IRIS Accounts Production v23.1.5.20 SC341750 Board of Directors 1.8.22 31.7.23 31.7.23 the provision of care services. true false true true false false false true false Ordinary shares of £1 each 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureSC3417502022-07-31SC3417502023-07-31SC3417502022-08-012023-07-31SC3417502021-07-31SC3417502021-08-012022-07-31SC3417502022-07-31SC341750ns16:Scotland2022-08-012023-07-31SC341750ns15:PoundSterling2022-08-012023-07-31SC341750ns11:Director12022-08-012023-07-31SC341750ns11:PrivateLimitedCompanyLtd2022-08-012023-07-31SC341750ns11:FRS1022022-08-012023-07-31SC341750ns11:Audited2022-08-012023-07-31SC341750ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-08-012023-07-31SC341750ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-08-012023-07-31SC341750ns11:FullAccounts2022-08-012023-07-31SC34175012022-08-012023-07-31SC341750ns11:OrdinaryShareClass12022-08-012023-07-31SC341750ns11:Director22022-08-012023-07-31SC341750ns11:RegisteredOffice2022-08-012023-07-31SC341750ns6:CurrentFinancialInstruments2023-07-31SC341750ns6:CurrentFinancialInstruments2022-07-31SC341750ns6:ShareCapital2023-07-31SC341750ns6:ShareCapital2022-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2023-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2022-07-31SC341750ns6:ShareCapital2021-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2021-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2021-08-012022-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2022-08-012023-07-31SC34175012022-08-012023-07-31SC341750ns6:NetGoodwill2022-08-012023-07-31SC341750ns6:IntangibleAssetsOtherThanGoodwill2022-08-012023-07-31SC341750ns6:ReportableOperatingSegment12022-08-012023-07-31SC341750ns6:ReportableOperatingSegment12021-08-012022-07-31SC341750ns6:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-08-012023-07-31SC341750ns6:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2021-08-012022-07-31SC341750ns6:OwnedAssets2022-08-012023-07-31SC341750ns6:OwnedAssets2021-08-012022-07-31SC341750ns6:NetGoodwill2022-07-31SC341750ns6:NetGoodwill2023-07-31SC341750ns6:NetGoodwill2022-07-31SC341750ns6:LandBuildings2022-07-31SC341750ns6:FurnitureFittings2022-07-31SC341750ns6:LandBuildings2022-08-012023-07-31SC341750ns6:FurnitureFittings2022-08-012023-07-31SC341750ns6:LandBuildings2023-07-31SC341750ns6:FurnitureFittings2023-07-31SC341750ns6:LandBuildings2022-07-31SC341750ns6:FurnitureFittings2022-07-31SC341750ns6:WithinOneYearns6:CurrentFinancialInstruments2023-07-31SC341750ns6:WithinOneYearns6:CurrentFinancialInstruments2022-07-31SC341750ns6:CurrentFinancialInstruments2022-08-012023-07-31SC341750ns6:DeferredTaxation2022-07-31SC341750ns6:DeferredTaxation2023-07-31SC341750ns11:OrdinaryShareClass12023-07-31SC341750ns6:RetainedEarningsAccumulatedLosses2022-07-31SC34175012022-08-012023-07-31
REGISTERED NUMBER: SC341750 (Scotland)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

FOR

BARON HEALTHCARE (SALTCOATS) LIMITED

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 July 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


BARON HEALTHCARE (SALTCOATS) LIMITED

COMPANY INFORMATION
for the year ended 31 July 2023







DIRECTORS: B B Sodha
B C Sodha





REGISTERED OFFICE: Caledonia Care Home
7 Sidney Street
Saltcoats
Ayrshire
KA21 5DB





REGISTERED NUMBER: SC341750 (Scotland)





AUDITORS: Accumen Business Consultancy Limited
Coventry University
Technology Park
Puma Way
Coventry
CV1 2TT

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

STRATEGIC REPORT
for the year ended 31 July 2023


The company has been trading within the healthcare sector providing care home services.

Key performance indicators are turnover, gross profit margin and costs.

During the year, the company has continued to consolidate in different aspects of its main strategic objectives which includes to continue to increase profits.

The turnover of the company increased by 14.7% to £4,216,463 (2022 - £3,595,342). Due to an increase in weekly fees and overall occupancy.

The gross profit margin for the year increased to 23.4% (2022 - 19.6%) This was as a result of the above rise in turnover.

Operating profit went up to £279,732 (2022 - £4,751).

As at the year end, the company is in a net liability position of £210,868 (2022 - net liability position of £242,746).

The directors consider that despite the challenging trading circumstances, the results are reasonable and together with the reduction in trading competition, result in them to look forward to the future.

The main elements of the company's strategy are as follows:
(a) Manage the principal risks and uncertainties facing the business.
(b) Maintaining existing client relationship and develop new businesses by improving on the full range of services
to ensure future growth.
(c) Providing enhanced responsive services and seek new contracts through established contacts and marketing.

IMPACT OF THE CORONAVIRUS PANDEMIC ON THE COMPANY
The company has been very pro-active and taken the necessary measures to prevent cases of Covid-19 in all their care homes especially in providing personal protective equipment (PPE) to all their staff and ensuring the care homes are kept free of the virus as much as possible by the infection control measures undertaken and obtaining access to Covid-19 testing for all their staff and residents.

Where possible, cohorted units have been created to isolate those with Covid-19 symptoms and to create a safe and sustainable admissions process.

In our opinion there is no significant financial or other impact on the business due to the pandemic during the year ended 31 July 2023, although uncertainties exist post year end.


BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

STRATEGIC REPORT
for the year ended 31 July 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties of the company are summarised below. The board has reviewed and agreed policies for managing each of the risks.

Financial risk exposure

The company's financial instruments comprised of borrowing and cash that arise directly from its operation. The main purpose of these financial instruments was to fund the company's operations as well as to manage working capital, liquidity and invest surplus funds.

Interest rate risk

The company continues to finance its operations from bank loans. Accordingly, borrowings, up until repayment, are at variable interest rates which are subject to fluctuations in the base rates.

Liquidity risk

The company continuously monitors its liquid assets to ensure it has sufficient cash and cash equivalents to meet its operational requirements.

Credit risk

The company has no significant concertation of credit risk. The company has policies in place to ensure that sales are made to customers with an appropriate credit history.

Management of risks

The directors continue to assess the risks facing the company which are - The unforeseen economic and other conditions and the market in which the company operates. The risk of losing key customers is low due to continuous nurturing of relationships. The company has continued to develop and maintain contacts with the local authorities.

ON BEHALF OF THE BOARD:





B C Sodha - Director


24 April 2024

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

REPORT OF THE DIRECTORS
for the year ended 31 July 2023


The directors present their report with the financial statements of the company for the year ended 31 July 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 July 2023.

FUTURE DEVELOPMENTS
The directors continue to seek new opportunities of expanding the service of providing care services across the country, pursuing their management policies and they hope that there will be an effective response to the challenges of the coming year. We intend to continue to take advantage of any opportunities that may be appropriate to the business, to maximise the capital employed in the company.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

B B Sodha
B C Sodha

CREDITORS PAYMENT POLICY
The company agrees commercial terms with suppliers (including payment terms) and, if performance accords with their terms, to abide by the agreed payment arrangements.

GOING CONCERN
Having reviewed the company's performance, financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in the operational existence for the foreseeable future with the continued support of its parent company, Handsale Limited and its fellow subsidiary companies for at least the next 12 months from the date of approval of these financial statements. Thus they have adopted the going concern basis in preparing the financial statements for the period ended 31 July 2023.

EMPLOYEE INVOLVEMENT
The company continues to introduce, maintain or develop arrangements aimed at:

(a) providing employees systematically with information on matters of concern to them as employees

(b) consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests

(c) achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of the company.


BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

REPORT OF THE DIRECTORS
for the year ended 31 July 2023

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 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 company's auditors are aware of that information.

AUDITORS
The auditors, Accumen Business Consultancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





B C Sodha - Director


24 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BARON HEALTHCARE (SALTCOATS) LIMITED


Opinion
We have audited the financial statements of Baron Healthcare (Saltcoats) Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other 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 31 July 2023 and of its profit 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.

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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BARON HEALTHCARE (SALTCOATS) LIMITED


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 page five, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BARON HEALTHCARE (SALTCOATS) LIMITED


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;

- we assessed th extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the Accounting Policies were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BARON HEALTHCARE (SALTCOATS) LIMITED


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.




Tejinder Saran (Senior Statutory Auditor)
for and on behalf of Accumen Business Consultancy Limited
Coventry University
Technology Park
Puma Way
Coventry
CV1 2TT

24 April 2024

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

INCOME STATEMENT
for the year ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

TURNOVER 4 4,216,463 3,595,342

Cost of sales 3,230,473 2,889,605
GROSS PROFIT 985,990 705,737

Administrative expenses 706,258 700,986
OPERATING PROFIT 6 279,732 4,751


Interest payable and similar expenses 8 207,301 110,976
PROFIT/(LOSS) BEFORE TAXATION 72,431 (106,225 )

Tax on profit/(loss) 9 - (3,127 )
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 72,431 (103,098 )

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

OTHER COMPREHENSIVE INCOME
for the year ended 31 July 2023

31.7.23 31.7.22
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 72,431 (103,098 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

72,431

(103,098

)

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

BALANCE SHEET
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 5,985,774 6,107,159
5,985,774 6,107,159

CURRENT ASSETS
Debtors 12 1,531,503 1,089,565
Cash at bank and in hand 94,399 380,689
1,625,902 1,470,254
CREDITORS
Amounts falling due within one year 13 7,778,223 7,816,391
NET CURRENT LIABILITIES (6,152,321 ) (6,346,137 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(166,547

)

(238,978

)

PROVISIONS FOR LIABILITIES 15 3,768 3,768
NET LIABILITIES (170,315 ) (242,746 )

CAPITAL AND RESERVES
Called up share capital 16 1 1
Retained earnings 17 (170,316 ) (242,747 )
SHAREHOLDERS' FUNDS (170,315 ) (242,746 )

The financial statements were approved by the Board of Directors and authorised for issue on 24 April 2024 and were signed on its behalf by:





B C Sodha - Director


BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 August 2021 1 (139,649 ) (139,648 )

Changes in equity
Total comprehensive income - (103,098 ) (103,098 )
Balance at 31 July 2022 1 (242,747 ) (242,746 )

Changes in equity
Total comprehensive income - 72,431 72,431
Balance at 31 July 2023 1 (170,316 ) (170,315 )

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 July 2023


1. STATUTORY INFORMATION

Baron Healthcare (Saltcoats) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

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.

Going concern
The company is dependent on the financial support from the holding company and its fellow subsidiary companies who have confirmed their continued support for a period of at least twelve months from the date when the financial statements are authorised for issue. On this basis the directors' consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from withdrawal of the holding company's financial support.

Critical accounting judgements and key sources of estimation uncertainty
No significant judgements have been made by the directors in preparing these financial statements.

The directors have made key assumptions in determining the carrying amount of balances receivable from group undertakings after giving consideration to past experience of collecting payments and the financial position of the relevant group undertaking. A different assessment of these considerations may result in different values being determined.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil 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.

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


3. ACCOUNTING POLICIES - continued

Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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:

Land and building - 2% straight line
Fixtures and fittings - 15% reducing balance

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 debtors, cash and cash equivalents, trade and other payables, and loans and borrowings.

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value.

Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments.

Trade and other debtors
Trade and other debtors are initially recognised at fair value at their nominal amount less impairment losses if due in less than 12 months. Subsequent to initial recognition, trade and other receivables are valued at amortised cost less impairment losses.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. The cash and cash equivalents are stated at their nominal values, as this approximates to amortised cost.

Other financial liabilities
Other financial liabilities are subsequently measured at amortised cost using the effective interest method.

Loans and borrowings
These are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost. Borrowing costs arising on bank borrowings are expensed as incurred within financial expense using the effective interest method.

Trade and other payables
Trade and other payables are initially recognised at fair value, based upon the nominal amount outstanding. Subsequent to initial recognition, they are recorded at amortised cost.

Impairment of financial assets
For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows.

Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.


BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


3. ACCOUNTING POLICIES - continued
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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Revenue recognition
Revenue is recognised on residential occupancy of residents.

Revenue represents fees receivable on contracts for the provision of residential care. Revenue is recognised on a daily basis as the service is provided.

Employee benefits
Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


4. TURNOVER

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.7.23 31.7.22
£    £   
Residential care home income 4,216,463 3,595,342
4,216,463 3,595,342

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

5. EMPLOYEES AND DIRECTORS
31.7.23 31.7.22
£    £   
Wages and salaries 2,734,325 2,455,857
Social security costs 191,418 159,040
Other pension costs 43,298 35,995
2,969,041 2,650,892

The average number of employees during the year was as follows:
31.7.23 31.7.22

Employees 126 122

31.7.23 31.7.22
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging:

31.7.23 31.7.22
£    £   
Other operating leases 116,000 116,000
Depreciation - owned assets 142,407 141,170

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


7. AUDITORS' REMUNERATION
31.7.23 31.7.22
£    £   
Fees payable to the company's auditors for the audit of the company's financial
statements

1,200

1,200
Total audit fees 1,200 1,200

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.23 31.7.22
£    £   
Bank loan interest 207,230 110,473
Interest payable 71 503
207,301 110,976

9. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
31.7.23 31.7.22
£    £   
Deferred tax - (3,127 )
Tax on profit/(loss) - (3,127 )

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.7.23 31.7.22
£    £   
Profit/(loss) before tax 72,431 (106,225 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 0%)

13,762

-

Effects of:
Utilisation of tax losses (13,762 ) -
Deferred tax - (3,127 )
Total tax credit - (3,127 )

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 August 2022
and 31 July 2023 427,147
AMORTISATION
At 1 August 2022
and 31 July 2023 427,147
NET BOOK VALUE
At 31 July 2023 -
At 31 July 2022 -

11. TANGIBLE FIXED ASSETS
Fixtures
Freehold and
property fittings Totals
£    £    £   
COST
At 1 August 2022 7,470,109 297,524 7,767,633
Additions - 21,022 21,022
At 31 July 2023 7,470,109 318,546 7,788,655
DEPRECIATION
At 1 August 2022 1,435,309 225,165 1,660,474
Charge for year 128,400 14,007 142,407
At 31 July 2023 1,563,709 239,172 1,802,881
NET BOOK VALUE
At 31 July 2023 5,906,400 79,374 5,985,774
At 31 July 2022 6,034,800 72,359 6,107,159

The freehold property was valued on 10 January 2019 by a professional valuer, Andrew Surgenor BSc (Hons) MRICS of CBRE Limited.

The freehold property is included at market value provided by the valuer with any gains or losses being recognised in the Statement of Comprehensive Income and deferred taxation on these gains are charged where applicable.

The historical cost of the revalued property is £7,216,118.

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Trade debtors 277,797 247,386
Amounts owed by joint ventures 1,243,900 827,909
Other debtors 8,205 7,027
Prepayments 1,601 7,243
1,531,503 1,089,565

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Trade creditors 92,891 109,582
Amounts owed to group undertakings 7,359,485 7,359,485
Tax - 44,400
Social security and other taxes 40,733 32,698
Other creditors 100,869 94,505
Accruals and deferred income 184,245 175,721
7,778,223 7,816,391

The company has provided security in the form of a fixed legal charge on its property, Caledonia Care Home located at 7 Sidney Street, Saltcoats, Scotland. KA21 5DB, and a fixed and floating charge over its other assets and undertakings to the bank in respect of a bank loan and overdraft facility provided to H&H Care Homes Limited.

H&H Care Homes Limited is a fellow subsidiary company in the same group.

14. FINANCIAL INSTRUMENTS

Financial assets measured at fair value through profit an loss account

15. PROVISIONS FOR LIABILITIES
31.7.23 31.7.22
£    £   
Deferred tax 3,768 3,768

Deferred
tax
£   
Balance at 1 August 2022 3,768
Balance at 31 July 2023 3,768

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
1 Ordinary shares of £1 each 1 1 1

17. RESERVES
Retained
earnings
£   

At 1 August 2022 (242,747 )
Profit for the year 72,431
At 31 July 2023 (170,316 )

18. RELATED PARTY DISCLOSURES

The company is a wholly owned subsidiary of Handsale Limited.

The company has provided security in the form of a fixed legal charge on its freehold property and a fixed and floating charge over its other assets and undertakings dated 15th July 2019 to the bank in respect of a bank loan and overdraft facility granted to H & H Care Homes Limited.

The company has entered into an agreement to grant the trading operations of its residential and nursing care home to H & H Care Homes Limited. Under this agreement, all trading operations, assets and liabilities are for the benefit of Baron Healthcare (Saltcoats) Limited.

The company and H & H Care Homes Limited are fellow subsidiary undertakings of Handsale Limited which is controlled by the director B C Sodha and his family.

19. POST BALANCE SHEET EVENTS

Impact of the Coronavirus pandemic on the company

The company has been very pro-active and taken the necessary measures to prevent/reduce cases of Covid-19 in all of their care homes, especially in the provision of personal protective equipment (PPE) to all of their staff, robust infection control measures within each home, and testing for all staff and residents.

Where possible, cohorted units have been created to isolate those with Covid-19 symptoms and to create a safe and sustainable admissions process. In the Directors; opinion, there are no significant financial or other material adverse impact on the business due to the pandemic, although uncertainties do still exist.

BARON HEALTHCARE (SALTCOATS) LIMITED (REGISTERED NUMBER: SC341750)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 July 2023


20. ULTIMATE CONTROLLING PARTY

The controlling party is B C Sodha.

The ultimate controlling party is the director, B C Sodha and his family.

The ultimate parent company is Handsale Limited, a company incorporated in England and Wales.

The entity's place of business is Caledonia Care Home, 7 Sidney Street, Saltcoats Scotland. KA21 5DB.

Group accounts are prepared for Handsale Limited and are available from the office at -

3rd Floor, Westbury House, 23-25 Bridge Street, Pinner, Middlesex, England, HA5 3HR