Company Registration No. 02901280 (England and Wales)
VILLAGE GREEN CARE HOME LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
PAGES FOR FILING WITH REGISTRAR
VILLAGE GREEN CARE HOME LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
VILLAGE GREEN CARE HOME LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2022
31 October 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
79,747
Current assets
Stocks
-
1,000
Debtors
4
516,855
56,024
Cash at bank and in hand
508
7,381
517,363
64,405
Creditors: amounts falling due within one year
5
(1,950,068)
(2,039,813)
Net current liabilities
(1,432,705)
(1,975,408)
Total assets less current liabilities
(1,432,705)
(1,895,661)
Creditors: amounts falling due after more than one year
6
(29,180)
(38,428)
Net liabilities
(1,461,885)
(1,934,089)
Capital and reserves
Called up share capital
300
300
Profit and loss reserves
(1,462,185)
(1,934,389)
Total equity
(1,461,885)
(1,934,089)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 October 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on .........................
..............................
A Badiani
Director
Company Registration No. 02901280
VILLAGE GREEN CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
- 2 -
1
Accounting policies
Company information
Village Green Care Home Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The care home operated by the company was sold in trueNovember 2021. At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to meet any outstanding liabilities, on the basis it is financially supported by the director and other related parties. As the company ceased trading during the year, the financial statements have been prepared on a basis other than going concern. Notwithstanding this, there are no material changes in the presentation or carrying values of the assets and liabilities, and no further liabilities need to be provided for as a result of the company ceasing to trade.
1.3
Turnover
Turnover represents amounts receivable during the year in respect of care services provided.
Turnover is recognised when the company's contractual obligation is fulfilled, that is typically when the resident has received the care services from the company.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
Over the term of the lease
Fixtures, fittings & equipment
10 - 25% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
1.6
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks.
VILLAGE GREEN CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 3 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
VILLAGE GREEN CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 4 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to expense on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
Government grants
Government grants, which include the amounts received from the Coronavirus exceptional support and Bounce Back Loan Scheme that cover interest and fees payable to the lender, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.
Government grants, which include amounts received from local authority grants, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income in the period in which the grant becomes receivable.
2
Employees
The average monthly number of persons (including director) employed by the company during the year was:
2022
2021
Number
Number
Total
3
39
VILLAGE GREEN CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 5 -
3
Tangible fixed assets
Land and buildings leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 November 2021
2,860
506,970
509,830
Disposals
(2,860)
(506,970)
(509,830)
At 31 October 2022
Depreciation and impairment
At 1 November 2021
2,860
427,223
430,083
Depreciation charged in the year
3,594
3,594
Eliminated in respect of disposals
(2,860)
(430,817)
(433,677)
At 31 October 2022
Carrying amount
At 31 October 2022
At 31 October 2021
79,747
79,747
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
140
11,669
Other debtors
516,715
40,703
Prepayments and accrued income
3,652
516,855
56,024
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
9,623
10,000
Trade creditors
58,148
120,941
Taxation and social security
45,972
150,491
Other creditors
1,827,715
1,666,308
Accruals and deferred income
8,610
92,073
1,950,068
2,039,813
VILLAGE GREEN CARE HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
- 6 -
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans
29,180
38,428
The Bounce back loan is unsecured and 100% guaranteed by the government with a repayment holiday of 12 months till 03 August 2021. The loan is repayable by 60 instalments between September 2021 and August 2026. The interest rate on the loan is 2.50% per annum.
7
Related party transactions
At the balance sheet date, the director was owed £1,408,989 (2021: £1,272,711 ) by the company which is included in other creditors. During the period, transactions included £156,698 (2021: £18,740) funding from the director to the company and repayments of £20,420 (2021: £23,825).