KPS CARE LIMITED - Limited company accounts 18.2

REGISTERED NUMBER: 10722985 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 12 APRIL 2017 TO 31 JULY 2018

FOR

KPS CARE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

N B Suresparan

Mrs V Suresparan

P Ketheeswaran

Ms S Seevarajah

REGISTERED OFFICE:

1st Floor, 44-50 The Broadway

Southall

Middlesex

UB1 1QB

REGISTERED NUMBER:

10722985 (England and Wales)

AUDITORS:

Param & Company Ltd

1st Floor

44 - 50 The Broadway

Southall

Middlesex

UB1 1QB

The directors present their strategic report of the company and the group for the period 12 April 2017 to 31 July 2018.

REVIEW OF BUSINESS

The government and local authorities has started paying greater attention towards the adult Social Care costs and has

allowed a 2% increase on council tax which enables the council to increase fee levels. Fee increases of over 4% have

been announced by some of the councils we contract with for the year commencing April 2018.Government has

allocated additional money to the local councils from the better care funds.

The cost for provision of care has continued to rise with minimum wage legislation and extra regulatory requirements,

and the need to attract and retain quality staff at all levels. Nursing shortage is acute nationally and has a bearing on

wage costs. The group policy has been to continually invest in the fabric of the building, purchase new equipment and

invest in staff training to improve standards of care.

The directors are very pleased with the progress that the group has made this year. All of the care homes run by the

group are operating at near maximum capacity, with an average occupancy rate of 95% (2017 85%).

Other Key performance indicators measured by the group include the wages to turnover rate, which is 56% (2017

:56%),and the Gross Profit Margin, which is 38% (2017 : 38%).

Food costs

The third largest cost for care home operators is the food bill, which consumes 3.6% of income. In comparison to last

year's reporting period food cost per resident increased from 3.57 per day to 3.90 per day, which is a significant 9.4%

annual increase and represent the highest annual percentage increase per bed when compared with other operational

costs.

Despite the challenges the group has performed well.

STRATEGY

The board will continue to keep costs under control and develop existing income streams. New opportunities will

continue to be sought where these will make a return for the group.

PRINCIPAL RISKS AND UNCERTAINTIES

Despite funding increases, and increase in the elderly population the sector faces financial strains and is also faced with

a constant barrage of regulatory charges.

The majority of placements are from local councils which makes them a bulk purchaser of our services and therefore

weakens our position with fee negotiations. This is balanced by an ever greater demand for beds and the pressure on the

councils to vacate hospital beds increasingly, nursing homes are looking after very heavily dependent residents or

residents who require short term care and this increases the risk of accidents and potential claims.

KPS Care Ltd, like all businesses, faces a number of operating risks and uncertainties. The most fundamental issues

faced by the group are:

- meeting bank covenants;

- maximising occupancy levels;

- complying with the stringent regulations of the Care Quality Commission under which Care Homes operate;

- achieving quality standards; and

- attracting and retaining high quality qualified and other staff.

CONCLUSION

KPS Care Ltd and its subsidiaries are considered to have sufficient financial resources, as a consequence the directors

believe that the group is well placed to manage its business risks successfully despite the current uncertain economic

outlook.

ON BEHALF OF THE BOARD:

N B Suresparan - Director

11 January 2019

The directors present their report with the financial statements of the company and the group for the period

12 April 2017 to 31 July 2018.

INCORPORATION

The group was incorporated on 12 April 2017 .

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of Residential nursing care facilities.

DIVIDENDS

No dividends will be distributed for the period ended 31 July 2018.

DIRECTORS

The directors who have held office during the period from 12 April 2017 to the date of this report are as follows:

N B Suresparan - appointed 12 April 2017

Mrs V Suresparan - appointed 12 April 2017

P Ketheeswaran - appointed 12 April 2017

Ms S Seevarajah - appointed 12 April 2017

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

POLITICAL DONATIONS AND EXPENDITURE

Donation paid of £2,900 is for Loandon Sree Ayyappa, 36 Massons Ave, Harrow HA3 5AR.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, Param & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N B Suresparan - Director

11 January 2019

Opinion

We have audited the financial statements of KPS CARE LIMITED (the 'parent company') and its subsidiaries (the

'group') for the period ended 31 July 2018 which comprise the Consolidated Income Statement, Consolidated Other

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, 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 group's and of the parent company affairs as at 31 July 2018 and of the group's profit for the period 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 group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

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 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.

Opinion 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 Group 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 Group 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 page 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 group's and the parent 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 group or the parent 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

S Paramaguru (Senior Statutory Auditor)

for and on behalf of Param & Company Ltd

1st Floor

44 - 50 The Broadway

Southall

Middlesex

UB1 1QB

11 January 2019

TURNOVER

3,336,975

Cost of sales

2,059,166

GROSS PROFIT

1,277,809

Administrative expenses

457,706

OPERATING PROFIT

4

820,103

Interest payable and similar expenses

5

77,472

PROFIT BEFORE TAXATION

742,631

Tax on profit

6

153,799

PROFIT FOR THE FINANCIAL PERIOD

588,832

Profit attributable to:

Owners of the parent

588,832

PROFIT FOR THE PERIOD

588,832

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

588,832

Total comprehensive income attributable to:

Owners of the parent

588,832

FIXED ASSETS

Tangible assets

8

4,632,490

Investments

9

-

4,632,490

CURRENT ASSETS

Stocks

10

7,178

Debtors

11

455,591

Cash at bank and in hand

761,614

1,224,383

CREDITORS

Amounts falling due within one year

12

1,316,649

NET CURRENT LIABILITIES

(92,266

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,540,224

CREDITORS

Amounts falling due after more than one year

13

(3,900,000

)

PROVISIONS FOR LIABILITIES

17

(51,292

)

NET ASSETS

588,932

CAPITAL AND RESERVES

Called up share capital

18

100

Retained earnings

19

588,832

SHAREHOLDERS' FUNDS

588,932

The financial statements were approved by the Board of Directors on 11 January 2019 and were signed on its behalf by:

N B Suresparan - Director

FIXED ASSETS

Tangible assets

8

-

Investments

9

6,202,539

6,202,539

CURRENT ASSETS

Cash at bank and in hand

1,649

CREDITORS

Amounts falling due within one year

12

1,809,776

NET CURRENT LIABILITIES

(1,808,127

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,394,412

CREDITORS

Amounts falling due after more than one year

13

3,900,000

NET ASSETS

494,412

CAPITAL AND RESERVES

Called up share capital

18

100

Retained earnings

494,312

SHAREHOLDERS' FUNDS

494,412

Company's profit for the financial year

494,312

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 11 January 2019 and were signed on its behalf by:

N B Suresparan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

588,832

588,832

Balance at 31 July 2018

100

588,832

588,932

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

100

-

100

Total comprehensive income

-

494,312

494,312

Balance at 31 July 2018

100

494,312

494,412

Cash flows from operating activities

Cash generated from operations

1

1,002,259

Interest paid

(77,472

)

Tax paid

1,670

Net cash from operating activities

926,457

Cash flows from investing activities

Purchase of tangible fixed assets

(4,590,496

)

Net cash from investing activities

(4,590,496

)

Cash flows from financing activities

New loans in year

3,900,000

Amount introduced by directors

545,000

Share issue

100

Amounts paid to associates

(19,447

)

Net cash from financing activities

4,425,653

Increase in cash and cash equivalents

761,614

Cash and cash equivalents at beginning of period

2

-

Cash and cash equivalents at end of period

2

761,614

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

£

Profit before taxation

742,631

Depreciation charges

84,359

Finance costs

77,472

904,462

Increase in stocks

(1,065

)

Increase in trade and other debtors

(20,569

)

Increase in trade and other creditors

119,431

Cash generated from operations

1,002,259

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Period ended 31 July 2018

31.7.18

12.4.17

£

£

Cash and cash equivalents

761,614

-

1.	STATUTORY INFORMATION

KPS CARE 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

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

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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 period 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme

are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

1,413,504

Social security costs

88,872

Other pension costs

11,486

1,513,862

The average number of employees during the period was as follows:

Administration

2

Care Staff

88

90

The average number of employees by undertakings that were proportionately consolidated during the period was

90 .

£

Directors' remuneration

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

£

Depreciation - owned assets

110,866

Auditors' remuneration

5,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Bank loan interest

77,472

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

£

Current tax:

UK corporation tax

125,027

Corporation tax under/(over) p

4,210

Total current tax

129,237

Deferred tax

24,562

Tax on profit

153,799

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

£

Profit before tax

742,631

Profit multiplied by the standard rate of corporation tax in the UK of 19%

141,100

Effects of:

Income not taxable for tax purposes

(5,036

)

Capital allowances in excess of depreciation

(11,037

)

Adjustments to tax charge in respect of previous periods

4,210

Deferred tax

24,562

Total tax charge

153,799

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not

presented as part of these financial statements.

8.	TANGIBLE FIXED ASSETS

Group

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

Additions

4,425,000

34,751

283,605

4,743,356

At 31 July 2018

4,425,000

34,751

283,605

4,743,356

DEPRECIATION

Charge for period

75,729

5,456

29,681

110,866

At 31 July 2018

75,729

5,456

29,681

110,866

NET BOOK VALUE

At 31 July 2018

4,349,271

29,295

253,924

4,632,490

9.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

Additions

6,202,539

At 31 July 2018

6,202,539

NET BOOK VALUE

At 31 July 2018

6,202,539

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

following:

Subsidiary

Esteem Care Ltd (Reg:03658581)

Registered office: 1st Floor, 44-50 The Broadway, Southall, England, UB1 1QB

Nature of business: Residential nursing care facilities

%

Class of shares:

holding

Ordinary shares

100.00

2018

£

Aggregate capital and reserves

5,610,062

Profit for the period

821,812

10.

STOCKS

Group

£

Finished goods

7,178

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

£

Trade debtors

269,732

Amounts owed by associates

152,398

Other debtors

19,925

Prepayments and accrued income

13,536

455,591