceeds from borrowings	753,108	2,079,175
Repayments of borrowings	( 251,819)	–
Increase/(decrease) in directors loan account	( 94,995)	2,763,049
Increase/(decrease) in related party balances	132,289	184,008
Government grant income	69,805	77,573
Dividends paid	( 95,970)	( 24,600)
	---------	------------
Net cash from financing activities	512,418	5,079,305
	---------	------------

Net Increase in Cash and Cash Equivalents	324,130	171,406
Cash and Cash Equivalents at Beginning of Year	171,406	–
	---------	---------
Cash and Cash Equivalents at End of Year	495,536	171,406
	---------	---------

Ariya Neuro Care (Residential) Limited

Notes to the Financial Statements

Year Ended 30 September 2022

(continued)

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 91-97 Saltergate, Chesterfield, Derbyshire, S40 1LA. The company's places of business are Ariya House - 70 Vernon Road, Worsbrough, Barnsley, S70 5BE; Clifton Court - 60 Doncaster Gate, Rotherham, S65 1DH and; Elizabeth House - Feld Lane, Holmewood, Chesterfield, S42 5GR.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The directors and management have been proactive in ensuring working practices and strategy are aligned with the needs of the changing situation throughout the COVID-19 pandemic. The situation is being closely monitored and systems continue to be in place to avoid and manage any outbreaks amongst staff and service users.

Judgements and key sources of estimation uncertainty

In the process of applying the company's accounting policies, the directors are required to make certain estimates, judgements and assumptions that they believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances and the impact of COVID-19. Actual results may differ from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The estimate and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life and residual values Tangible assets The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness. There is no charge in respect of depreciation on freehold buildings for the period. In determining the residual value of freehold buildings, the directors have considered the amount they would currently obtain from disposal of the asset if the asset were already of the age and condition expected at the end of its useful life, having regard to the factors mentioned above. As a result, the directors estimate any depreciation charge to be immaterial and as such the depreciation charge is nil for the period. Impairment of fixed assets The company reviews all categories of fixed assets annually for indicators of impairment and performs an impairment review considering any such indicators identified. Judgements are required to make an assessment as to whether there is an indication of impairment. At the period end the directors feel the carrying value of the fixed assets is not materially different to its fair value. Recoverability of trade debtors The directors make provisions for doubtful debts based on an assessment of the recoverability of trade debtors. Provisions are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. This methodology is applied on a customer by customer basis. Leases Determining whether leases entered into by the company as a lessee are operating or finance leases requires judgement. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee based on the evaluation of the terms and conditions of the arrangements on a lease by lease basis.

Revenue recognition

The turnover shown in the profit and loss account represents amounts received from providing specialist care for individuals with acquired brain injuries. The turnover in the accounts reflects fees according to the period of care given.

Taxation

Current tax represents the amount of tax payable of receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance

Motor vehicles - 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at cost.

Government grants

Government and local authority grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model.

Financial instruments

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising fro impairment are recognised in the profit and loss account in other administrative expenses.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

4. Turnover

Turnover arises from:

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Resident fees	2,436,491	2,274,646
	------------	------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Government grant income	69,805	77,573
	--------	--------

6. Operating profit

Operating profit or loss is stated after charging/crediting:

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Depreciation of tangible assets	9,622	5,043
Impairment of trade debtors	(1,042)	49,642
	-------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2022	2021
	No.	No.
Management, care and support staff	72	61
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Wages and salaries	1,193,966	1,088,008
Social security costs	89,721	78,419
Other pension costs	21,175	18,919
	------------	------------
	1,304,862	1,185,346
	------------	------------

8. Interest payable and similar expenses

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Interest on banks loans and overdrafts	95,129	83,011
Other interest payable and similar charges	26,558	–
	---------	--------
	121,687	83,011
	---------	--------

9. Tax on profit

Major components of tax expense

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£

Current tax:

UK current tax expense	58,770	84,993
Adjustments in respect of prior periods	( 423)	–
	--------	--------
Total current tax	58,347	84,993
	--------	--------

Deferred tax:

Origination and reversal of timing differences	97,292	( 33,700)
	---------	--------
Tax on profit	155,639	51,293
	---------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2021: lower than) the standard rate of corporation tax in the UK of 19 % (2021: 19 %).

		Period from
	Year to	2 Jul 20 to
	30 Sep 22	30 Sep 21
	£	£
Profit on ordinary activities before taxation	607,667	607,485
	---------	---------
Profit on ordinary activities by rate of tax	115,457	115,422
Adjustment to tax charge in respect of prior periods	( 423)	–
Effect of expenses not deductible for tax purposes	–	1,457
Effect of capital allowances and depreciation	( 56,687)	( 31,886)
Deferred tax movement	97,292	( 33,700)
	---------	---------
Tax on profit	155,639	51,293
	---------	---------

10. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2022	2021
	£	£
Dividends on equity shares	95,970	24,600
	--------	--------

11. Intangible assets

	Goodwill
	£
Cost
At 1 October 2021 and 30 September 2022	1
	----
Amortisation
At 1 October 2021 and 30 September 2022	–
	----
Carrying amount
At 30 September 2022	1
	----
At 30 September 2021	1
	----

12. Tangible assets

	Freehold property	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 October 2021	5,360,147	24,468	–	9,652	5,394,267
Additions	731,468	13,652	9,360	2,647	757,127
	------------	--------	-------	--------	------------
At 30 September 2022	6,091,615	38,120	9,360	12,299	6,151,394
	------------	--------	-------	--------	------------
Depreciation
At 1 October 2021	–	3,625	–	1,418	5,043
Charge for the year	–	7,258	–	2,364	9,622
	------------	--------	-------	--------	------------
At 30 September 2022	–	10,883	–	3,782	14,665
	------------	--------	-------	--------	------------
Carrying amount
At 30 September 2022	6,091,615	27,237	9,360	8,517	6,136,729
	------------	--------	-------	--------	------------
At 30 September 2021	5,360,147	20,843	–	8,234	5,389,224
	------------	--------	-------	--------	------------

13. Stocks

	2022	2021
	£	£
Consumables	1,150	1,150
	-------	-------

14. Debtors

	2022	2021
	£	£
Trade debtors	113,058	157,306
Deferred tax asset	–	33,700
Prepayments and accrued income	93,403	70,345
Other debtors	2,405	2,165
	---------	---------
	208,866	263,516
	---------	---------

15. Creditors: amounts falling due within one year

	2022	2021
	£	£
Bank loans	112,570	74,220
Trade creditors	14,336	22,467
Accruals and deferred income	133,774	137,154
Corporation tax	58,347	84,993
Social security and other taxes	21,151	18,616
Director loan accounts	2,668,054	2,763,049
Other creditors	319,819	188,151
	------------	------------
	3,328,051	3,288,650
	------------	------------

The following liabilities disclosed under creditors falling due within one year are secured by the company:

	2022	2021
	£	£
Bank loans	112,570	74,220

16. Creditors: amounts falling due after more than one year

	2022	2021
	£	£
Bank loans	2,562,889	2,004,955
	------------	------------

Included within creditors: amounts falling due after more than one year is an amount of £1,825,859 (2021: £1,686,342) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

The company currently pays an interest rate of 3.35% pa over the Bank of England bank rate, with a repayment profile of 20 years.

The following liabilities disclosed under creditors falling due after more than one year are secured by the company:

	2022	2021
	£	£
Bank loans	2,562,889	2,004,955

17. Secured liabilities

There is a legal charge and debenture over the property and assets held by the company.

18. Provisions

	Deferred tax (note 19)
	£
At 1 October 2021	–
Additions	63,592
	--------
At 30 September 2022	63,592
	--------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2022	2021
	£	£
Included in debtors (note 14)	–	33,700
Included in provisions (note 18)	( 63,592)	–
	------------	--------
	( 63,592)	33,700
	------------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2022	2021
	£	£
Accelerated capital allowances	63,592	( 33,700)
	--------	--------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 21,175 (2021: £ 18,919 ).

21. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2022	2021
	£	£

Recognised in other operating income:

Government grants recognised directly in income	69,805	77,573
	------------	--------

22. Called up share capital

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary A shares of £ 1 each	50	50	50	50
Ordinary B shares of £ 1 each	50	50	50	50
	------------	------------	----	----
	100	100	100	100
	------------	------------	----	----

23. Reserves

Called up share capital - this represents the nominal value of the shares that have been issued. Profit and loss account - this reserve records retained earnings and accumulated losses.

24. Analysis of changes in net debt

	At 1 Oct 2021	Cash flows	At 30 Sep 2022
	£	£	£
Cash at bank and in hand	171,406	324,130	495,536
Debt due within one year	(2,837,269)	56,645	(2,780,624)
Debt due after one year	(2,004,955)	(557,934)	(2,562,889)
	------------	---------	------------
	( 4,670,818)	( 177,159)	( 4,847,977)
	------------	---------	------------

Ariya Neuro Care (Residential) Limited

Notes to the Financial Statements (continued)

Year Ended 30 September 2022

25. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2022	2021
	£	£
Not later than 1 year	2,368	2,368
Later than 1 year and not later than 5 years	–	2,368
	------------	-------
	2,368	4,736
	------------	-------

26. Related party transactions

During the period the company received loans from related parties. The outstanding balance due to related parties at the balance sheet date is as follows:

	2022	2021
	£	£
Amounts owed to other related parties	316,297	184,008

Outstanding balances are unsecured, interest free and payable on demand.