Kingsman (Holdings) Limited - Limited company accounts 23.1

REGISTERED NUMBER: 02296342 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 SEPTEMBER 2022

FOR

KINGSMAN (HOLDINGS) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

S W Kingsman

A D Wood

SECRETARY:

G Danilewicz

REGISTERED OFFICE:

5 Beaufort House

Beaufort Court

Medway City Estate

Rochester

ME2 4FB

REGISTERED NUMBER:

02296342 (England and Wales)

AUDITORS:

RJP LLP

Chartered Certified Accountants &

Statutory Auditors

Ground Floor

Egerton House

68 Baker Street

Weybridge

Surrey

KT13 8AL

The directors present their strategic report for the year ended 29 September 2022.

REVIEW OF BUSINESS

As at 29 September 2022, the company owed £2,300,000 to its parent company. The parent company has confirmed that it will continue to financially support the company and group operations for the foreseeable future.

Results

The loss for the year, after taxation, amounts to £1,378,270 (2021 - profit of £32,494). The loss incurred for the year relates to the write off of an intercompany debtor and the increase in a provision against a group debt.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's activity is confined to transactions associated within subsidiaries. Consequently the company's exposure to risk is confined to that of the non recovery of the debtor balance owed by its subsidiaries, in the event that they suffer financial difficulty.

ON BEHALF OF THE BOARD:

A D Wood - Director

29 June 2023

The directors present their report with the financial statements of the company for the year ended 29 September 2022.

PRINCIPAL ACTIVITY

The principal activities of the company are that of a holding company and the rental of a freehold property. The company's activities are confined to transactions associated with its subsidiaries.

DIVIDENDS

No dividends will be distributed for the year ended 29 September 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 30 September 2021 to the date of this report.

S W Kingsman

A D Wood

FINANCIAL INSTRUMENTS

The directors continually monitor the business risks that the company is exposed to and where necessary introduce relevant systems to manage those risks. The company also have insurance cover where deemed appropriate to minimise operational risk.

The company's principal financial instruments comprise of bank balances, bank overdraft facility and loans to and from other group companies. The main purpose of these instruments is to raise funds to finance the company's operations. The main risks arising from the financial instruments are interest rate risk and liquidity risk.

Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial statements is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of the company's bank balances.

In respect of loans, these are comprised of interest free loans from related companies and to fellow subsidiary undertakings. The company manages the credit and cash flow risk via the regular monitoring of amounts outstanding to related companies and from group undertakings and the active participation in the management of the group undertakings by the directors.

The directors review and agree policies for managing each of the above risks. These policies remain unchanged from previous years.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the company since the year end.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director 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.

ON BEHALF OF THE BOARD:

A D Wood - Director

29 June 2023

Opinion

We have audited the financial statements of Kingsman (Holdings) Limited (the 'company') for the year ended 29 September 2022 which comprise the Statement of Comprehensive Income, 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 29 September 2022 and of its loss 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.

Material uncertainty relating to going concern

We draw attention to note 15 in the financial statements concerning the company’s ability to continue as a going concern. The company recorded a loss for the period of £1,378,270 (2021 - profit of £32,494) and, as at 29 September 2022, the company’s total liabilities exceeded its total assets by £2,803,305 (2021 - £1,425,035).

These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 this gives rise to a material misstatement in the financial statements themselves. 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 Directors 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 Directors 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 Directors.

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 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 Statement of Directors' Responsibilities set out on pages three and four, 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 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding and accumulated knowledge of the company and the sector in which it operates we considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the company accounting policies, UK accounting standards and UK Companies Act 2006. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper revenue recognition associated with period-end cut-off. Our audit procedures included, but were not limited to:

-

Agreement of the financial statements to underlying supporting documentation;

-

Challenging assumptions and judgements made by management in their significant accounting estimates;

-

Revenue period-end cut-off procedures;

-

Identifying and testing journal entries;

-

Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; and

-

Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion.

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.

Simon Paterson (Senior Statutory Auditor)

for and on behalf of RJP LLP

Chartered Certified Accountants &

Statutory Auditors

Ground Floor

Egerton House

68 Baker Street

Weybridge

Surrey

KT13 8AL

29 June 2023

TURNOVER

101,600

101,600

Administrative expenses

1,479,870

68,381

OPERATING (LOSS)/PROFIT and

(LOSS)/PROFIT BEFORE TAXATION

(1,378,270

)

33,219

Tax on (loss)/profit

4

-

725

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,378,270

)

32,494

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,378,270

)

32,494

FIXED ASSETS

Tangible assets

5

940,000

940,000

Investments

6

300

300

940,300

940,300

CURRENT ASSETS

Debtors

7

150,401

840,383

Cash at bank

100

100

150,501

840,483

CREDITORS

Amounts falling due within one year

8

2,300,099

2,300,099

NET CURRENT LIABILITIES

(2,149,598

)

(1,459,616

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,209,298

)

(519,316

)

PROVISIONS FOR LIABILITIES

10

1,594,007

905,719

NET LIABILITIES

(2,803,305

)

(1,425,035

)

CAPITAL AND RESERVES

Called up share capital

11

67,137

67,137

Capital redemption reserve

12

52,647

52,647

Retained earnings

12

(2,923,089

)

(1,544,819

)

SHAREHOLDERS' FUNDS

(2,803,305

)

(1,425,035

)

The financial statements were approved by the Board of Directors and authorised for issue on 29 June 2023 and were signed on its behalf by:

A D Wood - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 30 September 2020

67,137

(1,577,313

)

52,647

(1,457,529

)

Changes in equity

Total comprehensive income

-

32,494

-

32,494

Balance at 29 September 2021

67,137

(1,544,819

)

52,647

(1,425,035

)

Changes in equity

Total comprehensive income

-

(1,378,270

)

-

(1,378,270

)

Balance at 29 September 2022

67,137

(2,923,089

)

52,647

(2,803,305

)

1.	STATUTORY INFORMATION

Kingsman (Holdings) 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

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Report Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

The company is permitted to use the exemption as it is a member of a group where the parent of the group, DMA Group Limited, prepares publicly available consolidated financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of these financial statements requires estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and expectations of future events believed to be reasonable.

The directors consider that the following estimate and judgement is likely to have the most significant effect on the amounts recognised in the financial statements:

Valuation of freehold land and buildings

Valuation has been carried out on a regular basis by third parties. In between these valuations the directors have considered and confirmed whether or not the valuation is valid.

Turnover

Turnover represents amounts receivable in respect of rents due from group companies.

Tangible fixed assets

Tangible fixed assets under the revaluation model are stated at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The initial cost of the asset includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

The assets' residual values are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

Current and deferred taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 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.

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.

Investments in unlisted shares, which have been classified as fixed asset investments as the company intends to hold them on a continuing basis are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Debtors

Debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors

Creditors are measured at the transaction price. Other financial liabilities including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at amortised costs, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between as asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is a intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 29 September 2022 nor for the year ended 29 September 2021.

The average number of employees during the year was NIL (2021 - NIL).

29.9.22

29.9.21

£

£

Directors' remuneration

-

-

4.

TAXATION

Analysis of the tax charge

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

29.9.22

29.9.21

£

£

Deferred tax

-

725

Tax on (loss)/profit

-

725

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

29.9.22

29.9.21

£

£

(Loss)/profit before tax

(1,378,270

)

33,219

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

(261,871

)

6,312

Effects of:

Expenses not deductible for tax purposes

281,042

12,918

Group relief

(19,171

)

(19,165

)

Deferred tax movement not previously provided

-

660

Total tax charge

-

725

5.	TANGIBLE FIXED ASSETS

Freehold

property

£

COST OR VALUATION

At 30 September 2021

and 29 September 2022

940,000

NET BOOK VALUE

At 29 September 2022

940,000

At 29 September 2021

940,000

Cost or valuation at 29 September 2022 is represented by:

Freehold

property

£

Valuation in 2022

(84,362

)

Cost

1,024,362

940,000

The freehold land and buildings were valued on an open market existing use basis by the directors on 29 September 2022.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 30 September 2021

and 29 September 2022

300

NET BOOK VALUE

At 29 September 2022

300

At 29 September 2021

300

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Denne Joinery Limited

Registered office: Bramling House, Bramling, Canterbury, Kent, CT3 1NB

Nature of business: Joinery manufacturers

%

Class of shares:

holding

Ordinary

100.00

29.9.22

29.9.21

£

£

Aggregate capital and reserves

983,747

433,273

Profit for the year

550,474

9,567

DMA Mechanical & Air Conditioning Limited

Registered office: Same as the company's registered office.

Nature of business: Mechanical and air conditioning

%

Class of shares:

holding

Ordinary

100.00

29.9.22

29.9.21

£

£

Aggregate capital and reserves

(641,536

)

(643,153

)

Profit/(loss) for the year

1,617

(103,836

)

DMA Maintenance Limited

Registered office: Same as the company's registered office.

Nature of business: Maintenance engineers

%

Class of shares:

holding

Ordinary

100.00

29.9.22

29.9.21

£

£

Aggregate capital and reserves

3,294,671

3,058,792

Profit for the year

235,879

441,385

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.9.22

29.9.21

£

£

Amounts owed by group undertakings

150,107

840,089

Deferred tax asset

294

294

150,401

840,383

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

29.9.22

29.9.21

£

£

Amounts owed to group undertakings

2,300,099

2,300,099

9.	SECURED DEBTS

There are various charges in place over the land and property owned by the company in respect of different finance facilities in place within the DMA Group Ltd group.

A director has provided a personal guarantee, limited to £750,000, for all amounts due to the group's bankers.

10.	PROVISIONS FOR LIABILITIES

29.9.22

29.9.21

£

£

Other provisions

1,594,007

905,719

Deferred

Other

tax

provisions

£

£

Balance at 30 September 2021

(294

)

905,718

Charge to Statement of Comprehensive Income during year

-

688,289

Balance at 29 September 2022

(294

)

1,594,007

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

29.9.22

29.9.21

value:

£

£

6,713,700

Ordinary

1p

67,137

67,137

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 30 September 2021

(1,544,819

)

52,647

(1,492,172

)

Deficit for the year

(1,378,270

)

(1,378,270

)

At 29 September 2022

(2,923,089

)

52,647

(2,870,442

)

13.	ULTIMATE PARENT COMPANY

The company's immediate and ultimate parent undertaking is DMA Group Limited, which is registered in England and has the same registered office as that of Kingsman (Holdings) Limited. Copies of that company's group financial statements may be obtained from the Registrar of Companies.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is S W Kingsman.

15.	GOING CONCERN

At the balance sheet date the company has accumulated losses in excess of net assets. The company meets its financial requirements though a group banking facility and support from its parent company. The facility is part of a group arrangement, secured by a first charge on the company's freehold property and an inter-company composite cross guarantee, along with a personal guarantee given by a director.

On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustment that would result from the company not being a going concern.