REGISTERED CHARITY NUMBER: 1071912
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
FOR
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
Macalvins Limited Chartered Accountants and Statutory Auditors 7 St John's Road Harrow Middlesex HA1 2EY
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 6 |
| Statement of Financial Activities | 7 | ||
| Balance Sheet | 8 | ||
| Cash Flow Statement | 9 | ||
| Notes to the Cash Flow Statement | 10 | ||
| Notes to the Financial Statements | 11 | to | 19 |
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022
The trustees present their report with the financial statements of the charity for the year ended 30 September 2022. The trustees have adopted the provisions of 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
Objectives and aims
The objects and aims of the charity are to deliver the teachings of the founder, His Holiness Hazur Mahraz Darshan Das Ji, and through the teachings and leadership of the head and patron of Sachkhand Nanak Dham, His Holiness Hazur Mahraz Tirlochan Darshan Das Ji, through spiritual discourses and events at the Sachkhand Nanak Dham (Darshan Darbar), 25 North Park Richings Park Iver SL0 9DH.
The charitable objects are set out in the declaration of trust dated 5 October 1998:
1) TO ADVANCE RELIGION AND EDUCATION IN ACCORDANCE WITH (A) THE TEACHINGS OF SIRI GURU GRANTH SAHIB JEE AS EXPOUNDED BY HAZUR MAHRAZ DARSHAN DAS JEE AND IN DOING SO TO BRING MAN TO A GREATER REALISATION OF GOD AND (B) THE TEACHINGS, PHILOSOPHY AND IDEOLOGY OF THE FOUNDER OF SACHKHAND NANAK DHAM, HAZUR MAHRAZ DARSHAN DAS AND (C) THE PRINCIPLES OF DAS DHARAM WHICH WAS FOUNDED BY HAZUR MAHRAZ DARSHAN DAS.
2) TO RELIEVE IN CASES OF NEED THE AGED, DISABLED, ORPHANS AND OTHER CHILDREN WHO ARE IN CONDITIONS OF FINANCIAL HARDSHIP, SICKNESS OR DISTRESS.
Significant activities
During the year to 30 September 2022 the charity made a number of improvements to its temple at Richings Park, Iver at a cost of £121,951 and acquired a property in Dudley for conversion to a temple at a cost of £606,770.
The charity continues to benefit the public with services it offers in its temples. It is open to all faiths and free food is available and a safe place for individuals to worship freely regardless of religion, cast or gender. The charity gives daily sessions of hymn singing and spiritual discourses by the head of the organisation when His Holiness travels to the UK.
Public benefit
The charity meets the definition of a public benefit entity as set out in the Charities Act 2011 and in guidance issued by the Charities Commission.
In accordance with The Charities (Accounts and Reports) Regulations 2008 the trustees confirm that they have hadregard to the Charity Commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant.
The trustees confirm that:
-
they are aware of the Charity Commission guidance;
-
they have taken the Charity Commission guidance into account when making a decision to which the guidance is relevant; and
-
if they have decided to depart from the guidance, they have good reasons for doing so.
Page 1
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022
FINANCIAL REVIEW Financial review
Financial results:
The charity's net income for the year to 30 September 2022 before gains on revaluation was £252,482 (2021: £344,337).
Revaluation gains for the year to 30 September 2022 were recorded at £50,500 (2021: £1,062,971).
Prior year adjustment:
In the year to 30 September 2021 the trustees determined that the accounting policy for land and buildings should be changed to record land and buildings at market value. Previously land and buildings were recorded at cost less impairment.
As at 30 September 2021 the trustees valued land and buildings at £6,350,000. This figure was included in the financial statements for the year ended 30 September 2021.
In the absence of formal valuation reports from independent valuers for all properties the trustees have determined to take a prudent approach for the year ended 30 September 2022 and have determined that land and buildings should only be revalued in the financial statements where supported by independent valuation reports.
On this basis the trustees have restated the value for land and buildings at 30 September 2021 at £4,780,938.
A prior year adjustment of £1,569,062 has therefore been recognised in the financial statements for the year ended 30 September 2022. The prior year adjustment has the effect of reducing unrestricted reserves by £1,569,062.
Financial position:
As at 30 September 2022, the net assets were £3,075,200 (2021: £2,772,218) and it had total cash and bank balances of £102,484 (2021: £316,566).
Reserves policy
The charity's reserves policy is to maintain a cash reserve that equates to at least three months of expenditure. Over time the charity aims to build up cash reserves to a level that equates to at least six months of expenditure.
Going concern
The financial statements have been prepared on a going concern basis notwithstanding the fact that there are net current liabilities of £259,160 at 30 September 2022 (2021: £707,907).
Included in creditors: amounts falling due within one year is a short-term loan of £300,000 provided by members and adherents of the faith community (2021: various loans totalling £931,000). The loan for £300,000 was repaid in September 2023 and the charity obtained further loans from members and adherents of the faith community to enable the repayment to be made. These further loans are not due for repayment before January 2025.
Freehold land and buildings include a property which is now considered to be surplus to requirements. This property has now been offered for sale. This property is included in the financial statements at a value of £1,656,876 and is being marketed at offers over £1,650,000.
The charity has two bank loans and the total outstanding on these loans at 30 September 2022 was £2,439,823 (2021: £1,899,227). These loans are repayable over terms of 21 years and 19 years respectively. The annual commitment for repayment of these loans (capital and interest) does not exceed £225,000.
The trustees are confident that the charity has adequate funding to meet its ongoing commitments and accordingly the financial statements have been prepared on a going concern basis.
FUTURE PLANS
The charity is growing and has plans to open new centres and reach a wider audience in the UK. His Holiness is travelling regularly to the UK also and giving discourses and sermons.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Charity constitution
The charity is overseen and managed by its Board of Trustees. At present there are four trustees.
Page 2
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees
The power to appoint new trustees is vested in the members and adherents of the charity. In considering the recruitment of a new trustee, the members and adherents would look to individuals who have had involvement with the charity, who have the necessary skillsets and who have the availability of time to better the charity's goals and objectives.
Decision making
The overall strategy of the charity and its day-to-day administration are vested in the Board of Trustees. They are assisted by a secretary and a treasurer.
Induction and training of new trustees
On appointment, new trustees will undergo an orientation to brief them on their legal obligations under charity law, the Charity Commission guidance on public benefit, and to inform them of the content of the Trust Deed, the decision-making processes, the aims of the charity and recent financial performance of the charity
Key management remuneration
The trustees are considered to be the key management of the charity along with the secretary and treasurer.
The trustees, secretary and treasurer are not remunerated for their services.
The charity does not have any employees.
Related party transactions
During the year to 30 September 2022 the charity paid expenses of £19,973 to Mr T Das to support him whilst undertaking religious and spiritual duties in the UK (2021: nil).
Mr T Das is a trustee of the charity.
During the year to 30 September 2022 the charity made payments of £20,000 to SND Electrical Wholesalers (UK) Limited for electrical goods supplied to the charity (2021: nil).
The balance payable to SND Electrical Wholesalers (UK) Limited at 30 September 2022 was nil (2021: nil).
Mr J S Bhambra is a trustee of the charity and is a director and shareholder in SND Electrical Wholesalers (UK) Limited.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees have undertaken a risk assessment and continue to keep this under review. This process considers the risks to which the charity is exposed and agrees policies and actions to minimise any potential exposure to those risks.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1071912
Principal address
25 North Park Richings Park Iver SL0 9DH
Trustees
B Singh (appointed 21.7.23) S S Sokhi (resigned 14.8.23) B S Bahl J S Bhambra T Das
Page 3
SACHILHAND NANAK DHAM (DARSHAN DARBAR) UK REPORT OF THE TRUSTEES FOR THE YKAR ENDED 30 SEPTEMBER 2022 REFERKNCE AND ADMINISTRATIVE DETAIIS Audltor5 Macalvin$ Limi¢ed CharteT¢d Acc4)untaDts And Statutory Auditors 7 St Johtt's Road H8]TOW Middlesex HAI 2EY STATEMENT OF TRUSTELS, RESPOIYSIBILITILS The In¢¢5 are r¢spon5ibl¢ for preparing the Report of the TTU5tee5 and the financial siatemcnts in accordance with wpltcable law 8nd United KingdoTn Accounting Standards (United Kingdom Generally Accepted Ac¢ounting Pracii¢¢l. Th¢ law applicabl¢ dJaritie5 in Englojjd 4nd wal the ChltieS A¢t 2011, Charity IA¢¢ouDts and Reports) R¢gul&tions 2008 attd the provision5 of the trust d¢ed requires the trustees to prepare fjnancial statements for each fJn8nGial year whith give a true and [r viuv of th¢ State of atT2iT5 of the charity and of the incoming resourccs atjd application of r¢source5, including the incom¢ athd oxpenditure, of the Charity for that peri1. In preparing those financial st8m¢Rts. the trustees arc required to Select suithble accounting Wplicies and then apply them consist¢ntly observe the methods and principles in the Chority SORP,. rllake judgements and ¢stimat¢s that arc reasonabl¢ and prudent; Slal¢ wheiher applicable acntIo standards hav¢ Ix¢n followed. subject to any maCert departures disclos¢d atld explained i the financial slat¢mezJts; prepare the fin&n¢iai statements on the going con¢¢rn basi5 unless it ts inappropriate to prt5ume that th¢ ¢hHrity will e4)ntirtu¢ in business. The trustees are respon5Lbl¢ for keeping proper wunting records whirh disclose with r¢awnablc accuracy at time th¢ financial position of the charity aod to enable them to en5UTe thai the financial stai¢m¢nts comply with the Charities Act 2011. the Charity {A¢counts and R¢portsl R¢8ulaiions 2008 and th¢ provi5ion5 of th¢ In1 dtcd. Th¢y are also Te5ponsible for safeguarding the #ts of the chority and hence for taking re4sonAbl¢ 5tcps for ihc prev¢ntion dctcction of fraud and other irregulariii¢& Approved by order of the board of ¢TUStee5 0Th... and signed on its behalf by.. J S Bhambra- Trustee
REPORT OF THE INDF.PENDENf AUDII'ORS TO THE TRIIS7'Tr:LS O SACIIKHAND IYANAK DHAM (DARSHAN DARBARI UK OpiDion We Audited the fi]Jancial atents of Sttdjkbattd Nanak Dharn {Darshon Datbar) UK (the 'charily) for the year ended 30 Setrer 2022 which (x)mprie the Siatemcnl of Financial Activities, the Bal¢¢ Sh¢et, the Flow Siatem¢rLI gnd not¢5 to the fingmcial stst¢rn¢ni4 iu¢luding a of signifi¢snl &C¢OUllting p)liLics. The financial rep)rting framework that has IKen applied in their preparation is appliubk law UTLited Kingdom Acco]% St8ndaTds (Unitrd Kingdow Gengrallv A(wled A¢£ouniing Pla1¢<). In ouropinion the fin¢]•7 tements.. give a trnt and fair vi¢w of the state of the Charitys affairs as at 30 Septtmber 2022 and of it5 incoming tepA)ufL%S and appli10 of rcsourcc& forth¢ yeÈr then e]JtsJ. h&ve beell pmperly prcpaml in acry)rdan¢¢ with United Kingdom Gcncrnlly AcLtpttd AccoulltiDg PTaCti4 have beett pr¢par¢d in ?¢cordsn with the requirenll ofth¢ Chyrriites Aa 2011. Bsis lor opinion W¢ coThduLi¢d vui audit in acL1)rdlI with JnteJnationl Stsndfirds on Audititsg (UK) IJSAs OJKII srtd applicable law. Our Te%ponsibilities under rknsc standBrd% Bre further describcd in 1h¢ Auditors, SponsIbl]itIeS for th¢ 3udil of the fmancial statements se¢tioJJ of our r¢wn. We sre indeFndent ofihe charity in accordan¢¢ with IFK ¢thIC Tequircrtllts thai arc T¢l¢vani to our audit of the financial %txtsm¢nts in the UK in¢ludiTrg the TrRC's Ethiul Standard, 8Trd Ivt have fvlfLlled our oth¢r ethic re5PDnsibililies irj CLY>rdartce with these rtquirenKDrs. We bElicve thai the audit ¢vidcnce have ol)tained is 8uffitient 8ttd appropriatt to provid¢ b8s forour opinion. cour$105 r¢l•tin¥ to goin% ts)De¢rn auditlLg the financial stst¢tn¢n4 we have con¢lud¢d that th¢ Iru5tees' use of thc going ¢on¢¢rn basis of Èctounling in the preparation of the fJtwKial 8tAiemenis is appropriat¢. Based on the we ha perforrnc(i have not id¢ntifJ¢d maietial un(%nwnti¢s relltittg to e]ts OT condklions that, individually OT collectively, may Lasi si8nifJcaTht doubt on the charitys ability to ct>ntinue L8 a going conc¢m for a p¢riod of mt Itt tsvelvc months frorn when the flnanci 5tat¢m¢nts are auihorised for issu¢. Ourresponsibilili¢s atml the responsibilitics of th¢ truste¢$ with res11 going des¢nThed in fv rel¢vant sectiotss of this report. Other inform&ilon Ihc Irustees are rrynsible for the othcr infornigtion. The other infOrntIon wmprises the irtform&ion includ¢d in the A]Jlluil R¢powL otherthall ihe fi])aJ)cial stalem¢nts alld RepDrt of the IndePe[ent Auditots ther)ll. Our opinion on th¢ finyn¢illl sLeMen$ does not cov¢r the other infomiation except to the cxt¢ni oth¢MK ¢xpli¢itly stated ill our repDr4 we do not ¢xptrs8 any form of a$MrAnce tonclusion th¢T¢Q In conn¢¢ti(bn with our audit of the financial swtement4 our rcspoJJsibiliry is io T¢ad the other inforniaiion and, in doin8 su: eunsider whether the other inforn)atlQD is ]n&teri2lly in¢onsisni with the financial siaiemenl% OT our knoisledge obtsincd in Ihe audit or oiheTwTse appeajs to b¢ materially ¥ni551aie41. Tf we identifv such material incons¢st¢nci£s or appomt marerial missiat¢[nt we are requsT¢J io Ikt£rniine whether rhis giv¢s ris¢ lo a mafrrial mi&%takmeni irl the financial 51xiemenis Ihems¢lvc5. If, bascd on thc work r have rrOre coneludc that th¢Te is & mttila[ misstatemeDt of thi8 Othcr infonNtion, we ate required to report that fa. We have nolhin8 10 tEPOrt iti this regard. Matttrs M whKb w¢ are rt4uired to rert by exteptlo We have rtothithg to in resPt ofihe followng maiicrs wherc the Ch&Titi&q (A¢eow)ts Atsd Report81 Regulations 2008 r¢quires U5 to report lo you if, in OUT gPiDiQn'. the information given in ih¢ Reporl ofthe Trn5tets LS inconsLStenl in any [nakri respectwiih tk firwi¢ial stotellllS. or sufficient accounting records have not been ktPL or the finartcial sl&temenlS are not in 88re¢m¢nt with the Rccouftiing records T¢tUrn5' or E hav¢ Trot reeeived ail the infoTJJ)aiion Jnd eXplanlon$ require for ouraudit. Rtsponsibillths of trn$te As explaifted more fvlly in the Stsicm¢nt of Tn]st¢¢$' Kestx)rtsibiliiies th¢ are Tesp)rtsible for thc prcparation ofthe ftnAn¢iA] statements whicb give a tru¢ aJ)d fair view. And for such ini¢Jnal conlTuI #s ihe tTIL%lees determine 15 nece55ary 10 enabk th¢ pr¢par&tion orrsnan¢i•l siAtements that firc fTom mat¢TioI mi55ttttemenL wFKihcr to or em)r. In pr¢pll)g Ihe financi ststements, the trustccs are y¢stN)n5ibl¢ for as$18 the charity'8 8bility to colltinue &8 A goiog o)ncern. disclosin& as appli(xblA Jntttters retsted to going con¢¢rn ynd using the going ¢on¢¢m basis of accouDling unless th¢ SteeS either telld 10 liquidaie the (*ariiy QT to ce&8¢ op¢rations oi have M realistic èjtemtttive but io th) so. Page 5
REPORT OF THE INDEPENDEWt AUDITORS TOTHE TRUSTF.F.S OF SACIIKIIAND NAf4AK DHAM IDARSHAN DARBARI VK Our responsihilities for i&t gudit of the fitslmcial sla¢¢m¢nts We h&v¢ bc¢Tr Splted audirors under S¢otioJ) 144 of the Charities Aa 20112nd rewFrt itt acwrdan¢¢ wth th¢ A¢t aThd relevant gulalioDS nwde or h#viTh8 eifect thtreunder. Our obliVeS are to obtain T¢a50nable assurance aknut fillCIal statements LS a whole at¢ frcc from m8tsriAI misstarcm¢ni. wl)ctJKr duc to fraud orerroT. and to issue aR¢p)rt of th¢ Indendent Audilors intludes our opinion. R¢#ble ossurance is ahi8h level OrSrate. bul is nol a guarlee that an audit conducted in a¢wrdAllLf With ISAs(UKI always deteL a mttttrial mIeMent when il cxists. MÉsstalcmen15 clln arise from fraud QT ¢rroT aud aTe considered materia] it., individually or in Ibe 088Te8ate. Ih¢y Lvuld reAtlY be expethd to inIJu¢n¢¢ tbe ecDnO]ni¢ decisions of ws¢rs tsk¢n on th2 of IheÉe fittan¢i8J statcmcnis. iwlaritic4 in¢luding fraud, aTe inkantes of non.complian¢¢ with 18ws 8thd regulatiOll5. W¢ ¢k5igQ Ptocdute5 ith line wilh our respoD5ibiliti¢& outlined ai¥)ve, 10 dew'i Marial misstateJneM$ itt rtspecl ofirre8ularitie4 induding fiaud. Thc extent to whi¢h our pm¢edus art ¢apablc of del¢ctin8 iTr¢gulBriti¢% in¢luding frnud is d¢tailcd klow.. identifyin8 and assessing risks of tNt¢rial misstatern¢Tht in respect of irregu]ariti¢s, induding fraud artd not)-¢omplivnce with laws ¥nd regulation& o)nsiddrd TJK follow¥.. . lh¢ natur¢ ofth¢ dJrity ind se¢ior in wthi¢h li op¢r¢6 wDirol environm¢nt fiD&i&l trfornLancc in¢luditig tbe dE$ign of the iharitys systems and controls. . rcsults of our¢Dqiiiries Df mllnagementabout theirowi id¢ntifi¥xtion and sessMent0r the risksof IrregulltIes. . identrfying, evaluatijjg and complying with and tegulations and whcth¢rthey wert avmre of ally insthces of nort-compliance,. . detectingsnd responding to th¢ risks ot"IToud gnd whetherthey havc ktK)wlcdg¢ of any ackntsl. s$]ed or alleged frttuQ. - Iht inierngl ¢ontro15established to mitisak risks of fraud or nonwcomplionte with lawsgJ)d r¢gulations. These m¥tters were discu1 arJJoJJg the audit ¢nsag¢m¢nt tram rc8llrdirtE how and wtKrc fraud might occur in the fJnon¢iai stsiemcnis and Bny wtrteniittl indicators of fraud.As a Tewlt of thes¢ PTo¢edure& consid¢]rd the opF¥irtuniiies irJniives Ihat Lllay uist within Iht owHnisa¢ion for fraud. in commotk with all audiis und¢r ISA5 (UKI, w¢ albx) yequircd to p¢rfom) specific proceduresio Tcspond kn the Tisk of matwment overridc. We also obned an und¢rsthndift8 of the legsj regulatory frameworks that the Lhariiy operates in, fowsillg on provisio tsr IhD laws and regulaiions that had * direbl ¢ffeci on the detcTSnttiOTh of ]nai¢rial amounts and distlosures in thc financial slamtni$.'Ihe key and rcgulationy ¢onsid¢T¢d in this ¢ontext includcd th¢ UK tharity law dnd other releKgttt le8islatLOn. A Curther d¢wplion of our responsibilities for the audit of the fin&n¢i41 siaremcnts is iocat¢d ou th¢ Findncial Rewning Council's websit¢ at w%vw.fJr.urg.uklawJlrSresPQnSlb1J]Iic$. This descripiiun forms partof our Report of thc Intynd¢nt Auditors. Other mtter- eompar•liYt fre5 unlulIed The c4>mpar81ive ligures recorded in thc financial stst¢m¢nts relate to the year cn(kd 30 S¢pmbet 2021. These fi8iiies are unaudited. Il8t of our report This rep)rt is made solely lu the tharily's tnistees, 8s a body. UJ accordan¢¢ wth Part 4 of the Charities {Ac¢outtt8 and R¢rffi5} R¢gulations 2008. Our audit work been undertaken so that might Stat¢ to the eharily's knJees ihos¢ matt¢r3 required lo stsie Iv Ihem in an adItors, retx)rr fui nv other purp)se. -lo the fvlle5t cxt¢nl p¢rniitt¢d by lllw, do not A¢¢epi or assume SFNill5ibility to &rtyon¢ other than th¢ charity and the tharity's trUe¢S as a kndy? fvr our audit for this report, or for the opiniulls have fomie(L MpcalviDs Limilcd Chariered Accountsnis Stabtsiory AudiioTS 7 SiJohn's Road Harrow Middk5ex HAI 2EY Dat¢.. 202 Pa£¢ 6
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Other income 4 Total EXPENDITURE ON Raising funds 5 Other Total NET INCOME Other recognised gains/(losses) Gains on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment 9 As restated TOTAL FUNDS CARRIED FORWARD |
30.9.22 Unrestricted fund £ 421,915 21,327 96,112 539,354 286,872 - 286,872 252,482 50,500 302,982 4,341,280 (1,569,062) 2,772,218 3,075,200 |
30.9.21 Total funds as restated £ 464,040 21,360 42,855 |
|---|---|---|
| 528,255 | ||
| 183,918 - |
||
| 183,918 | ||
| 344,337 1,062,971 |
||
| 1,407,308 1,364,910 - |
||
| 1,364,910 | ||
| 2,772,218 |
The notes form part of these financial statements
Page 7
SACHKHAND NANAK DHAM (DARSHAIY DARBAR) UK BALANCE SHEET 30 SEPTEMBER 2012 30.9.22 30.9.21 Tthal fund5 fund FIXED ASSETS Tangible &8sets JnvcsthM¢ property io 5.518,919 555.5(K> 4.784.588 505,tMx 6.074.419 5,289,588 CURREprf ASSETS Debtors C&%h at bank in hand 12 86.101 102.484 1.786 316.366 186.585 318.352 CREDITORS Amounts f8Jling due within on¢ year 13 {447,7451 (1.026.259) NET CURRENT ASSETS 1259.1601 1707.9071 TOTAL ASSETS LESS CURRENT LIABILITILS 5.815,259 4.581.681 CREDITORS Amounls (ajling due aftu mor¢ than orK ye•r 14 12.740,0591 (1.809.463) NET ASSETS 3,075.21V) 2,772,218 FUNDS Unr#th¢ted fvnd5.' Generdl fund 17 3.075.21M) 2,772,218 TOTAL FUNDS 3.075.2(KJ 2,772,218 The finatlcial stai¢m¢nts [¢ approved by th¢ BO9 of TnJ5tCC5 and authoriscd for i&w¢ 00..... Si8ned on its behr by.. . and w•Y J S Bhambrd- Trusiee The no*s forni pon of these financia] Statem
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received Net cash used in investing activities Cash flows from financing activities New loans in year Loan repayments in year Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
30.9.22 £ 266,138 (75,563) 190,575 (739,453) 3,200 1 (736,252) 600,000 (268,405) 331,595 (214,082) 316,566 102,484 |
30.9.21 as restated £ 407,088 (60,778) 346,310 (1,158,975) - 4 (1,158,971) 931,000 (55,502) 875,498 62,837 253,729 316,566 |
|---|---|---|
The notes form part of these financial statements
Page 9
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| 30.9.22 | 30.9.21 | |
|---|---|---|
| as restated | ||
| £ | £ | |
| Net income for the reporting period (as per the Statement of Financial | ||
| Activities) | 252,482 | 344,337 |
| Adjustments for: | ||
| Depreciation charges | 1,923 | 1,263 |
| Interest received | (1) | (4) |
| Interest paid | 75,563 | 60,778 |
| Increase in debtors | (84,315) | (1,786) |
| Increase in creditors | 20,486 | 2,500 |
| Net cash provided by operations | 266,138 | 407,088 |
2.
ANALYSIS OF CHANGES IN NET DEBT
| Net cash Cash at bank and in hand Debt Debts falling due within 1 year Debts falling due after 1 year Total |
At 1.10.21 £ 316,566 316,566 (1,020,764) (1,809,463) (2,830,227) (2,513,661) |
Cash flow £ (214,082) (214,082) 599,000 (930,596) (331,596) (545,678) |
At 30.9.22 £ 102,484 102,484 (421,764) (2,740,059) (3,161,823) (3,059,339) |
|---|---|---|---|
The notes form part of these financial statements
Page 10
SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Changes in accounting policies
In the year to 30 September 2021 the trustees determined that the accounting policy for land and buildings should be changed to record land and buildings at market value. Previously land and buildings were recorded at cost less impairment.
In the absence of formal valuation reports from independent valuers for all properties the trustees have determined to take a prudent approach for the year ended 30 September 2022 and have determined that land and buildings should only be revalued in the financial statements where supported by independent valuation reports.
The policy now adopted by the trustees is therefore that freehold and leasehold land and buildings are recorded initially at cost and are periodically revalued on the basis of independent valuation reports. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
| Plant and machinery | - 20% on cost |
|---|---|
| Fixtures and fittings | - 20% on cost |
| Motor vehicles | - 20% reducing balance |
| Computer equipment | - 3 years straight line |
Freehold and leasehold land and buildings are recorded initially at cost and are periodically revalued on the basis of independent valuation reports. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Going concern
Where current liabilities exceed current assets the trustees consider the ability of the charity to meet its liabilities from liquid assets as and when the liabilities fall due for payment. The trustees also consider the support given to the charity by its members and creditors.
continued...
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
1. ACCOUNTING POLICIES - continued
Going concern
If the trustees are of the opinion that the charity can meet its liabilities as and when they fall due for payment, and has sufficient support from its members and creditors, the financial statements are prepared on a going concern basis.
2. DONATIONS AND LEGACIES
| Donations 3. INVESTMENT INCOME Rents received Deposit account interest 4. OTHER INCOME Other Income - Gid Aid Claim 5. RAISING FUNDS Raising donations and legacies Insurance Light and heat Telephone Postage, packing and carriage Event Costs Food and other supplies Rates and water charges Sundries Motor and travelling costs Repairs and maintenance Advertising and promotion Computer consumables Cleaning Support for spiritual teachers Depreciation Support costs |
30.9.22 a £ 421,915 30.9.22 a £ 21,326 1 21,327 30.9.22 a £ 96,112 30.9.22 a £ 5,113 26,424 4,075 742 28,239 24,046 12,572 2,929 16,294 8,970 17,100 331 - 19,973 1,923 118,141 286,872 |
30.9.21 s restated £ 464,040 |
|---|---|---|
| 30.9.21 s restated £ 21,356 4 21,360 30.9.21 s restated £ 42,855 30.9.21 s restated £ 2,615 8,812 1,537 1,149 12,298 7,069 5,032 999 9,778 37,334 175 17 78 - 1,263 95,762 |
||
| 183,918 |
continued...
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
6. SUPPORT COSTS
| SUPPORT COSTS | |||
|---|---|---|---|
| Governance | |||
| Finance | costs | Totals | |
| £ | £ | £ | |
| Raising donations and legacies | 75,563 | 42,578 | 118,141 |
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the year ended 30 September 2021.
Trustees' expenses
During the year to 30 September 2022 the charity paid expenses of £19,973 to Mr T Das to support him whilst undertaking religious and spiritual duties in the UK (2021: nil).
Mr T Das is a trustee of the charity.
During the year to 30 September 2022 the charity made payments of £20,000 to SND Electrical Wholesalers (UK) Limited for electrical goods supplied to the charity (2021: nil).
The balance payable to SND Electrical Wholesalers (UK) Limited at 30 September 2022 was nil (2021: nil).
Mr J S Bhambra is a trustee of the charity and is a director and shareholder in SND Electrical Wholesalers (UK) Limited.
No other payments or reimbursement of expenses were made to trustees during the year ended 30 September 2022. No payments or reimbursement of expenses were made to trustees during the year ended 30 September 2021.
8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| fund | |
| as restated | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Donations and legacies | 464,040 |
| Investment income | 21,360 |
| Other income | 42,855 |
| Total | 528,255 |
| EXPENDITURE ON | |
| Raising funds | 183,918 |
| Other | - |
| Total | 183,918 |
| NET INCOME | 344,337 |
| Other recognised gains/(losses) | |
| Gains on revaluation of fixed assets | 1,062,971 |
| Net movement in funds | 1,407,308 |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward | 1,364,910 |
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| Unrestricted | |
|---|---|
| fund | |
| as restated | |
| £ | |
| TOTAL FUNDS CARRIED FORWARD | 2,772,218 |
9. PRIOR YEAR ADJUSTMENT
In the year to 30 September 2021 the trustees determined that the accounting policy for land and buildings should be changed to record land and buildings at market value. Previously land and buildings were recorded at cost less impairment.
As at 30 September 2021 the trustees valued land and buildings at £6,350,000. This figure was included in the financial statements for the year ended 30 September 2021.
In the absence of formal valuation reports from independent valuers for all properties the trustees have determined to take a prudent approach for the year ended 30 September 2022 and have determined that land and buildings should only be revalued in the financial statements where supported by independent valuation reports.
On this basis the trustees have restated the value for land and buildings at 30 September 2021 at £4,780,938.
A prior year adjustment of £1,569,062 has therefore been recognised in the financial statements for the year ended 30 September 2022. The prior year adjustment has the effect of reducing unrestricted reserves by £1,569,062.
10. TANGIBLE FIXED ASSETS
| COST At 1 October 2021 Additions Disposals At 30 September 2022 DEPRECIATION At 1 October 2021 Charge for year At 30 September 2022 NET BOOK VALUE At 30 September 2022 At 30 September 2021 |
Freehold property £ 4,780,938 728,721 - 5,509,659 - - - 5,509,659 4,780,938 |
Plant and machinery £ - 1,425 - 1,425 - 214 214 1,211 - |
Fixtures and fittings £ 21,939 - - |
|---|---|---|---|
| 21,939 | |||
| 21,939 - |
|||
| 21,939 | |||
| - | |||
| - |
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
10. TANGIBLE FIXED ASSETS - continued
| COST At 1 October 2021 Additions Disposals At 30 September 2022 DEPRECIATION At 1 October 2021 Charge for year At 30 September 2022 NET BOOK VALUE At 30 September 2022 At 30 September 2021 |
Motor vehicles £ 4,500 - (3,200) 1,300 1,125 175 1,300 - 3,375 |
Computer equipment £ 413 9,307 - 9,720 138 1,533 1,671 8,049 275 |
Totals £ 4,807,790 739,453 (3,200) |
|---|---|---|---|
| 5,544,043 | |||
| 23,202 1,922 |
|||
| 25,124 | |||
| 5,518,919 | |||
| 4,784,588 |
In the year to 30 September 2021 the trustees determined that the accounting policy for land and buildings should be changed to record land and buildings at market value. Previously land and buildings were recorded at cost less impairment.
As at 30 September 2021 the trustees valued land and buildings at £6,350,000. This figure was included in the financial statements for the year ended 30 September 2021.
In the absence of formal valuation reports from independent valuers for all properties the trustees have determined to take a prudent approach for the year ended 30 September 2022 and have determined that land and buildings should only be revalued in the financial statements where supported by independent valuation reports.
On this basis the trustees have restated the value for land and buildings at 30 September 2021 at £4,780,938.
Freehold land and buildings include a property which is now considered to be surplus to requirements. This property has now been offered for sale. This property is included in the financial statements at a value of £1,656,876.
11. INVESTMENT PROPERTY
| FAIR VALUE At 1 October 2021 Revaluation At 30 September 2022 NET BOOK VALUE At 30 September 2022 At 30 September 2021 |
£ 505,000 50,500 |
|---|---|
| 555,500 | |
| 555,500 | |
| 505,000 |
The trustees have valued the investment property at 30 September 2021 and at 30 September 2022 using rental yield calculations and information on property price inflation available from the Office for National Statistics.
Fair value at 30 September 2022 is represented by:
| Valuation in 2022 Valuation in 2021 Cost |
£ 50,500 72,971 432,029 |
|---|---|
| 555,500 |
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other debtors - Gift Aid Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans and overdrafts (see note 15) Trade creditors Other creditors 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank loans (see note 15) Other creditors 15. LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Bank loans Other loans Amounts falling between one and two years: Bank loans - 1-2 years Amounts falling due between two and five years: Bank loans - 2-5 years Other loans - 2-5 years Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal |
30.9.22 £ 86,101 - 86,101 30.9.22 £ 121,764 2,811 323,170 447,745 30.9.22 £ 2,318,059 422,000 2,740,059 30.9.22 £ 121,764 300,000 421,764 121,764 365,291 422,000 787,291 1,831,004 |
30.9.21 as restated £ - 1,786 1,786 30.9.21 as restated £ 89,764 2,496 933,999 |
|---|---|---|
| 1,026,259 | ||
| 30.9.21 as restated £ 1,809,463 - |
||
| 1,809,463 | ||
| 30.9.21 as restated £ 89,764 931,000 |
||
| 1,020,764 | ||
| 89,764 | ||
| 269,291 - |
||
| 269,291 | ||
| 1,450,408 |
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
16. SECURED DEBTS
The following secured debts are included within creditors:
| 30.9.22 | 30.9.21 | |
|---|---|---|
| as restated | ||
| £ | £ | |
| Bank loans | 2,439,823 | 1,899,227 |
The bank loans recorded in the financial statements of £2,439,823 are secured by way of legal charges over four properties owned by the charity.
These properties are recorded in the financial statements at a combined value of £5,338,389.
17. MOVEMENT IN FUNDS
| At 1.10.21 £ Unrestricted funds General fund 4,341,280 TOTAL FUNDS 4,341,280 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 539,354 TOTAL FUNDS 539,354 Comparatives for movement in funds Unrestricted funds General fund TOTAL FUNDS |
Prior year adjustment £ (1,569,062) (1,569,062) Resources expended £ (286,872) (286,872) At 1.10.20 £ 1,364,910 1,364,910 |
Net movement in funds £ 302,982 302,982 Gains and losses £ 50,500 50,500 Net movement in funds £ 1,407,308 1,407,308 |
At 30.9.22 £ 3,075,200 |
|---|---|---|---|
| 3,075,200 | |||
| Movement in funds £ 302,982 302,982 At 30.9.21 £ 2,772,218 |
|||
| 2,772,218 |
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
17. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 528,255 528,255 |
Resources expended £ (183,918) (183,918) |
Gains and losses £ 1,062,971 1,062,971 |
Movement in funds £ 1,407,308 |
|---|---|---|---|---|
| 1,407,308 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.10.20 £ 1,364,910 1,364,910 |
Prior year adjustment £ (1,569,062) (1,569,062) |
Net movement in funds £ 1,710,290 1,710,290 |
At 30.9.22 £ 1,506,138 |
|---|---|---|---|---|
| 1,506,138 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 1,067,609 TOTAL FUNDS 1,067,609 |
Resources Gains and Movement expended losses in funds £ £ £ (470,790) 1,113,471 1,710,290 (470,790) 1,113,471 1,710,290 |
|---|---|
18. RELATED PARTY DISCLOSURES
During the year to 30 September 2022 the charity made payments of £20,000 to SND Electrical Wholesalers (UK) Limited for electrical goods supplied to the charity (2021: nil).
The balance payable to SND Electrical Wholesalers (UK) Limited at 30 September 2022 was nil. (2021: nil)
Mr J S Bhambra is a trustee of the charity and is a director and shareholder in SND Electrical Wholesalers (UK) Limited.
19. GOING CONCERN
The financial statements have been prepared on a going concern basis notwithstanding the fact that there are net current liabilities of £259,160 at 30 September 2022 (2021: £707,907).
Included in creditors: amounts falling due within one year is a short-term loan of £300,000 provided by members and adherents of the faith community (2021: various loans totalling £931,000).The loan for £300,000 was repaid in September 2023 and the charity obtained further loans from members and adherents of the faith community to enable the repayment to be made. These further loans are not due for repayment before January 2025.
Freehold land and buildings include a property which is now considered to be surplus to requirements. This property has now been offered for sale. This property is included in the financial statements at a value of £1,656,876 and is being marketed at offers over £1,650,000.
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SACHKHAND NANAK DHAM (DARSHAN DARBAR) UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
19. GOING CONCERN - continued
The charity has two bank loans and the total outstanding on these loans at 30 September 2022 was £2,439,823 (2021: £1,899,227). These loans are repayable over terms of 21 years and 19 years respectively.The annual commitment for repayment of these loans (capital and interest) does not exceed £225,000.
The trustees are confident that the charity has adequate funding to meet its ongoing commitments and accordingly the financial statements have been prepared on a going concern basis.
Page 19