Registered number: 05770421
CORNELIA CARE HOMES LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2024
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CORNELIA CARE HOMES LTD
REGISTERED NUMBER: 05770421
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 March 2025.
The notes on pages 2 to 6 form part of these financial statements.
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CORNELIA CARE HOMES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 1 Countess Road, Amesbury, Salisbury, SP4 7DQ.
The principal activity of the company during the year under review was that of providing residential care.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
At balance sheet date the company had net current liabilities of £4,446,419 (2023: £1,939,753) and and net liabilities of £1,911,068 (2023: £1,939,753). These conditions indicate the existence of material uncertainty which may cast significant doubt on the Company's ability to continue to trade as a going concern. However, the financial statements are prepared on a going concern basis which assumes that the company will be able to continue to trade for the foreseeable future. The validity of this assumption depends on the continuous support available from the parent company.
On the basis of the assessment of company's financial position and support available from the parent company, the directors have a reasonable expectation that the company will be able to continue its trade for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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CORNELIA CARE HOMES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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CORNELIA CARE HOMES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Actual results may defer from these estimates. Revision to accounting estimates are recognised in the period in which the estimate is revised.
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The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL).
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The average monthly number of employees, including directors, during the year was 0 (2023 - 0).
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Freehold investment property
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Transfers between classes
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The 2024 valuations were made by the Directors, on an open market value for existing use basis. At balance sheet date the market value of the investment property was not matetially different from the historical cost as the development project was recently completed.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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CORNELIA CARE HOMES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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The building development project has been completed during the year. Due to unfavourable market conditions for real estate, the directors have decided to retain the properties (flats) and let out for rental income instead of immediate sale. Accordingly, the value of stock in trade has been reclassified as Investment Properties.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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CORNELIA CARE HOMES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Related party transactions
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The Company has taken exemption under FRS 102, not to disclose any transactions entered into between group companies that are eliminated on consolidation. The ultimate parent company, St Michael's Care Homes Ltd prepares group accounts. Copy of group accounts are available from 19-20 Bedfordwell Road, Eastbourne, East Sussex, BN21 2BG.
During the year, the company had loan transactions as below with companies under common control.
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Amount due from companies under common control
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Amount due to companies under common control
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The Company had entered into contract with a company under common control for the development of the freehold property into residential flats. During the year, the Company received the final invoice of £2,023,308 (2023: £nil) as the development project has been completed and the Company paid £100,000 in addition to the advances of £1,126,211 made in earlier years. Total amounts owed by the Company at the year end for the development project were £979,397 (2023: £nil) which is included in other creditors.
All inter-company advances are interest free, unsecured and repayable on demand.
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The ultimate controlling parties are Mr & Mrs Nadesan and Mrs R Thillainathan by virtue of their shareholding in the parent company.
The auditors' report on the financial statements for the year ended 30 June 2024 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements. At balance sheet date, the company had net current liabilities and net liabilities of £1,939,753 (2022:£1,929,101). As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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The audit report was signed on 19 March 2025 by Janak Raj Pokhrel (Senior statutory auditor) on behalf of Mantax Lynton.
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