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Registration number: 1878651

Kapil Care Homes Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Kapil Care Homes Limited

Contents

Strategic Report

1 to 2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 23

 

Kapil Care Homes Limited

Strategic Report for the Year Ended 30 September 2024

The director presents his strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is that of proprietors of rest homes for the elderly.

Fair review of the business

The company has continued to trade profitably and has continued to focus on managing occupancy and costs to maintain profitability. This is reflected through a 10% increase in turnover.

The operating profit margin of 26% has increased from 2023.

Continuity of service and care provided to residents is vitally important to the business. In order to ensure high quality care is provided it is necessary for the business to employ well trained staff and to encourage strong staff retention. The company has maintained its dedication to providing training staff and to ensure we provide high quality care as recognised by the Care Quality Commission.

Non-financial measures include occupancy, both in absolute terms and as a percentage of available beds and weekly fees. Both of which underpin revenue and therefore management monitor these KPIs regularly.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£000

4,081

3,709

Turnover growth

%

10

17

Operating profit

£000

1,061

708

Operating profit margin

%

26

19

Principal risks and uncertainties

The business' principal risks are based on the reliance on local authority funding. Continued pressure is being exerted to reduce Government and Local Authority spending, which is manifesting itself increasingly in the reduction of fees being paid for the care of funded residents. In response to this I will continue to work closely with the local authorities and seek efficiencies across our operations.

Changes to the macroeconomic environment and how we respond to these is another principal risk to the business as the principal costs for the business include staff costs, energy and food. All of which are subject to on-going cost pressures in advance of inflation.

Management performs regular reviews of these costs to ensure that we source both energy and food at the best possible rate, and that labour is employed as effectively as possible.

The Company's activities are subject to a high level of regulation and inspection by the Care Quality Commission. The risk from the negative effects of any non-compliance is the impact which it may have on the Company's reputation and profits. Inspections of the care homes take place regularly. The risks are minimised by a strict management reporting regime which is part of a rigorous process of internal control over quality and compliance, along with evolving policies and practices that take into account changes in regulatory obligations.

 

Kapil Care Homes Limited

Strategic Report for the Year Ended 30 September 2024

Approved by the director on 23 April 2025 and signed on its behalf by:


Mr S P Kapil
Director

 

Kapil Care Homes Limited

Director's Report for the Year Ended 30 September 2024

The director presents his report and the financial statements for the year ended 30 September 2024.

Director of the company

The director who held office during the year was as follows:

Mr S P Kapil

Financial instruments

Objectives and policies
 

The director takes the management of risk very seriously and as such have policies and procedures in place which have been authorised by the board. The director is involved in the day to day operations and as such risks are highlighted and mitigated on a timely basis.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by holding sufficient cash reserves in order to fund operations and to meet loan repayment requirements.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Approved by the Board on 23 April 2025 and signed on its behalf by:


Mr S P Kapil
Director

 

Kapil Care Homes Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

 

Kapil Care Homes Limited

Independent Auditor's Report to the Members of Kapil Care Homes Limited

Opinion

We have audited the financial statements of Kapil Care Homes Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 30 September 2024 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 auditor 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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

 

Kapil Care Homes Limited

Independent Auditor's Report to the Members of Kapil Care Homes Limited

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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 director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Kapil Care Homes Limited

Independent Auditor's Report to the Members of Kapil Care Homes Limited

Auditor 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 an auditor’s report 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

the nature of the industry and sector, control environment and business performance;

the company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

the key laws and regulations under which the business operates and whether management were aware of any instances of non-compliance;

whether the management have knowledge of any actual, suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;

enquiring of management, concerning any actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

in addressing the risk of fraud in revenue recognition, we have performed focused testing on trades close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

we also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Kapil Care Homes Limited

Independent Auditor's Report to the Members of Kapil Care Homes Limited

 

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.




Robert Smith BSc FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor

50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

23 April 2025

 

Kapil Care Homes Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

4,081,257

3,709,374

Gross profit

 

4,081,257

3,709,374

Administrative expenses

 

(3,020,513)

(3,000,915)

Operating profit

4

1,060,744

708,459

Other interest receivable and similar income

5

6,295

9,128

Interest payable and similar expenses

6

(127,502)

(104,440)

   

(121,207)

(95,312)

Profit before tax

 

939,537

613,147

Taxation

10

(234,885)

(168,235)

Profit for the financial year

 

704,652

444,912

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Kapil Care Homes Limited

(Registration number: 1878651)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

4,416,500

4,386,250

Investment property

12

503,276

503,276

 

4,919,776

4,889,526

Current assets

 

Stocks

13

347,538

346,758

Debtors

14

1,816,362

1,460,536

Cash at bank and in hand

15

719,852

340,254

 

2,883,752

2,147,548

Creditors: Amounts falling due within one year

16

(750,537)

(596,781)

Net current assets

 

2,133,215

1,550,767

Total assets less current liabilities

 

7,052,991

6,440,293

Creditors: Amounts falling due after more than one year

16

(2,784,267)

(2,454,857)

Provisions for liabilities

18

(280,770)

(277,477)

Net assets

 

3,987,954

3,707,959

Capital and reserves

 

Called up share capital

20

76

100

Capital redemption reserve

24

-

Profit and loss account

3,987,854

3,707,859

Total equity

 

3,987,954

3,707,959

Approved and authorised by the director on 23 April 2025
 


Mr S P Kapil
Director

   
 

Kapil Care Homes Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2023

100

-

3,707,859

3,707,959

Profit for the year

-

-

704,652

704,652

Total comprehensive income

-

-

704,652

704,652

Purchase of own share capital

(24)

-

(424,657)

(424,681)

Other capital redemption reserve movements

-

24

-

24

At 30 September 2024

76

24

3,987,854

3,987,954

Share capital
£

Retained earnings
£

Total
£

At 1 October 2022

100

3,262,947

3,263,047

Profit for the year

-

444,912

444,912

At 30 September 2023

100

3,707,859

3,707,959

 

Kapil Care Homes Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

704,652

444,912

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

64,566

45,598

Profit on disposal of tangible assets

4

(8,312)

-

Finance income

5

(6,295)

(9,128)

Finance costs

6

127,502

104,440

Corporation tax expense

10

234,885

168,235

 

1,116,998

754,057

Working capital adjustments

 

Increase in stocks

 

(780)

(339,513)

Decrease/(increase) in debtors

 

18,398

(52,385)

Increase in creditors

 

25,151

134,621

Cash generated from operations

 

1,159,767

496,780

Corporation taxes paid

 

(123,226)

(80,664)

Net cash flow from operating activities

 

1,036,541

416,116

Cash flows from investing activities

 

Interest received

5

6,295

9,128

Acquisitions of tangible assets

(42,306)

(6,625)

Proceeds from sale of tangible assets

 

23,528

-

Cash receipts from repayment of loans, classified as investing activities

 

-

52,243

Advances of loans, classified as investing activities

 

(374,224)

-

Net cash flows from investing activities

 

(386,707)

54,746

Cash flows from financing activities

 

Interest paid

6

(127,502)

(104,440)

Payments for purchase of own shares

 

(424,657)

-

Proceeds from bank borrowing draw downs

 

520,000

-

Repayment of bank borrowing

 

(165,682)

(244,755)

Repayment of other borrowing

 

(72,395)

(31,004)

Net cash flows from financing activities

 

(270,236)

(380,199)

Net increase in cash and cash equivalents

 

379,598

90,663

Cash and cash equivalents at 1 October

 

340,254

249,591

Cash and cash equivalents at 30 September

15

719,852

340,254

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Old Barn
Burringham Road
Scunthorpe
North Lincolnshire
DN17 2AA

Registered number:1878651
 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 taxable income.

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

15% per annum on written down value

Motor vehicles

15% per annum on written down value

Freehold land and buildings

No depreciation is provided on as residual value is equivalent to cost and so any depreciation is immaterial

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the director. The director uses observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are recorded at fair value, net of transaction costs.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

4,081,257

3,709,374

4

Operating profit

Arrived at after charging

2024
£

2023
£

Depreciation expense

64,566

45,598

Profit on disposal of property, plant and equipment

(8,312)

-

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

399

269

Other finance income

5,896

8,859

6,295

9,128

6

Interest payable and similar expenses

2024
£

2023
£

Interest on obligations under finance leases and hire purchase contracts

8,645

6,500

Interest expense on other finance liabilities

118,857

97,940

127,502

104,440

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

7

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,044,349

2,025,501

Social security costs

146,465

136,280

Pension costs, defined contribution scheme

34,855

31,787

Other employee expense

9,552

7,404

2,235,221

2,200,972

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

6

6

Other departments

105

107

111

113

8

Director's remuneration

The director's remuneration for the year was as follows:

2024
£

2023
£

Remuneration

72,500

72,500

Contributions paid to money purchase schemes

1,535

674

74,035

73,174

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

5,000

5,000


 

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

231,592

123,226

Deferred taxation

Arising from origination and reversal of timing differences

3,293

45,009

Tax expense in the income statement

234,885

168,235

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

939,537

613,147

Corporation tax at standard rate

234,885

153,287

Tax decrease from effect of capital allowances and depreciation

(3,293)

(13,309)

Decrease from effect of different UK tax rates

-

(16,752)

Deferred tax expense from unrecognised tax loss or credit

3,293

13,309

Deferred tax expense relating to changes in tax rates or laws

-

31,700

Total tax charge

234,885

168,235

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and capital allowances

234,885

234,885

2023

Liability
£

Difference between accumulated depreciation and capital allowances

168,235

168,235

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

11

Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

4,146,778

409,038

284,310

4,840,126

Additions

-

6,918

103,114

110,032

Disposals

-

-

(51,920)

(51,920)

At 30 September 2024

4,146,778

415,956

335,504

4,898,238

Depreciation

At 1 October 2023

-

358,713

95,163

453,876

Charge for the year

-

8,108

56,458

64,566

Eliminated on disposal

-

-

(36,704)

(36,704)

At 30 September 2024

-

366,821

114,917

481,738

Carrying amount

At 30 September 2024

4,146,778

49,135

220,587

4,416,500

At 30 September 2023

4,146,778

50,325

189,147

4,386,250

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Motor vehicles

184,475

182,950

   

12

Investment properties

2024
£

At 1 October

503,276

At 30 September

503,276

Investment property was valued by the director who is internal to the company. The basis of this valuation was fair value.

There has been no valuation of investment property by an independent valuer.

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

13

Stocks

2024
£

2023
£

Stocks

347,538

346,758

14

Debtors

Note

2024
£

2023
£

Trade debtors

 

105,420

145,172

Amounts owed by related parties

22

1,572,282

1,198,058

Other debtors

 

110,484

99,798

Prepayments

 

28,176

17,508

   

1,816,362

1,460,536

15

Cash and cash equivalents

2024
£

2023
£

Cash on hand

619

619

Cash at bank

719,233

339,635

719,852

340,254

16

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

17

203,115

182,876

Trade creditors

 

60,813

65,412

Outstanding defined contribution pension costs

 

7,724

8,527

Other payables

 

56,403

56,403

Accrued expenses

 

190,890

160,337

Corporation tax liability

 

231,592

123,226

 

750,537

596,781

Due after one year

 

Loans and borrowings

17

2,784,267

2,454,857

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

17

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

174,720

149,724

Hire purchase contracts

28,395

33,152

203,115

182,876

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

2,634,736

2,305,414

Hire purchase contracts

149,531

149,443

2,784,267

2,454,857

Included in the loans and borrowings are the following amounts due after more than five years:

2024
£

2023
£

After more than five years by instalments

1,897,048

1,636,382

-

-

Bank borrowings

The bank loan is secured by a charge over the land and buildings belonging to the company.

The loans are repayable by instalments with monthly repayments at interest rates of 2.88%, 7.8% and 3.95%.

Other borrowings


The obligations under hire purchase contracts are secured upon the assets to which they relate.

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

277,477

277,477

Increase in existing provisions

3,293

3,293

At 30 September 2024

280,770

280,770

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £34,855 (2023 - £31,787).

Contributions totalling £7,724 (2023 - £8,527) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

76

76

100

100

       

During the year, the company bought back the entire shareholding of 24 shares from one shareholder.

21

Contingent liabilities

Intercompany guarantee. The amount guaranteed is £474,967 (2023 - £528,085). The company is party to an intercompany guarantee to its bankers in respect of Statepalm Limited.

22

Related party transactions

During the year the director received an additional loan of £195,636 (2023 - £320,124). £39,211 was repaid in the year (2023 - £335,634). The amount owed by the director at the start of the year was £308,465 (2023 - £323,975) and the amount outstanding at the year end was £464,890 (2023 - £308,465). Interest has been charged on this loan at the official rate of 2.25% and it is repayable on demand.

 

Kapil Care Homes Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Summary of transactions with entities with joint control or significant interest

During the year the company recharged goods and services of £126,270 (2023 - £105,607) to a company under common control.

At the balance sheet date the amount due from companies under common control was £1,107,392 (2023 - £926,326).