## **BAIS MALKA LIMITED**
## **LIMITED BY GUARANTEE**
**DIRECTORS’ AND TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **COMPANY NUMBER 06407566(England and Wales) CHARITY NUMBER 1125696**
**B Olsberg & Co**
Chartered Accountants & Statutory Auditor Enterprise House 3 Middleton Road Manchester M8 5DT
## **BAIS MALKA LIMITED**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
|**Page**||
|---|---|
|Legal and Administrative Information|1|
|Report of the trustees|2|
|Statement of financial activities|4|
|Statement of financial position|5|
|Statement of Cash Flows|6|
|Notes to the financial statements|7|
|Auditor’s report
|9|
## **BAIS MALKA LIMITED**
## **Legal and Administrative Information**
|Directors and Trustees|H Herczl|
|---|---|
||Y I Luftig|
||J Moskovits|
|Secretary and Trustee|Y I Luftig|
|Company Number|06407566|
|Charity Number|1125696|
|Registered Office|C/o B Olsberg & Co|
||Room 9 Enterprise House|
||3 Middleton Road|
||Manchester|
||M8 5DT|
|Auditor|B Olsberg & Co|
||Chartered Accountants and|
||registered Auditor|
||Enterprise House|
||3 Middleton Road|
||Manchester|
||M8 5DT|
- 1 -
## **BAIS MALKA LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
The trustees, who are also directors and secretary of the Charity for the purpose of the Companies Act have pleasure in presenting their report and financial statements of the charitable company for the year ended 31 March 2021.
## **OBJECTIVES OF BAIS MALKA LIMITED**
Bais Malka Limited is governed by its Memorandum and Articles of Association. The charity’s objects and its principal activities are:
1. To advance education and religion in accordance with Orthodox Judaism.
2. To relieve poverty and carry out other charitable activities.
The charity is organised so that the trustees meet regularly to manage its affairs. The charity does not use voluntary assistance. Administration of the charity is dealt with by the trustees.
## **LEGAL STATUS**
The company is limited by guarantee and is governed by its memorandum and articles of association dated 24th October 2007. The company is a registered charity - number 1125696.
## **PRINCIPAL ACTIVITY AND REVIEW OF THE YEAR**
The principal activity of the Charity in the period under review was supporting the running of a school.
## **ORGANISATION**
The charity is managed by a committee of the trustees which is composed of the directors and secretary of the Charity.
## **INVESTMENT POWERS AND RESTRICTIONS**
The trustees have wide-ranging investment powers to invest the Charity's assets as they see fit in the furtherance of the Charity's objectives.
## **REVIEW OF FINANCIAL ACTIVITIES AND AFFAIRS**
The financial statements for the year show a net income (including revaluation) of £743,692 (2020 - £70,334). The trustees consider the financial position of the charity to be satisfactory.
The financial statements conform to current statutory requirements and comply with the Charity's governing documents.
## **PUBLIC BENEFIT**
The trustees have referred to the guidance contained in the charity commissioners general guidance on public benefit when reviewing the charity’s aims and objectives, and in planning future activities.
## **RESERVES POLICY**
All reserves are held for the running of the school and for maintenance of the properties.
## **CORONAVIRUS**
The charity was virtually unaffected by the pandemic during the accounting period.
## **RISK MANAGEMENT**
The trustees actively review the major risks which the charity faces on a regular basis and believe that continuous vetting and review of the controls over key financial systems will be a sufficient safeguard to alleviate risks. The trustees have also examined other operational and business risks faced by the charity and confirm that they are satisfied. The major risks faced by the charity are the operational risks from ineffective running of the school. The directors manage this risk by ensuring the right staff are utilised and supervised.
## **REVIEW OF DEVELOPMENTS, ACTIVITIES AND ACHIEVEMENTS**
Bais Malka Limited continued to support the running of a school. This is funded by income from donations, government grants and childcare fees.
## **THE TRUSTEES**
The trustees who served the charitable company during the year were: -
H HERCZL
Y.I. LUFTIG
J MOSKOVITS
- 2 -
## **BAIS MALKA LIMITED**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **PLANS FOR FUTURE PERIODS**
The trustees plan to continue raising funds for projects in line with the memorandum and articles of association and to pursue those educational objectives and projects by operating and maintaining the school with all the resources available to the charity.
## **RESPONSIBILITIES OF THE TRUSTEES**
The trustees, who are also directors 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).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the charitable company’s affair at the end of the year and of the net incoming or outgoing resources for the year then ended.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at anytime the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the detection of fraud and other irregularities.
## **AUDITOR**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
## **SIGNED ON BEHALF OF THE TRUSTEES:**
…………………………………………………
TRUSTEE
Dated 25 January 2022
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## **BAIS MALKA LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **(INCLUDING INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**INCOME AND EXPENDITURE**
**Incoming Resources**
Childcare
Council Grants
Sundry Income
JRS - Furlough Scheme
**Resources Expended**
Direct Charitable Expenditure
3
**Governance Costs**
Professional Fees
Accountancy and Audit
Sundry
Bank Charges and Fees
**Total Resources Expended**
**Net Income Resources for the year**
Revaluation of property
**Net movement in Funds**
Balance Brought Forward
Balance Carried Forward|**2021**
£
933,783
175,079
101,140
348,470
1,558,472
1,471,595
1,200
6,000
-
914
8,114
1,479,709
78,763
664,929
743,692
949,154
1,692,846|**2020**
£
885,309
184,959
266,297
-|
|---|---|---|
|||1,336,565
1,256,609|
|||2,506
6,000
43
1,073|
|||9,622|
|||1,266,231|
|||70,334
-|
|||70,334
878,820
949,154|
There were no recognised gains and losses for 2021 and 2020 other than those included in the above Statement of Financial Activities.
There are no restricted funds. All income and expenditure derive from continuing activities.
The notes form part of these accounts
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## **BAIS MALKA LIMITED**
## **STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021**
|**Fixed Assets**
**Note**
Property at Valuation
6
Fixtures Fittings and Equipment
**Current Assets**
Debtors
7
Stock of Requisites
Bank
**Creditors: Payable within one year**
8
**Net Current Assets/(Liabilities)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**Creditors: due beyond one year**
9
**Net assets**
**REPRESENTED BY:**
**Unrestricted Funds**|**2021**
£
2,000,000
34,390
2,034,390
235,672
20,000
18,641
274,313
276,258
-1,945
2,032,445
339,599
1,692,846
1,692,846
1,692,846|**2020**
£
1,295,321
34,390|
|---|---|---|
|||1,329,711
28,780
20,000
4,172|
|||52,952
70,104|
|||-17,152|
|||1,312,559
363,405|
|||949,154|
|||949,154|
|||949,154|
The financial statements were approved by the Board on 25 January 2022 and signed on its behalf.
## **Director**
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## **BAIS MALKA LIMITED**
## **STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2021**
|**CASH FLOW STATEMENT**
Net movement in funds
(Increase)/Decrease in debtors
(Decrease) in creditors
Net cash (outflow)/inflow from operations
Net cash (outflow)
Property Additions
Property Revaluation
(Decrease)/Increase in cash
Balances brought forward
Balances carried forward|**2021**
£
743,692
(206,892)
182,348
719,148
719,148
(39,750)
(664,929)
4,172
18,641|**2020**
£
70,334
46,000
(107,495)|
|---|---|---|
|||8,839|
|||8,839
(41,558)
-
36,891
4,172|
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## **BAIS MALKA LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR YEAR ENDED 31 MARCH 2021**
## **1. STATEMENT OF COMPLIANCE**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
## **2. ACCOUNTING POLICIES**
## **Accounting convention**
The financial statements have been prepared under the historical cost convention as modified by the revaluation of the Land and Buidings.
## **Fund Accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
There are no designated or restricted funds in relation to the activities of the charitable company.
## **Going concern**
There are no material uncertainties about the charity's ability to continue.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported besides the fair value of the land and buildings.
## **Incoming Resources**
All incoming resources are included in the SOFA when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy.
## **Resources Expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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 assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation**
There is no depreciation charged on land and buildings owing to it being kept to a high standard.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
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## **BAIS MALKA LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR YEAR ENDED 31 MARCH 2021 (Cont…)**
|**3.**
**Direct Charitable Expenditure**
School Salaries
Professional
School Requisites
Rent & Rates
Heat, Light & General Maintenance
Insurance
Travel, Outings, Functions & Food
Telephone and System
Security
Loan Interest
Promotion & Advertising
Printing, postage and stationery
Sundry
**4.**
**Auditors Remuneration**
Fee payable to B Olsberg & Co
**5.**
**Staff Costs**
Teachers|**2021**
£
911,517
157,258
115,038
9,719
92,908
10,814
90,367
12,678
22,747
21,208
10,831
16,510|**2020**
£
828,183
119,583
75,151
7,247
71,962
11,645
57,782
15,376
22,093
24,724
6,764
15,184
915
1,256,609
6,000|
|---|---|---|
||1,471,595||
||6,000
911,517
210||
|||828,183|
|||200|
The trustees received no remuneration and no expenses were reimbursed to them. No employee received benefits of more than £60,000 during the year or previous year.
**6** .
|**Fixed Assets**
As at 1 April 2020
Additions
Disposals
Revaluation
As at 31st March 2021|Freehold
Fixtures &
Property
Equipment
£
£
1,295,321
34,390
39,750
-
-
664,929
-
2,000,000
34,390|
|---|---|
This is the value placed on the property by professional valuers..
- 8 -
## **BAIS MALKA LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR YEAR ENDED 31 MARCH 2021 (Cont…)**
|**7.**
**Debtors**
Prepayments & Accrued Income
Loans (repayable after 12 months)
**8.**
**Creditors Due Within One Year**
Wages and Paye accrued
Accruals
Loan
Mortgage
**9.**
**Creditors Payable Beyond One Year**
Mortgage secured on the freehold property||**2021**
£
30,959
204,713
235,672
**2021**
**£**
87,218
11,040
162,000
16,000
276,258
339,959||**2020**
£
28,780
-
28,780
**2020**
**£**
48.104
6,000
-
16,000
70,104
363,405|
|---|---|---|---|---|
## **10. Controlling Interest**
The company is controlled by the directors and trustees.
## **11. Taxation**
The company is registered as a charity by the HM Revenue & Customs and therefore benefits from certain exemptions from taxation on income and gains to the extent that they are applied for charitable purposes.
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## **BAIS MALKA LTD**
## **(Registered Charity Number 1125696)**
## **Independent Auditors Report to the members of Bais Malka Ltd**
## **Opinion**
We have audited the financial statements of Bais Malka Ltd for the year ended 31 March 2021, which comprise the Company Statement of Financial Activities (including income & expenditure account), the Company statement of financial position and the related notes including a summary of significant account policies. The financial Reporting framework that has been applied in their preparation is 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”.
This report is made solely to the Company's members, 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 Company's members those matters we are required to state to them in an auditors' 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 Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the Financial Statements:
- Give a true and fair view of the state of the Company’s affairs as at 31 March 2021, and of the Charitable Company’s incoming resources and application of resources including its income and expenditure, for the year 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 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- The trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- The trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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## **BAIS MALKA LTD**
## **(Registered Charity Number 1125696) Independent Auditors Report to the members of Bais Malka Ltd**
## **Cont…**
## **Other Information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which 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.
## **Responsibilities of Trustees**
As explained in the Trustees Responsibilities Statement set out on page 6, 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 and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
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## **BAIS MALKA LTD**
## **(Registered Charity Number 1125696)**
## **Independent Auditors Report to the members of Bais Malka Ltd**
## **Cont…**
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of the accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to event or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are in adequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in manner that achieves fair presentation.
- 12 -
## **BAIS MALKA LTD**
## **(Registered Charity Number 1125696)**
## **Independent Auditors Report to the members of Bais Malka Ltd**
## **Cont…**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charity's members, 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 members 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Bernard Olsberg (Senior Statutory Auditor) for and behalf of B Olsberg & Co Chartered Accountants & Statutory Auditor Enterprise House 3 Middleton Road Manchester M8 5DT
25 January 2022
## **B Olsberg & Co is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006**
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