**Charity Registration No. 1045088**
## **GURU NANAK DARBAR GURDWARA**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
# **FOR THE YEAR ENDED 31 MARCH 2021**
## **GURU NANAK DARBAR GURDWARA**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** D Singh Chhina S Singh Sidhu G Singh Sundhers J Singh R K Dhaliwal **Charity number** 1045088 **Principal address** 19 A Church Parade Oakengates Telford United Kingdom TF2 6EX **Independent examiner** B.S.S. & Co (Accountancy Services) Limited 75 Aston Road Shifnal Shropshire United Kingdom TF11 8DU
## **GURU NANAK DARBAR GURDWARA**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Statement of financial position|5|
|Notes to the financial statements|6 - 11|
## **GURU NANAK DARBAR GURDWARA**
## **TRUSTEES REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees present their annual report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) " (effective 1 January 2019 ).
## **Objectives and activities**
To advance the sikh religion in accordance with the teaching of siri guru granth sahib ji and to advance the education and religion of his followers.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
The trustees consider that the performance of the charity this year has been satisfactory with the activity staying in line with the previous year. During the year the charity generated £ 39,339 donations from charitable activities as compared to £ 89,184 in the previous year.
## **Financial review**
The charity holds reserves of £ 467,688 (20 20 £ 454,168 ) which are unrestricted funds. These funds are held in order to meet any unforeseen expenditure that may occur.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity ’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity is a n unincorporated association and is governed by it's constitution. Trustees are appointed through a process of election.
The trustees who served during the year and up to the date of signature of the financial statements were: D Singh Chhina S Singh Sidhu G Singh Sundhers J Singh R K Dhaliwal
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## **GURU NANAK DARBAR GURDWARA**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees r eport was approved by the Board of Trustees.
D Singh Chhina Trustee R Kaur Dhaliwal Trustee
S Singh Sidhu Trustee J Singh Trustee
G Singh Sundhers Trustee
## **9 December 2021**
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## **GURU NANAK DARBAR GURDWARA**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF GURU NANAK DARBAR GURDWARA**
I report to the trustees on my examination of the financial statements of Guru Nanak Darbar Gurdwara (the charity) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **B.S.S. & Co (Accountancy Services) Limited**
75 Aston Road Shifnal Shropshire TF11 8DU United Kingdom
Dated: 9 December 2021
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## **GURU NANAK DARBAR GURDWARA**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|
**funds**|
|||**2021**|
**2020**|
||**Notes**|
**£**|
**£**|
|**Income from:**||||
|Donations and legacies|**3**|46,526|
89,184|
|**Expenditure on:**||||
|Raising funds|**4**|17,820|
28,871|
|Charitable activities|**5**|14,889|
36,474|
|Other|**8**|1,712|
1,712|
|**Total resources expended**||34,421|
67,057|
|**Net income for the year/**||||
|**Net movement in funds**||12,105|
22,127|
|Fund balances at 1 April 2020||455,583|
432,041|
|**Fund balances at 31 March 2021**||467,688|
454,168|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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## **GURU NANAK DARBAR GURDWARA**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Property, plant and equipment
**9**
**Current assets**
Cash at bank and in hand
**Current liabilities**
**11**
Net current liabilities
**Total assets less current liabilities**
**Income funds**
Unrestricted funds|**2021**
**£**
12,842
(32,859)|**£**
487,705
(20,017)
467,688
467,688
467,688|**2020**
**£**
6,597
(42,361)|**£**
489,932
(35,764)
454,168
454,168
454,168|
|---|---|---|---|---|
In relation to the financial statements which comprise and the related notes:
- The trustees approve these financial statements and confirm that they are responsible for them, including selecting the appropriate accounting policies, applying them consistently and making, on a reasonable and prudent basis, the judgments underlying them. They have been prepared on the going concern basis on the grounds that the charity will continue in operation .
- The trustees confirm that they have made available to B.S.S. & Co (Accountancy Services) Limited, all the charity's accounting records and provided all the information necessary for the compilation of the financial statements.
- The trustees confirm that to the best of their knowledge and belief, the accounting records reflect all transactions of the charity for the year ended 31 March 2020.
The financial statements were approved by the Trustees on 9 December 2021
|D Singh Chhina|S Singh Sidhu|
|---|---|
|**Trustee**|**Trustee**|
|**J Singh**|**G Singh Sundhers**|
|**Trustee**|**Trustee**|
**R Kaur Dhaliwal Trustee**
- 5 -
## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Guru Nanak Darbar Gurdwara is a public benefit entity and a registered charity in England and Wales and is unincorporated.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . 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 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.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
## **1.6 Property, plant and equipment**
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 20% on WDV Computers 20% on WDV
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 recognised in the statement of financial activities .
## **1.7 Impairment of non-current assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible 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 ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents 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.
## _**Basic financial assets**_
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including trade and other payables and bank 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 p aymen 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.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.9 Employee benefits**
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Donations and gifts|39,339|89,184|
|Government Grants|7,187|-|
||46,526|89,184|
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## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **4 Raising funds**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|
funds|
||**2021**|
2020|
||**£**|
£|
|Fundraising and publicity|||
|Staff costs|12,245|
21,929|
|Support costs|5,575|
6,942|
|Fundraising and publicity|17,820|
28,871|
||17,820|
28,871|
|**Charitable activities**|||
||**Charitable**|
**Charitable**|
||**Expenditure**|
**Expenditure**|
||**2021**|
**2020**|
||**£**|
**£**|
|Staff costs|446|
-|
|Depreciation and impairment|2,228|
2,784|
|Rates & Water|1,117|
2,620|
|Insurance|1,101|
1,115|
|Light & Heat|6,230|
16,135|
|Repairs & Maintenance|3,271|
12,201|
|Post & Stationery|-|
1,619|
|Charitable expenditure heading 8|496|
-|
||14,889|
36,474|
||14,889|
36,474|
## **5 Charitable activities**
## **6 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Other pension costs|**2021**
**Number**
1
**2021**
**£**
12,245
446
12,691|**2020**
**Number**
2
**2020**
**£**
21,929
-
21,929|
|---|---|---|
There were no employees whose annual remuneration was more than £60,000.
## **8 Other**
|Financing costs
**Property, plant and equipment**
**Cost**
At 1 April 2020
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
1,712
1,712
1,712
1,712
**Freehold**
**Propety**
**Fixtures and**
**fittings**
**Computers**
**Total**
**£**
**£**
**£**
**£**
478,795
50,113
780
529,688
478,795
50,113
780
529,688
-
39,209
546
39,755
-
2,181
47
2,228
-
41,390
593
41,983
478,795
8,723
187
487,705
478,795
10,903
234
489,932|
|---|---|
## **9 Property, plant and equipment**
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## **GURU NANAK DARBAR GURDWARA**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **9 Property, plant and equipment**
## **(Continued)**
|**10**
**Borrowings**
Bank loans
Payable within one year
**11**
**Current liabilities**
**Notes**
Bank loans
**10**
Other taxation and social security
Other payables
Accruals and deferred income|**2021**
**£**
35,611
35,611
**2021**
**£**
35,611
925
(3,631)
(46)
32,859|**2020**
**£**
41,774
41,774
**2020**
**£**
41,774
369
-
218
42,361|
|---|---|---|
## **12 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none) .
## **13 Analysis of changes in net (debt)/funds**
|**Analysis of changes in net (debt)/funds**||||
|---|---|---|---|
||**At 1 April 2020**|**Cash flows At 31 March 2021**||
||**£**|**£**|**£**|
|Cash at bank and in hand|6,597|6,245|12,842|
|Loans falling due within one year|(41,774)|6,163|(35,611)|
||(35,177)|12,408|(22,769)|
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