DIVINE ONKAR MISSION
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021
Charity Commission Reference No: 1074527 Company Registered No: 3566158
DIVINE ONKAR MISSION
DRAYTON STREET Wolverhampton WV2 4EA
CONTENTS
| Page | |
|---|---|
| Charity information | 1 |
| Trustees' Report | 2-3 |
| Accountants' Report | 4 |
| Statement of Financial Activities | 5-6 |
| Income and Expenditure Account | 7 |
| Balance Sheet | 8 |
| Notes to the accounts | 9-12 |
DIVINE ONKAR MISSION
SIGNIFICANT INFORMATION
Divine Onkar Mission is established as a company limited by guarantee (Company Registered No: 3566158) and is registered as a charity with the Charity Commission England and Wales (Reg No: 1074527). The affairs of the association are governed by its memorandum and articles of association. The liability of the members in the event of the Association being wound up is limited to a sum not exceeding £1.
REGISTERED OFFICE
Drayton Street Wolverhampton WV2 4EA
BANKERS
Barclays Bank Plc Bank House 1A Chapel Ash Wolverhampton WV3 0TL
HSBC Bank Plc 9 Queen Square Wolverhampton WV1 1TE
Punjab National Bank 502-504 DudleyRoad Wolverhampton WV2 3AA
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DIVINE ONKAR MISSION
Independent Examiner's Report to the Trustees of Divine Onkar Mission
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 May 2021 which are set out on pages 5 to 12
Responsibilities and basis of report
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants
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:
-
accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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 accounts to be reached.
MAHMOOD AHED CHARTERED CERTIFIED ACCOUNTANT
784 Alum Rock Road Ward End Birmingham B8 2TE
25 November 2021
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DIVINE ONKAR MISSION
Company Registered No: 3566158 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2021
| Income | 2021 | 2020 | |
|---|---|---|---|
| Income and endowments from | Unrestricted | Unrestricted | |
| funds | funds | ||
| £ | £ | ||
| Donations and legacies | |||
| Donations received | 143,648 | 182,208 | |
| HMRC Gift Aid receipt | 18,499 | 23,096 | |
| Income from charitable activities | |||
| Shop sale | 30,631 | 53,487 | |
| Investment income | |||
| Bank deposit Interest receivable | 458 | 708 | |
| Rent receivable | 86,090 | 73,698 | |
| Other income | 16,317 | 3,838 | |
| ----------- | ----------- | ||
| Total | 295,643 | 337,035 | |
| ====== | ====== | ||
| Expenditure | |||
| Expenditure on charitable activities | |||
| Amount sent to partner organisations in India | |||
| for operational programmes | 120,000 | 157,000 | |
| Other Donations | 43 | 3,295 | - |
| Governance and support cost | |||
| Employees cost | 57,613 | 69,665 | |
| Rates and water | 7,257 | 2,852 | |
| Insurance | 5,362 | 5,153 | |
| Heat and light | 3,273 | 7,108 | |
| Telephone | 1,217 | 1,189 | |
| Print, post and stationery | 425 | 680 | |
| Computer and website cost | - | 541 | |
| Repairs and renewals | 4,559 | 1,098 | |
| Motor and travelling expenses | 3,485 | 4,282 | |
| Promotion and advertising | - | 101 | |
| Sundry expenses | 534 | 651 | |
| Bank charges | 184 | 165 | |
| Legal and professional fee | - | 230 | |
| Accountancy fees | 700 | 700 | |
| Loss on disposal of fixed asset | - | 725 | |
| Depreciation: motor vehicles | 2,047 | 2,729 | |
| Depreciation: fixtures and fittings | 793 | 792 | |
| Depreciation: Freehold property | 1,700 | 1,700 | |
| ------------ | ------------ | ||
| Total | 209,192 | 260,656 | |
| ======= | ======= |
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Continued 6 DIVINE ONKAR MISSION
Company Registered No: 3566158
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2021 (Continued)
| 2021 | 2020 | |
|---|---|---|
| Net Incoming Resources for the year | 86,451 | 76,379 |
| ------------ | ----------- | |
| NET MOVEMENT IN FUNDS | 86,451 | 76,379 |
| RECONCILIATION OF FUNDS | ||
| Funds balance brought forward | 2,706,221 | 2,629,842 |
| -------------- | ------------- | |
| Fund balance carried forward | 2,792,672 | 2,706,221 |
| ======== | ======= |
The statement of financial activities includes all gains and losses recognized in the year. All incoming resources and resources expended derive from continuing activities
The notes on pages 9 to 12 form part of these accounts
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DIVINE ONKAR MISSION
Company Registered No: 3566158
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MAY 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Notes | £ | £ | |
| INCOME | |||
| Donations | 2 | 162,147 | 205,304 |
| Charitable activities | 30,631 | 53,487 | |
| Interest and investment income | 3 | 86,548 | 74,406 |
| Other income | 16,317 | 3,838 | |
| ------------ | ---------- | ||
| Gross Income | 295,643 | 337,035 | |
| ======= | ====== | ||
| EXPENDITURE | |||
| Expenditure on charitable activities | 120,043 | 160,295 | |
| Governance and support cost | 89,149 | 100,361 | |
| ----------- | ---------- | ||
| Total expenditure | 209,192 | 260,656 | |
| ======= | ====== | ||
| Net Income for the year | 86,451 | 76,379 | |
| Funds balance brought forward | 2,706,221 | 2,629,842 | |
| ------------- | ------------- | ||
| Funds balance carried forward | 2,792,672 | 2,706,221 | |
| ======== | ======== |
The statement of financial activities includes all gains and losses recognized in the year. All incoming resources and resources expended derive from continuing activities, and the reported surplus was found under the historical cost convention.
The notes on page 9 to 12 form an integral part of these accounts.
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DIVINE ONKAR MISSION
Company Registered No: 3566158
BALANCE SHEET AS AT 31 MAY 2021
| BALANCE SHEET AS AT 31 MAY 2021 |
|||||
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 5 | 324,400 | 328,134 | ||
| Investments | 6 | 1,791,768 | 1,791,768 | ||
| ------------- | ------------- | ||||
| 2,116,168 | 2,119,902 | ||||
| CURRENT ASSETS | |||||
| Fixed term deposits | 200,000 | 200,000 | |||
| Cash at bank and in hand | 483,519 | 390,500 | |||
| ----------- | ------------- | ||||
| 683,519 | 590,500 | ||||
| CREDITORS:Amounts falling due | |||||
| within one year | 7 | 7,015 | 4,181 | ||
| ------------- | ------------- | ||||
| TOTAL ASSETS LESS | |||||
| CURRENT LIABILITIES | 676,504 | 586,319 | |||
| ------------- | ------------ | ||||
| TOTAL ASSETSLESS | |||||
| CURRENT LIABILITIES | 2,792,672 | 2,706,221 | |||
| ======== | ======= | ||||
| FUNDS | |||||
| General funds | 8 | 2,792,672 | 2,706,221 | ||
| ------------- | ------------- | ||||
| 2,792,672 | 2,706,221 | ||||
| ======== | ======== |
For the year ended 31 May 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved by the board of directors on 25 November 2021 and signed on their behalf by:
..........................................Charanjit Singh
DIRECTOR/TRUSTEE
The notes on pages 9 to 12 form an integral part of these accounts.
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DIVINE ONKAR MISSION
Company Registered No: 3566158 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021
Summary of significant accounting policies
1. Basis of preparation
1.1 Basis of accounting
The accounts have been prepared in accordance with the Statement of Recommended Practice: 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) issued on 16 July 2014
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accountancy policy notes.Where necessary the headings laid down in the Companies Act have been adapted to meet the special activities of the Association.
The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS102 Section 1A
The financial statements are prepared on a going concern basis under the historical cost convention The financial statement s are prsented in sterling which is the functional currency of the charity.
The charity constitutes a public benefit entity as defined by FRS 102.
1.2 Income
Income recognition
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Grants and donations
Grants and donations are only included in the SoFA when the general income recognition criteria are met. Revenue grants are credited to the income and expenditure account as received, unless related to a specific period, when it is placed in a restricted funds until it is used.
1.3 Gifts in kind
The charity receives the benefit of work carried out by volunteers, and receives the use of facility and equipment without charge. No value is placed on these items, where the benefit extends over several periods, in which case they are valued and included in the balance sheet at a reasonable valuation.
1.4 Tax reclaims on donations and gifts
Gift aid receivable is included in income when there is a valid declaration from the donor. Any gift aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise
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DIVINE ONKAR MISSION
Company Registered No: 3566158 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021
1.5 Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. As a registered charity, the company benefits from Rates but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
1.6 Depreciation
Depreciation of fixed assets is provided at the following annual rates in order to write off each asset over its estimated useful life:
Freehold building 1/2% on cost Fixtures, fittings & equipment 15% reducing balance Motor vehicles 25% reducing balance
No depreciation is provided on freehold land
1.7 Investment Properties
Investment properties for which fair value can be measured reliably are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.
1.8 Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably
| can be measured reliably | |||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| 2. | DONATIONS AND GIFTS | ||
| Donations received | 123,203 | 165,155 | |
| Collection boxes receipts | 20,445 | 17,053 | |
| HMRC Gift Aid receipt | 18,499 | 23,096 | |
| ---------- | ---------- | ||
| 162,147 | 205,304 | ||
| ====== | ====== | ||
| 3 | INVESTMENT INCOME | ||
| Interest receivable | 458 | 708 | |
| Rent receivable | 86,090 | 73,698 | |
| ====== | ===== | ||
| 4. | MANAGEMENT AND ADMINISTRATION | ||
| Emoluments of employees | 39,821 | 36,837 | |
| Accountants remuneration | 700 | 700 | |
| ===== | ===== |
The average monthly number of employees and full time equivalent (FTE) during the year was 3 (2020-3)
The trustees neither received nor waived any emoluments during the year (2020- nil)
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DIVINE ONKAR MISSION
Company Registered No: 3566158 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021
5. TANGIBLE FIXED ASSETS
| Freehold | Motor | Fixtures & | |||
|---|---|---|---|---|---|
| property | vehicle | fittings | Total | ||
| £ | £ | £ | £ | ||
| Cost | |||||
| As at 31/5/20 | 339,915 | 20,220 | 33,205 | 393,340 | |
| Addition | - | 806 | 806 | ||
| ---------- | --------- | --------- | ---------- | ||
| As at 31/5/21 | 339,915 | 20,220 | 34,011 | 394,146 | |
| ====== | ====== | ====== | ====== | ||
| Depreciation | |||||
| As at 31/5/20 | 24,450 | 12,034 | 28,722 | 65,206 | |
| Charge for year | 1,700 | 2,047 | 793 | 4,540 | |
| On disposal | - | - | |||
| ---------- | ---------- | ---------- | ---------- | ||
| 26,150 | 14,081 | 29,515 | 69,746 | ||
| As at 31/5/21 | ====== | ======= | ====== | ====== | |
| Net book value | 313,765 | 6,139 | 4,496 | 324,400 | |
| At 31/05/21 | ====== | ====== | ======= | ====== | |
| At 31/5/20 | 315,465 | 8,186 | 4,483 | 328,134 | |
| ====== | ====== | ======= | ====== | ||
| 2021 | 2020 | ||||
| £ | £ | ||||
| 6. | FIXED ASSETS | INVESTMENTS (Note 1.7) | |||
| Investment properties @01/06/20 | 1,791,768 | 1,370,028 | |||
| Addition | - | 421,740 | |||
| ----------- | ------------ | ||||
| Investment properties @ 31/5/21 | 1,791,768 | 1,791,768 | |||
| ======= | ======= |
Investment properties for which fair value can be measured reliably are measured at fair value at each reporting date. The 2021 valuation was made by the
directors/trustees on an fair value basis and it was considered that the difference was not material from historical cost
| 7. | CREDITORS: Amounts falling due | ||
|---|---|---|---|
| within one year | |||
| Other creditors | 7,015 | 4,181 | |
| ---------- | --------- | ||
| 7,015 | 4,181 | ||
| ====== | ====== |
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DIVINE ONKAR MISSION
Company Registered No: 3566158 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MAY 2021
8. FUNDS
| FUNDS | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| funds | funds | |
| Opening | 2,706,221 | 2,629,842 |
| Incoming resources | 295,643 | 337,035 |
| Outgoing resources | (209,192) | (260,656) |
| ------------ | ------------- | |
| 2,792,672 | 2,706,221 | |
| ======= | ======== | |
| Represented by | ||
| Tangible fixed assets | 2,116,168 | 2,119,902 |
| Net current assets | 676,504 | 586,319 |
| -------------- | ----------- | |
| 2,792,672 | 2,706,221 | |
| ========= | ======= |
The charity maintains a general unrestricted fund which represents funds which are expendable at the discretion of the trustees in furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment. There is no formal policy of transfer between funds or on the allocation of funds to designated funds.
9. PARTNER ORGANISATIONS AND OPERATIONAL PROGRAMMES
The Charity operates several charitable operational programmes through partner organisations in India and the grants were remitted to The Onkar Hospital in Ramgargh, Jharkhand State, the Leprosy project in Delhi and similar project in the State of Orrisa.The charity now also provide financial support for the operational programmes for school and college for the benefit of childern in the local community.The Charity also support orphanages and old aged homes in India.
10. GOING CONCERN
As explained in the Trustees Report although the disruption caused by Coronavirus and lower expected income, Trustee’s are satisfied that the charity will be able to continue its activities possibly at lower scale when it is allowed to reopen.. Also there should be no impact on charities reserve policy.
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