K_&_K_HEALTHCARE_LIMITED - Accounts


Company Registration No. 06454118 (England and Wales)
K & K HEALTHCARE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
PAGES FOR FILING WITH REGISTRAR
K & K HEALTHCARE LIMITED
COMPANY INFORMATION
Directors
Mr S Kotecha
Mrs B Kotecha
Secretary
Mrs B Kotecha
Company number
06454118
Registered office
Prebend House
72 London Road
Leicester
LE2 0QR
Accountants
BPC Chandarana+Co Limited
Chartered Accountants
Prebend House
72 London Road
Leicester
LE2 0QR
Business address
216-218 Tomkinson Road
Nuneaton
Warwickshire
CV10 8BW
Belgrave Health Centre
52 Brandon Street
Leicester
LE4 6AW
Bankers
Lloyds Bank PLC
Leicester
K & K HEALTHCARE LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
K & K HEALTHCARE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2017
31 July 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Goodwill
3
330,320
360,349
Tangible assets
4
741,043
754,199
Investment properties
5
210,813
169,813
Investments
6
150
150
1,282,326
1,284,511
Current assets
Stocks
70,104
78,295
Debtors
8
538,291
520,870
Cash at bank and in hand
10,448
5,607
618,843
604,772
Creditors: amounts falling due within one year
9
(623,208)
(553,704)
Net current (liabilities)/assets
(4,365)
51,068
Total assets less current liabilities
1,277,961
1,335,579
Creditors: amounts falling due after more than one year
10
(541,232)
(704,725)
Provisions for liabilities
(23,290)
(13,181)
Net assets
713,439
617,673
Capital and reserves
Called up share capital
12
200
200
Non-distributable reserves
33,210
-
Profit and loss reserves
680,029
617,473
Total equity
713,439
617,673

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Act 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 by the board of directors and authorised for issue on 15 March 2018 and are signed on its behalf by:
Mr S Kotecha
Director
Company Registration No. 06454118
K & K HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2017
- 2 -
Share capital
Non-distributable reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2015
200
-
550,100
550,300
Year ended 31 July 2016:
Profit and total comprehensive income for the year
-
-
126,373
126,373
Dividends
-
-
(59,000)
(59,000)
Balance at 31 July 2016
200
-
617,473
617,673
Year ended 31 July 2017:
Profit and total comprehensive income for the year
-
-
185,766
185,766
Dividends
-
-
(90,000)
(90,000)
Transfers
-
33,210
(33,210)
-
Balance at 31 July 2017
200
33,210
680,029
713,439
K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2017
- 3 -
1
Accounting policies
Company information

K & K Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prebend House, 72 London Road, Leicester, LE2 0QR.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 July 2017 are the first financial statements of K & K Healthcare Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

 

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is of 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
- 4 -

Tangible fixed assets include investment properties on an existing use open market value basis. Other tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings Freehold
20 years straight line basis.
Land and buildings Leasehold
Over the life of the lease.
Fixtures, fittings & equipment
5-10 years straight line basis.
Motor vehicles
25% per annum on cost.

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
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the income statement.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
- 5 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
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 statement of financial position 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 AND LIABILITIES

Basic financial assets and liabilities, which include debtors and creditors with no stated interest rate and receivables or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
1
Accounting policies
(Continued)
- 6 -
CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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 income statement, 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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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.

K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 7 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 35 (2016 - 34).

3
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2016
687,256
Elimination
(86,675)
At 31 July 2017
600,581
Amortisation and impairment
At 1 August 2016
326,907
Amortisation charged for the year
30,029
Elimination
(86,675)
At 31 July 2017
270,261
Carrying amount
At 31 July 2017
330,320
At 31 July 2016
360,349
4
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2016
356,843
433,240
204,525
19,809
1,014,417
Additions
-
-
22,357
17,650
40,007
Eliminated in respect of disposals
-
-
(17,193)
(19,809)
(37,002)
At 31 July 2017
356,843
433,240
209,689
17,650
1,017,422
Depreciation and impairment
At 1 August 2016
29,662
86,057
124,690
19,809
260,218
Depreciation charged in the year
4,893
17,329
26,896
4,045
53,163
Eliminated in respect of disposals
-
-
(17,193)
(19,809)
(37,002)
At 31 July 2017
34,555
103,386
134,393
4,045
276,379
Carrying amount
At 31 July 2017
322,288
329,854
75,296
13,605
741,043
At 31 July 2016
327,181
347,183
79,835
-
754,199
K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 8 -
5
Investment property
2017
£
Fair value
At 1 August 2016
169,813
Revaluations
41,000
At 31 July 2017
210,813

The investment properties are stated at the directors' own valuation, using an open market value basis.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2017
2016
£
£
Cost
169,813
169,813
Accumulated depreciation
-
-
Carrying amount
169,813
169,813
6
Fixed asset investments
2017
2016
£
£
Investments
150
150

 

The fixed assets investments are stated at cost.

Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 August 2016 & 31 July 2017
150
Carrying amount
At 31 July 2017
150
At 31 July 2016
150
K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 9 -
7
Joint ventures

Separate company financial statements are required to be prepared by law.

Details of the company's joint ventures at 31 July 2017 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Medicine Support Limited
England
Consultancy services
Ordinary
50.00

The investments in subsidiaries are all stated at cost.

8
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
391,824
387,772
Other debtors
146,467
133,098
538,291
520,870
9
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
303,470
242,189
Trade creditors
257,130
261,777
Corporation tax
39,822
28,498
Other taxation and social security
5,054
6,023
Other creditors
17,732
15,217
623,208
553,704

The bank loans and overdrafts are secured by way of a fixed and floating charge over the assets of the company.

 

Obligations under finance leases (included within other creditors) are secured on the assets concerned.

 

 

K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 10 -
10
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Bank loans
11
533,946
704,725
Obligations under finance leases
7,286
-
541,232
704,725

The bank loans are secured by way of a fixed and floating charge over the assets of the company.

 

Obligations under finance leases are secured on the assets concerned.

Amounts included above which fall due after five years are as follows:
Payable by instalments
212,189
259,293
11
Loans and overdrafts
2017
2016
£
£
Bank loans
704,269
870,555
Bank overdrafts
133,147
76,359
837,416
946,914
Payable within one year
303,470
242,189
Payable after one year
533,946
704,725

 

12
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
200 Ordinary shares of £1 each
200
200
13
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2017
2016
£
£
624,786
650,000
K & K HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2017
- 11 -
14
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr S Kotecha - Director's current account
3.00
50,737
104,108
1,772
(122,702)
33,915
50,737
104,108
1,772
(122,702)
33,915
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