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

REGISTERED NUMBER: 07694312 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

FOR

MONARCH KM LTD

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTOR:

R R Chhapwale

REGISTERED OFFICE:

2 The Drive

Rickmansworth

Hertfordshire

WD3 4EB

REGISTERED NUMBER:

07694312 (England and Wales)

ACCOUNTANTS:

Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

The following reproduces the text of the report prepared for the director 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 Director 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 2018 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 director of Monarch KM LTD 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 director of Monarch KM LTD 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 director 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.

Sterling

Chartered Accountants

505 Pinner Road

Harrow

Middlesex

HA2 6EH

7 December 2018

FIXED ASSETS

Intangible assets

4

610,000

762,500

Tangible assets

5

2,577,998

2,590,155

3,187,998

3,352,655

CURRENT ASSETS

Debtors

6

73,994

35,785

Cash at bank and in hand

66,113

90,537

140,107

126,322

CREDITORS

Amounts falling due within one year

7

301,431

262,189

NET CURRENT LIABILITIES

(161,324

)

(135,867

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,026,674

3,216,788

CREDITORS

Amounts falling due after more than one year

8

(2,069,555

)

(2,247,672

)

PROVISIONS FOR LIABILITIES

10

(122,135

)

(134,511

)

NET ASSETS

834,984

834,605

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Revaluation reserve

788,666

788,666

Retained earnings

45,318

44,939

SHAREHOLDERS' FUNDS

834,984

834,605

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 7 December 2018 and were signed 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

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 44 (2017 - 38 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2017

and 31 March 2018

1,525,000

AMORTISATION

At 1 April 2017

762,500

Amortisation for year

152,500

At 31 March 2018

915,000

NET BOOK VALUE

At 31 March 2018

610,000

At 31 March 2017

762,500

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 April 2017

2,118,882

696,561

32,873

3,930

2,852,246

Additions

22,000

-

13,334

3,950

39,284

At 31 March 2018

2,140,882

696,561

46,207

7,880

2,891,530

DEPRECIATION

At 1 April 2017

24,704

211,891

23,437

2,059

262,091

Charge for year

4,595

39,233

5,692

1,921

51,441

At 31 March 2018

29,299

251,124

29,129

3,980

313,532

NET BOOK VALUE

At 31 March 2018

2,111,583

445,437

17,078

3,900

2,577,998

At 31 March 2017

2,094,178

484,670

9,436

1,871

2,590,155

Included in cost or valuation of land and buildings is freehold land of £ 1,681,304 (2017 - £ 1,681,304 ) which is

not depreciated.

In the opinion of the director, the open market value of the freehold property at 31 March 2018 is not

significantly different to that stated above.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/18

31/3/17

£

£

Trade debtors

22,036

31,476

Amounts owed by connected companies

32,332

2,324

Other debtors

1,861

1,985

Prepayments

17,765

-

73,994

35,785

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/18

31/3/17

£

£

Bank loans and overdrafts

108,000

108,000

Trade creditors

31,692

28,491

Tax

1,543

8,830

Social security and other taxes

33,174

15,760

Other creditors

20,000

-

Wages control

3,349

3,844

Directors' current accounts

93,239

73,838

Accrued expenses

10,434

23,426

301,431

262,189

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/18

31/3/17

£

£

Bank loans - 1-2 years

1,411,011

1,600,451

Other loans - 1-2 years

373,691

-

Other loans - 2-5 years

-

330,000

Amounts owed to connected companies

284,853

317,221

2,069,555

2,247,672

Other creditors consists of loan from vendor of £330,000. The loan is for term of 7 years from May 2012 and the

interest is charged at rate of interest of 6.5%.

9.	SECURED DEBTS

The following secured debts are included within creditors:

31/3/18

31/3/17

£

£

Bank loans

1,519,011

1,708,451

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 July 2012 and the rate of interest is 3.25% above

the base rate.

10.	PROVISIONS FOR LIABILITIES

31/3/18

31/3/17

£

£

Deferred tax

122,135

134,511

Deferred tax

£

Balance at 1 April 2017

134,511

Movement for the year

(12,376

)

Balance at 31 March 2018

122,135

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/18

31/3/17

value:

£

£

1,000

Ordinary

1

1,000

1,000

12.	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:

2018

2017

£

£

Debtors: Amount falling due withing one year

Monarch Care (Poulton) Limited

1,826

1,826

Southlands Court Care Home Limited

7,348

498

Diva Care Ltd

2,073

-

Monarch Care Ltd

21,085

-

33,332

2,324

Creditors - Amounts due after more than one year:

KM Healthcare Limited

284,853

317,221

284,853

317,221

Included in creditor amounts falling due after more than one year, under other loans, is a balance of £43,691 due

from a close relation of the beneficial owner of the company.

During the year, the company paid management fees of £30,000 (2017: £36,000) to Monarch Care (Poulton) Ltd,

a company in which the director has controlling interest.

13.	ULTIMATE CONTROLLING PARTY

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

company.