Company Registration No. 08139384 (England and Wales)
CASPAN LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
CASPAN LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
CASPAN LIMITED
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investment property
2
14,000,000
14,000,000
Current assets
Debtors
3
30,984
26,499
Cash at bank and in hand
436,852
935,568
467,836
962,067
Creditors: amounts falling due within one year
4
(6,429,271)
(1,917,200)
Net current liabilities
(5,961,435)
(955,133)
Total assets less current liabilities
8,038,565
13,044,867
Creditors: amounts falling due after more than one year
5
-
(5,393,275)
Provisions for liabilities
(799,334)
(783,094)
Net assets
7,239,231
6,868,498
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
7,239,131
6,868,398
Total equity
7,239,231
6,868,498
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
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 July 2020 and are signed on its behalf by:
M Oberoi
Director
Company Registration No. 08139384
CASPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 2 -
1
Accounting policies
Company information
Caspan Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Garden Floor, 2 Kensington Square, London, W8 5EP.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
As described in the financial statements, as at 31 July 2019 the company had net current liabilities of £5,961,435, which includes a bank loan of £5,393,275. Subsequent to the balance sheet date the bank loan was refinanced, and now falls due for settlement over 5 years.
true
In addition, the net current liabilities include £650,000 of loan notes due to shareholders of the company. The shareholders have confirmed to the directors of Caspan Limited that they will not withdraw the shareholder funding loans per the Shareholder Agreement to the detriment of the company’s ability to meet its liabilities as they fall due. Accordingly the financial statements are prepared on the going concern basis.
1.3
Turnover
Turnover represents amounts attributable to the year, exclusive of Value Added Tax, in respect of rents receivable for the period.
1.4
Investment properties
Freehold investment properties, which represent completed care homes held for use in an operating lease, are included in the balance sheet at their open market value and are not depreciated.
1.5
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and represent cash in hand and deposits held at call with banks.
1.6
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.
CASPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 3 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price
. 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 other loans,
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
1.7
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.
Deferred tax
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing difference can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
2
Investment property
2019
£
Fair value
At 1 August 2018 and 31 July 2019
14,000,000
The valuations of investment properties were made as at 27 March 2018 by CBRE, on an open market for existing use basis, with subsequent additions recorded at cost pending external valuation. It is the opinion of the directors that the carrying value stated above is a fair reflection of the market value of the property at the balance sheet date.
CASPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 4 -
3
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
30,984
26,499
4
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
5,393,275
95,700
Trade creditors
60,810
50,264
Corporation tax
68,364
32,175
Amounts due to related parties
650,000
1,472,697
Other creditors
95,051
95,050
Accruals and deferred income
161,771
171,314
6,429,271
1,917,200
The bank loan is secured by fixed and floating charges over the company's assets and undertakings and a first charge over the company's investment property.
The bank loan was repaid in full in November 2019, and a new loan facility taken out to replace it.
5
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans
-
5,393,275
The bank loan is secured by fixed and floating charges over the company's assets and undertakings and a first charge over the company's investment property.
The bank loan was repaid in full in November 2019, and a new loan facility taken out to replace it.
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
7
Profit and loss reserves
Within retained earnings is a non distributable amount of £5,548,073 (2018: £5,548,073) which relates to the revaluation of investment property, stated net of the related deferred taxation liability.
CASPAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 5 -
8
Related party transactions
At the balance sheet date the company owed £450,000 (2018: £950,000) to Zedan Limited, a company under common control. The balance is interest free and repayable on demand.
The company owed M Oberoi, a director and shareholder of the company, £200,000 (2018: £522,697). The balance is interest free and repayable on demand.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Lee Van Houplines.
The auditor was Baldwins Audit Services.