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Registered number: 03362427
MAHARISHI EDUCATION CENTRE LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2024
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MAHARISHI EDUCATION CENTRE LIMITED
REGISTERED NUMBER: 03362427
BALANCE SHEET
AS AT 31 DECEMBER 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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Creditors: amounts falling due after more than one year
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MAHARISHI EDUCATION CENTRE LIMITED
REGISTERED NUMBER: 03362427
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 comprehensive income 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 by:
The notes on pages 3 to 11 form part of these financial statements.
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Maharishi Education Centre Limited (the "Company") is a private company limited by shares, incorporated and domiciled in England and Wales. The address of the registered office is Maharishi Peace Palace, Gardenia Close, Rendlesham, Woodbridge, Suffolk, IP12 2GX.
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:
The Directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern.
The Directors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties about the Company's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
The Directors are confident that the business model adopted in 2019/20 following restructuring post launch in 2016, is proving successful. This is indicated by the return to a small profit in 2023 despite the cost of living crisis following the slow climb out and recovery from the Covid period and some significant building maintenance requirements in 2021/2022. The expectations for 2025 and 2026 are encouraging, with an intention to build on the success of a very large and lengthy course for senior members of the organisation over the 2024 summer fully identifying the potential of ‘high end’ courses at the Peace Palace. Occupancy rates for residential courses continue to strengthen, and the Maharishi On line courses are ever popular. Forward bookings by course participants for courses during seasonal periods such as Christmas, New Year and Easter are also strengthening, supporting positive cash flow and an increasing number of overseas participants are joining events and courses as the positive reputation of the Peace Palace service and environment gains wider recognition. The introduction of the Peace Palace shop has provided incremental income. Additionally the Peace Palace has been able to offer ayurvedic consultations during courses.
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Freehold land is not depreciated.
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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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The average monthly number of employees, including directors, during the year was 9 (2023 - 7).
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge for the year on owned assets
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge for the year on owned assets
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Prepayments and accrued income
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease contracts
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Accruals and deferred income
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Amounts owed to group undertakings relates to Maharishi Foundation, the parent undertaking, of which £1,828,609 (2022: £1,828,609) relates to amounts loaned to build the Peace Palace. The amount is unsecured and interest free, and repayable upon demand.
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Creditors: Amounts falling due after more than one year
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Obligations under finance leases contracts
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Accruals and deferred income
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Other loans includes an amount of £689,620 (2023: £721,461) owed to Maharishi Foundation, the ultimate parent undertaking, which is unsecured and bears interest at 3% above base rate per annum capped to 4%, and is not due for repayment before 31 December 2026.
The bank loan relates to a Covid Bounce Back loan arrangement with HSBC. The loan was originally repayable by 59 instalments commencing 12 months after the initial draw down. During 2023, the Company renegotiated the terms of the loan such that the loan capital is being repaid by equal installments over 10 years commencing in January 2022. The loan bears interest at a rate of 2.5% per annum and is unsecured.
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After consideration the directors reclassified an amount of £1,828,609 due to Maharishi Foundation from creditors: amounts falling due after more than one year, to creditors: falling due within one year as there is no specified repayment date in place. There was no effect on the result for the year or on reserves.
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MAHARISHI EDUCATION CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £3,876 (2023 - £3,821). Contributions totalling £16 (2023 - £88) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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The Company has taken advantage of the exemption under FRS 102 to not disclose transactions with its ultimate parent undertaking, Maharishi Foundation and its subsidiaries, as the Company is a wholly owned subsidiary.
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The immediate and ultimate controlling party is Maharishi Foundation, a charity registered in both England and Wales and in Scotland.
The smallest and largest group for which the results of the Company are included is that headed by Maharishi Foundation. Consolidated financial statements are publicly available from Gardenia Close, Rendlesham, Woodbridge IP12 2GX or the Charity Commission for England and Wales.
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