Company registration number: 03515191 Charity registration number: 1074558
## G G S KHALSA COLLEGE LIMITED
(A company limited by guarantee)
Annual Report and Financial Statements
for the period from 1 September 2022 to 31 January 2024
Tahas & Co Ltd Chartered Certified Accountant and Registered Auditors Suite 3, Second Floor 760 Eastern Avenue Newbury Park London IG2 7HU
## **G G S KHALSA COLLEGE LIMITED**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 4|
|Independent Auditors' Report|5 to 6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 to 15|
## **G G S KHALSA COLLEGE LIMITED**
## **Reference and Administrative Details**
**Trustees** Mrs Balbinder Kaur Gill Mr Baldev Singh Bains **Charity Registration Number** 1074558 **Company Registration Number** 03515191 **Registered Office** The School House-GGSK College Roding lane Chigwell Essex IG7 6BH **Auditor** Tahas & Co Ltd Chartered Certified Accountant and Registered Auditors Suite 3, Second Floor 760 Eastern Avenue Newbury Park London IG2 7HU
Page 1
## **G G S KHALSA COLLEGE LIMITED**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the period ended 31 January 2024.
## **Objectives and activities**
## _**Objects and aims**_
The main objective of the charity is to provide high quality, affordable education to children in the local catchment area, which is sympathetic to traditiona and culture of the Sikh community.
## _**Fundraising disclosures**_
The main fund raising activites for the Charity is from school fees.
## _**Public benefit**_
There are no further activities undertaken other then main activities.
The trustees have considered the charity commission;s guidence on public benefit, including the guidence public benefit: running a charity (PB2).
## **Financial review**
The Trustees have reviewed the financial position of the Charity, after delibreation had decided to close the school. This was mainly due to reduction in Children numbers and increasing costs.
## **Going concern**
The Trustees have carefully considered the financial position of the school and its ability to continue as a going concern. After significant deliberation, the Trustees have concluded that the school is no longer viable due to the ongoing challenges posed by the current economic climate and a sustained decline in student enrollment.
The reduction in student numbers has had a substantial impact on the school's financial performance, reducing tuition income to a level that is insufficient to cover operating costs. Despite efforts to identify and implement cost-saving measures, the Trustees have been unable to secure sufficient additional funding or alternative revenue streams to offset these financial pressures.
In light of these circumstances, the Trustees have made the difficult decision to close the school. Plans were being developed and implemented to ensure the orderly winding up of the school’s activities and to minimize the impact on staff, students, and the wider community.
The Trustees confirm that all obligations to creditors havel been met to the fullest extent possible, and all necessary steps have been taken to ensure compliance with legal and regulatory requirements during the closure process.
Given these considerations, the Trustees have concluded that the school is no longer a going concern, and the financial statements have been prepared on a basis other than that of a going concern. Appropriate adjustments have been made to reflect the anticipated realization of assets and settlement of liabilities in the context of the school’s closure.
The Trustees wish to express their sincere gratitude to the staff, students, parents, and community for their unwavering support and dedication over the years.
## **Trustees and officers**
Page 2
## **G G S KHALSA COLLEGE LIMITED**
## **Trustees' Report**
The trustees and officers serving during the year and since the year end were as follows:
Trustees: Mrs Balbinder Kaur Gill Mr Baldev Singh Bains
## **Structure, governance and management**
## _**Nature of governing document**_
The charity is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association. Ultimately there is no overall controlling party.
## _**Organisational structure**_
The Trustees pledge to regularly meet to review the charities affairs
The trustees have been made aware of their responsibilities regarding reviewing and combating the major risks to which the charity is exposed. Systems are in place to try to mitigate these risk, but have not been fully enacted in the year. Whilst some improvements in operation of internal controls were identified during the course of the recent audit, the auditors have highlighted further control weaknesses regarding segregation of duties, authorisation,review by responsible persons ans an over reliance on cash transactions. The Trustees will endeavour to ensure that the control weaknesses are improved and seek to minimise cash rransactions.
## **Statement of trustees' responsibilities**
The trustees (who are also the directors of G G S KHALSA COLLEGE LIMITED for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
Company law requires the trustees to prepare financial statements for each financial period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Small companies provision statement**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Page 3
## **G G S KHALSA COLLEGE LIMITED**
## **Trustees' Report**
The annual report was approved by the trustees of the charity on 31 October 2024 and signed on its behalf by:
......................................... Mrs Balbinder Kaur Gill Trustee
Page 4
## **G G S KHALSA COLLEGE LIMITED**
## **Independent Auditors' Report to the Members of G G S KHALSA COLLEGE LIMITED**
We have audited the financial statements of G G S KHALSA COLLEGE LIMITED for the period from 1 September 2022 to 31 January 2024, which comprise the Statement of Financial Activities, Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)).
This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Respective responsibilities of trustees and auditors**
As explained more fully in the Statement of trustees' responsibilities (set out on page 3), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
## **Scope of the audit of the financial statements**
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
## **Opinion on the financial statements**
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 January 2024 and of its results for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Opinion on other matter prescribed by the Companies Act 2006**
In our opinion the information given in the for the financial period for which the financial statements are prepared is consistent with the financial statements.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Page 5
## **G G S KHALSA COLLEGE LIMITED**
## **Independent Auditors' Report to the Members of G G S KHALSA COLLEGE LIMITED**
...................................... M Poonawala (Senior Statutory Auditor) For and on behalf of Tahas & Co Ltd, Chartered Certified Accountants and Registered Auditor Suite 3, Second Floor 760 Eastern Avenue Newbury Park London IG2 7HU
31 October 2024
Page 6
## **G G S KHALSA COLLEGE LIMITED**
## **Statement of Financial Activities for the Period from 1 September 2022 to 31 January 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Unrestricted**
**funds**
**£**
22,852
1,558,556
1,581,408
(1,607,914)
(1,607,914)
(26,506)
(26,506)
26,840
334
**Unrestricted**
**funds**
**£**
30,702
1,524,903
1,555,605
(1,812,826)
(1,812,826)
(257,221)
(257,221)
284,060
26,839|**Total**
**2024**
**£**
22,852
1,558,556|
|---|---|---|
|||1,581,408|
|||(1,607,914)|
|||(1,607,914)|
|||(26,506)|
|||(26,506)
26,840|
|||334|
|||**Total**
**2022**
**£**
30,702
1,524,903|
|||1,555,605|
|||(1,812,826)|
|||(1,812,826)|
|||(257,221)|
|||(257,221)
284,060|
|||26,839|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note .
The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
## **G G S KHALSA COLLEGE LIMITED**
## **(Registration number: 03515191) Balance Sheet as at 31 January 2024**
|**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
12
**Creditors: Amounts falling due within one year**
13
**Net current assets/(liabilities)**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**|**2024**
**£**
-
-
4,038
4,038
(3,704)
334
334
334
334|**2022**
**£**
90,549
57,388
62,578|
|---|---|---|
|||119,966
(183,676)|
|||(63,710)|
|||26,839|
|||26,839|
|||26,839|
For the financial period ending 31 January 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the period in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on 31 October 2024 and signed on their behalf by:
......................................... Mrs Balbinder Kaur Gill Trustee
The notes on pages 9 to 15 form an integral part of these financial statements. Page 8
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
## **1 Charity status**
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.
The address of its registered office is: The School House-GGSK College Roding lane Chigwell Essex IG7 6BH
These financial statements were authorised for issue by the trustees on 31 October 2024.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Basis of preparation**
G G S KHALSA COLLEGE LIMITED meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The financial statements has not been prepared on a going concern basis.
The trustees have carefully considered the financial position of the school and its ability to continue as a going concern. After significant deliberation, the Trustees have concluded that the school is no longer viable due to the ongoing challenges posed by the current economic climate and a sustained decline in student enrollment.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Page 9
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation on tangible assets are 25% on reducing balance basis. There is no policy for revaluation of fixed assets.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **Research and development**
Research and development expenditure is written off as incurred.
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Page 10
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
## **3 Income from donations and legacies**
|Grants, including capital grants;
Grants receivable
**4**
**Income from charitable activities**
Term fees
Other income
**5**
**Expenditure on charitable activities**
**Note**|**Unrestricted**
**funds**
**General**
**£**
22,852
22,852
**Unrestricted**
**funds**
**General**
**£**
1,529,094
29,462
1,558,556
**Unrestricted**
**funds**
**General**
**£**|**Total**
**2024**
**£**
22,852
22,852
**Total**
**2024**
**£**
1,529,094
29,462
1,558,556
**Total**
**2024**
**£**|**Total**
**2022**
**£**
30,702|
|---|---|---|---|
||||30,702|
||||**Total**
**2022**
**£**
1,501,228
23,675|
||||1,524,903|
||||**Total**
**2022**
**£**|
Page 11
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
|**Note**
Staff costs
Study material and exam fees
Premises costs
Term fees discount
School kitchen catering
Motor expenses
Sundry office expenses
Depreciation, amortisation and other
similar costs
Governance costs|**Unrestricted**
**funds**
**General**
**£**
1,149,097
49,999
108,616
94,243
11,863
74,543
2,828
68,083
48,642
1,607,914|**Total**
**2024**
**£**
1,149,097
49,999
108,616
94,243
11,863
74,543
2,828
68,083
48,642
1,607,914|**Total**
**2022**
**£**
1,102,271
102,001
130,877
264,930
17,154
107,718
1,198
30,185
56,492|
|---|---|---|---|
||||1,812,826|
## **6 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
## **7 Staff costs**
The monthly average number of persons (including senior management / leadership team) employed by the charity during the period expressed as full time equivalents was as follows:
|charity during the period expressed as full time equivalents was as follows:|||
|---|---|---|
|Administration Staff
Teachers
Kitchen staff
Drivers|**2024**
**No**
3
26
4
4
37|**2022**
**No**
3
33
3
3|
|||42|
During the period, the charity made redundancy and/or termination payments which totalled £171,925 (2022 - £Nil).
No employee received emoluments of more than £60,000 during the period.
Page 12
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
## **8 Auditors' remuneration**
Audit of the financial statements
|**2024**|**2022**|
|---|---|
|**£**|**£**|
|4,800|4,800|
Page 13
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
## **9 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **10 Tangible fixed assets**
|**Cost**
At 1 September 2022
Disposals
At 31 January 2024
**Depreciation**
At 1 September 2022
Charge for the year
Eliminated on disposals
At 31 January 2024
**Net book value**
At 31 January 2024
At 31 August 2022
**11 Debtors**
Other debtors
**12 Cash and cash equivalents**
Cash on hand
Cash at bank|**Furniture and**
**equipment**
**£**
84,541
(84,541)
-
158,722
5,411
(164,133)
-
-
(74,181)|**Motor vehicles**
**£**
124,118
(124,118)
-
109,544
5,162
(114,706)
-
-
14,574|**Motor vehicles**
**£**
124,118
(124,118)
-
109,544
5,162
(114,706)
-
-
14,574|**Other tangible**
**fixed asset**
**£**
509,336
(509,336)
-
448,640
21,497
(470,137)
-
-
60,696
**2024**
**£**
-
**2024**
**£**
-
4,038
4,038|**Other tangible**
**fixed asset**
**£**
509,336
(509,336)
-
448,640
21,497
(470,137)
-
-
60,696
**2024**
**£**
-
**2024**
**£**
-
4,038
4,038|**Total**
**£**
717,995
(717,995)
-
716,906
32,070
(748,976)
-
-
1,089
**2022**
**£**
57,388|
|---|---|---|---|---|---|---|
|||-||-|||
|||-||-|||
|||14,574||60,696|||
|||||**2024**
**£**
-
**2024**
**£**
-
4,038
4,038|||
|||||||**2022**
**£**
45,725
16,853|
|||||||62,578|
**13 Creditors: amounts falling due within one year**
Page 14
## **G G S KHALSA COLLEGE LIMITED**
## **Notes to the Financial Statements for the Period from 1 September 2022 to 31 January 2024**
|Other taxation and social security
Other creditors
Accruals
**14 Analysis of net assets between funds**
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**2024**
**£**
(1,096)
-
4,800
3,704
**Unrestricted**
**funds**
**General**
**£**
4,038
(3,704)
334
**Unrestricted**
**funds**
**General**
**£**
90,549
119,966
(183,676)
26,839|**2022**
**£**
25,238
143,097
15,341|
|---|---|---|
|||183,676|
|||**Total funds at**
**31 January**
**2024**
**£**
4,038
(3,704)|
|||334|
|||**Total funds at**
**31 August**
**2022**
**£**
90,549
119,966
(183,676)|
|||26,839|
## **15 Related party transactions**
There were no related party transactions in the period.
Page 15