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2023-08-31-accounts

Company registration number: 08004087

Charity registration number: 1155025

Paradise RIDA School Trust Ltd

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2023

CONTENTS

REFERENCE AND ADMINISTRATIVE DETAILS ....................................................................................... 2 TRUSTEES’ REPORT ......................................................................................................................... 3 INDEPENDENT EXAMINER'S REPORT ................................................................................................. 7 STATEMENT OF FINANCIAL ACTIVITIES .............................................................................................. 8 BALANCE SHEET ............................................................................................................................. 9 STATEMENT OF CASH FLOWS .......................................................................................................... 10 NOTES TO THE FINANCIAL STATEMENTS ........................................................................................... 11

Reference and Administrative Details

Paradise RIDA School Trust Ltd

REFERENCE AND ADMINISTRATIVE DETAILS

Director and Trustees

The directors of Paradise RIDA School Trust Ltd, who are its trustees for the purpose of charity law, present the annual report of the charitable company for the year ended 31 August 2023.

The directors and trustees serving during the year and subsequent to year end were as follows:

Name Companies House Charity Commission
Yasir Patel Director Trustee
Y Gajra Director Trustee
N Patel No role Trustee
H Khatib No role Trustee
Afsana Patel Resigned as Director on 26 November 2024 Trustee
I Dalal Resigned as Director on 24 October 2024 Trustee
A Mitha Resigned as Director on 24 October 2024 Trustee
Yusuf Patel Resigned as Director on 22 October 2024 Trustee
R Abdullah Resigned as Director on 22 October 2024 Resigned
A A Patel Resigned as Director on 31 August 2024 Resigned
Principal Office and
Registered Office
1 Bretton Street
Dewsbury
WF12 9BB
Company Registration Number: 08004087
Charity Registration Number: 1155025
Independent Examiner: AHM
Chartered Accountants & Business Advisors
The Beeches
20 Ring Road Shadwell
Leeds, LS17 8NJ
Website: www.paradiseschool.org.uk

2

Trustees’ Report

Paradise RIDA School Trust Ltd

TRUSTEES’ REPORT

The trustees are pleased to present their annual trustees’ report together with the charity’s financial statements for the year ending 31 August 2023, which are also prepared to meet the requirements for a trustees’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102, effective January 2019).

Structure, Governance and Management

Paradise RIDA School Trust Limited is a registered UK charity, incorporated as a company on 23 March 2012, company number 08004087, limited by guarantee, and registered as a charity on 16 December 2013 under charity number 1155025. The governing document are its Articles of Association.

Appointment and Removal of Trustees

The power to and responsibility for the appointment and removal of Trustees from the Board rests with the Trustees collectively.

Objectives and activities

The objectives of the trust, as set out in its governing document are:

  1. To advance education of young people through the establishment and maintenance of an educational facility / facilities.

  2. To advance education for the public benefit about Islam through the holding of meetings, lectures and gatherings.

  3. For the benefit of the public, to promote learning for pleasure by people no longer in full time education through continued development of their capabilities and understanding of subjects of educational value.

  4. To assist in efforts to relieve poverty at a local, national and international level by providing support and assistance to those who are in need of help.

Achievements and Performance

During the year, the organisation came together with other local schools to form an enlarged entity. Following this coming together, 'RIDA' was incorporated into the charity name and the enlarged organisation is now known as 'Paradise RIDA School Trust'. As detailed above, several new trustees were also appointed following the merger. Following the year end, several of the directors and trustees relinquished their positions as set out in the Directors and Trustees section.

3

Trustees’ Report

Paradise RIDA School Trust Ltd

The charity has:

Financial Review

The year’s financial results are outlined in the Statement of Financial Activities and Balance Sheet and further explained in the notes to the accounts.

Impact of Merger on Financial Performance

As a consequence of the merger with RIDA there has been a significant increase in both revenue and expenditure. The increase in income is primarily attributable to the merger, as the charity has incorporated the funding streams and other revenue sources of the merged entity. Similarly, the rise in expenditure reflects the integration of the merged organisation’s activities, operational costs, and associated staffing and service delivery expenses.

While the merger has led to an initial increase in costs, as the integration process stabilises, the organisation expects to realise operational synergies, efficiency gains, and ultimately cost savings. These benefits will enhance the charity’s long-term sustainability and its ability to deliver impact more effectively.

Prior period adjustment

The financial statements have been restated to reflect the reclassification of a long-term debtor as leasehold improvements. This adjustment was made to more accurately present the nature of the asset in accordance with applicable accounting standards.

As a result of this reclassification, leasehold improvements have been recognised as tangible fixed assets and depreciated over their estimated useful life. The impact of this adjustment is as follows:

This adjustment ensures that the financial statements more appropriately reflect the nature and treatment of the asset.

Reserves

The charity’s available reserves at the year-end are shown in note 14 of the financial statements. The surplus of income over expenditure fell from £63,816 in 2022 to an overall deficit of £46,720 for 2023. It is the policy of Paradise RIDA to maintain an adequate level of reserves to fund working capital and unexpected events and to accumulate resources against unexpected changes in the operating environment so that our work and the users of our services are not adversely affected.

It is the Trustees’ intention to increase its level of reserves to the equivalent value of three months operating costs to ensure that the charity can continue to meet its obligations and safeguard its activities.

4

Trustees’ Report

Paradise RIDA School Trust Ltd

The balance sheet position as at 31st August 2023 shows reserves deficit of £46,720.

Unrestricted reserves funds are available for the general purpose of the charity. Paradise RIDA plans to use these to underpin our work and ensure sustainability of the services we offer.

Going Concern

The Board has carefully reviewed the financial performance of Paradise RIDA School Trust Ltd for 2023, including post-year-end performance, forecasted cash flows, and the impact of restructuring measures undertaken. While the Trust’s Total Funds position is currently negative, the Board acknowledges this challenge and has put in place a clear financial strategy to address it.

The negative funds position primarily reflects a deliberate strategy to invest in our staffing and resources which will yield long term benefit. Crucially, whilst the Trust has had to temporarily access external funding, there is no immediate liquidity concerns. The Board remains confident that with planned financial adjustments, continued support from stakeholders, and operational efficiencies, this position will improve over time.

Having assessed the Trust’s financial outlook, including cash flow projections and funding commitments, the Board believes that the charity has sufficient resources to meet its obligations and continue operating effectively. Therefore, despite the current deficit, the Trustees consider that there are no material uncertainties affecting the Trust’s ability to continue as a going concern, and the financial statements have been prepared on this basis.

Risk Management

Paradise RIDA has an internal risk control system in place. The Directors are aware of the controls and are committed to reviewing these on an ongoing basis. There is a comprehensive finance manual in place and controls exist over funding, expenditure and general financial management. Management accounts, including cash and reserves position, are shared with the Board regularly.

Paradise RIDA identifies the key risks facing the organisation and records these in a risk register. The risk register is an active management tool that is reviewed on a monthly basis by the senior management team. Each risk is rated and mitigating actions are assigned to ensure that there is minimal exposure to the risk. The risks are also reviewed to ensure that adequate mitigating actions are in place. The Board review the risk register on a quarterly basis.

Staff and Volunteers

Paradise RIDA is operated through a network of committed staff and volunteers. Without their continuing drive and commitment Paradise RIDA would not be the force it is. The directors reaffirm their commitment to an organisational culture that cares for our people and those we serve.

5

Trustees’ Report

Paradise RIDA School Trust Ltd

Unprecedented External Events – Imposition of VAT on fees

The UK government's decision to impose VAT on private school fees is expected to have a significant financial impact on the sector, including our organisation. This policy change will increase the cost of education for families, potentially affecting student enrolment levels and financial accessibility. While the full implications are yet to materialise, we anticipate increased pressure on fee structures, potential shifts in demand, and a need for enhanced financial planning to mitigate the effects. The organisation is actively assessing the impact and exploring measures to ensure financial sustainability while continuing to deliver high-quality education in line with our charitable objectives.

Statement of responsibilities of the trustees

The trustees (some of whom are also directors of Paradise RIDA School Trust Ltd for the purposes of company law) are responsible for preparing the Trustees' Annual 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 affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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 financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

Approved by the Board and signed on its behalf by:

==> picture [81 x 35] intentionally omitted <==

Yasir Patel Director & Trustee

Date: 26[th] March 2025

6

Paradise RIDA School Trust Ltd Independent Examlner's Report INDEPENDENT EXAMINER'S REPORT TOTHE TRUSTEES OF PARADISE RIDA SCHOOL TRUST LTD l ￿POrt to the trustees on my examination of the financial ststements of Para(Jise RIDA School Trust Ltd Ithe charity) for the year ènded 31 August 2023. Responsibilities and basis of report As the trustees of the Charlty land abo tts dlrectors for the purposes of company lawl you are responsible for the preparation of the financial statements in acwdance with the requirements of the Companies Act 2006 (the 2C*J6 Actl. Having satisfied myself that the financial ststements of the chartty are not required to be audited under Part 16 of the 2006 Act and are eli8ible for independent examlnation. I report In respect of my examination of the charl￿5 financial statements caffied out under section 145 of the Charitie5 Act 2011 (the 2011 Act). In tarrying out my examination I have fo51owed all the applicable Direction5 given by the a)arity Commission under sectlon 14515llbl of the 2011 Art. Independent examiner's statement Since the charitvs gross income exwded £250,IKX) your examiner must be a member of a body Irsted in section 145 of the 2011 Act. I confirni that l am qualtfied to undertakethè examination because l am a member of the Institute of Chartered Atcounts in England and Wales IICAEWI, which is one of the listed bodies. I have completed my examination. I confim that matter5 have come to my attention in connectlon with the eyamination gNlng me (ause to belleve that in any material respect: accountlng records were not kept in respect of the charity as required by section 386 of the 2CM)6 Act; or the financial statements do not accord with those record5: or the financial statements do not compty with the accountin8 requirements of sertlon 396 of the 2LN)6 Act other than any requirement that the accounts give a true and fairview which is not a matter consi(lered as part of an independent examination,. or the financlal statements have not been prepared in accordancewith the method5 and prlndples of the Statement of Recommended Practice for accounting and ￿PortIng by tharlties applicable to charities preparing their accounts in accordance with the Finandal Rep)rting Stsndard applicable in the UK and RepU￿1C of I￿land IFRS 1021. I have no cOn￿m5 and have come across no other matters in connecDon with the examination to which attention should be drawn In this report In order to enable a proper understsnding of the financial statements to be reached. Waheed Ahmad Bsc ACA Institute of Chartered Accountants in England Bnd W8les AHM. The Beeches. 20 Rln8 Road Shadwell, Leed5. LS17 8NJ Date.. 26" March 2025

Statement of Financial Activities

Paradise RIDA School Trust Ltd

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023

(Incorporating an Income and Expenditure Account)

Note
Income from:
Donations
3
Charitable activities
4
Total Income
Expenditure on:
Charitable activities
5
Total Expenditure
Net expenditure and net movement
in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14
Unrestricted
Funds
£
1,364
972,673
974,037
1,084,573
1,084,573
(110,536)
63,816
(46,720)
Total
2023
£
1,364
972,673
974,037
1,084,573
1,084,573
(110,536)
63,816
(46,720)
Total
2022
As restated
£
72
476,189
476,261
570,760
570,760
(94,499)
158,315
63,816

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The funds breakdown for 2023 is shown in note 14.

8

Paradise RIDA School Trust Ltd

Balance Sheet

BALANCE SHEET AS AT 31 AUGUST 2023

Note
Fixed assets
9/9a
Current assets
Debtors
10
Cash at bank
Total current assets
Creditors: Amounts falling due within one year
11
Net current liabilities
Total Assets less Current Liabilities
Creditors: Amounts falling due after one year
12
Total net (liabilities) / assets
Funds of the Charity
Unrestricted income funds
14
Total Funds
2023
£
69,073
47,585
4,345
51,930
(127,723)
(75,793)
(6,720)
(40,000)
(46,720)
(46,720)
(46,720)
2022
As Restated
£
77,501
20,151
3,722
23,873
(28,558)
(4,685)
72,816
(9,000)
63,816
63,816
63,816

For the year ended 31 August 2023, 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 Companies Act 2006 with respect to accounting records and the preparation of accounts.

The financial statements on pages 8 to 21 of the report have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the trustees, and authorised for issue on and signed on their behalf by:

==> picture [82 x 32] intentionally omitted <==

Yunus Gajra Director & Trustee

9

Paradise RIDA School Trust Ltd

Cash Flows

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Net loss for the year before depreciation
Net cash flows from operating activities:
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by / (used in) operating activities
Net cash (used in) / provided by investing activities
Net cash provided by financing activities
Net increase / (decrease) in cash & cash equivalents in the year
Cash & cash equivalents at the beginning of the year
Cash & cash equivalents at the end of the year
2023
£
(95,236)
(27,434)
99,165
(23,505)
(6,872)
31,000
623
3,722
4,345
2022
£
(82,907)
1,387
23,780
(57,740)
5,000
-
(52,740)
56,462
3,722

Cash and cash equivalents are represented by cash at bank and in hand.

10

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. Accounting policies

Statutory information

Paradise RIDA School Trust Ltd is a charitable company limited by guarantee and is incorporated in United Kingdom. The registered office address is 1 Bretton Street, Savile Town, Dewsbury, WF12 9BB

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.

Basis of preparation

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 (2nd Edition, effective January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The trustees have taken advantage of the reduced disclosure framework exemptions as noted in FRS 102 section 1.12.

Paradise RIDA School Trust Ltd 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 have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Based on the performance in 2024 & 2025 to date and forecast cashflows, the Board believes that the charity has adequate resources for the foreseeable future.

The Board believes that there are no material uncertainties that call into doubt the charitable company’s ability to continue in operation. Therefore, the financial statements have been prepared on a going concern basis.

Income and Donations

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be

11

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

Income from charitable activities

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to the particular categories of income:

Voluntary income

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable.

Grants

Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

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.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

12

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

Liabilities

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

The charity does not have anything other than basic financial instruments.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvement 4% Straight line over 25 years Fixtures, fittings & IT equipment 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and other short-term highly liquid holdings that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve

13

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Fund accounting

Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the Charity.

Designated income funds are general funds which have been set aside at the trustee’s discretion for specific purposes. As at the year end, and in line with the previous year, the Charity does not have any designated funds.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

2. Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trustees consider that there are no significant areas of judgements or estimates.

3. Income from donations

Grants and donations Unrestricted
Funds
£
1,364
1,364
Total
2023
£
1,364
1,364
Total
2022
£
72
72

4. Income from charitable activities

Nursery Education Funding
Other activities
School fees
Unrestricted
Funds
£
268,471
804
703,398
972,673
Total
2023
£
268,471
804
703,398
972,673
Total
2022
£
218,817
-
257,372
476,189

14

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

5. Expenditure on charitable activities


Salary and related costs
Repairs and maintenance
Utilities
Rent, rates and Insurance
Education supplies
Printing, postage and stationary
Depreciation
Telephone & broadband
Professional fees(note 5.1)
Tuition & supply teaching services
IT services and software
School inspection and other partnership costs
Other costs
Total
Total
2023
£
826,276
12,658
44,528
43,517
31,077
23,092
15,300
5,774
5,872
7,375
26,989
15,078
27,037
1,084,573
Total
2022
£
452,376
14,898
14,300
11,911
10,477
2,987
11,592
5,309
1,896
23,147
11,482
4,006
6,379
570,760

Depreciation charge for 2022 has been restated at £11,592 from £6,088 as originally stated. This has been due to the prior period adjustment impacting leasehold improvements, see note 9a.

5.1 Analysis of governance and support costs

Within professional fees there are accountancy fees of £4,404 which are classified as governance costs, all other expenditure incurred is treated as support costs.

6. Net incoming/outgoing resources for the year

This is stated after charging:

2023 2022
£ £
Independent Examiner’s fee 1,000 500
Depreciation 15,300 11,592

7. Trustees remuneration and expenses

During the year Afsana Patel, a trustee, was paid a salary of £12,000 in respect of her duties as headteacher (2022: £7,000). No other trustees have received any benefits from the charity during the year £nil (2022: £nil).

During the year, the charity paid no travel expenses on behalf of the Trustees. (2022 - £nil).

15

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

8. Staff costs

During the year, the average monthly headcount employed by the Charity was 95 (2022: 51). The aggregate payroll costs were as follows:

Staff costs during the year were:

Wages
Social Security Costs
Employer contributions to pension
Other staff costs
2023
£
795,070
25,404
3,705
2,097
826,276
2022
£
436,659

11,568

3,001
1,148
452,376

No employee received emoluments of more than £60,000 during the year, or in the previous year.

16

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

9. Tangible fixed assets

Cost or valuation
At 1 September 2022 (as
previously stated)
Prior year adjustment
(note 9a)
At 1 September 2022 (as
restated)
Additions
At 31 August 2023
Accumulated Depreciation
At 1 September 2022 (as
previously stated)
Prior year adjustment (note 9a)
At 1 September 2022 (as
restated)
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022 (as restated)
Leasehold
Property
As Restated
£
-
137,609
137,609
-
137,609
-
77,061
77,061
5,504
82,565
55,044
60,547
Office
Equipment
£
48,979
-
48,979
1,356
50,335
40,878
-
40,878
4,406
45,284
5,051
8,101
IT
Equipment
£
16,169
-
16,169
5,514
21,683
7,315
-
7,315
5,390
12,705
8,978
8,853
Total
As Restated
£
65,148
137,609
202,757
6,870
209,627
48,193
77,061
125,254
15,300
140,554
69,073
77,501

Note 9a: Leasehold improvements – prior year adjustment

The financial statements have been restated to reflect the reallocation of leasehold improvements, which were previously recorded within other debtors. This adjustment has resulted in a reduction of £77,061 in the unrestricted general funds as of 31 August 2022, representing accumulated depreciation charged at an annual rate of £5,504.

17

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

Summary of the prior year accounting impact:

Reduction in other debtors
Increase in fixed asset leasehold improvements
Accumulated depreciation charged
Overall impact on unrestricted funds at 31 August 2022
10.
Debtors
Trade debtors
Prepayments & Accrued Income
Other debtors (note 9a)
Total
11.
Creditors: amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors
Accruals & deferred income
12.
Creditors: amounts falling due after one year
Loans
2023
£
3,102
14,233
30,250
47,585
2023
£
67,051
3,585
1,765
55,322
127,723
2023
£
40,000
£
(137,609)
137,609
(77,061)
(77,061)
2022
£
-
2,081
18,070
20,151
2022
£
3,921
24,637
-
-
28,558
2022
£
9,000

18

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

13. Charity status

The Charity is a Charity limited by guarantee and consequently does not have share capital. The Charity currently has eleven members, each of whom is liable to contribute an amount not exceeding £10 towards the assets of the Charity in the event of liquidation.

14. Movement in Funds

Current year
Unrestricted funds
Balance at 1 September 2022 (as previously stated)
Prior year adjustment (note 9a)
1 September 2022 (as restated)
Incoming resources
Outgoing resources
Balance at 31 August 2023
Prior year
Unrestricted funds
Balance at 1 September 2021 (as previously stated)
Prior year adjustment (note 9a)
1 September 2021 (as restated)
Incoming resources
Outgoing resources
Balance at 31 August 2022
General funds
£
140,877
(77,061)
63,816
974,037
(1,084,573)
(46,720)
General funds
£
229,871
(71,556)
158,315
476,261
(570,760)
63,816

The opening balance of general funds has been restated to £158,315 as a result of the prior year adjustment. Accumulated depreciation has been charged to 1 September 2021 at £5,504 per annum, representing the £71,556 reduction in the funds.

Further details are shown in note 9a.

The specific purposes for which the funds are to be applied are as follows:

Unrestricted funds are income from charitable activities and donations provided for support of the charity, without restriction on how funds should be deployed.

19

Paradise RIDA School Trust Ltd

Notes to the Financial Statements

15. Analysis of net assets between funds

Fixed assets
Current assets
Current liabilities
Long term liabilities
Total net (liabilities) / assets
Unrestricted
Funds
2023
£
69,073
51,930
(127,723)
(40,000)
(46,720)
As restated
Unrestricted
Funds
2022
£
77,501
23,873
(28,558)
(9,000)
63,816

16. Related party transactions

During the year, the entity entered into transactions with related parties. These transactions were conducted on an arm’s length basis and in the ordinary course of business.

Nature of Transaction:

During the year, a temporary loan was provided to Paradise RIDA.

Parties Involved:

The loan was provided by Yasir Patel, a trustee of the entity.

Financial Impact:

The maximum loan balance with this related party during the year was £40,000 (2022: £9,000). As of 31 August 2023, the outstanding amount owed to Yasir Patel was £40,000 (2022: £9,000). The amounts are shown within creditors amounts falling due after one year.

The loan was provided on an interest-free and unsecured basis and was largely repaid in September 2023.

The loan arrangement was reviewed and approved in accordance with the entity’s governance policies.

Nature of Transaction:

Provision of tuition services

Parties: Involved:

The entity providing these services was Brilliant Minds (Learning Centres) Limited, a company in which the trustee Yasir Patel and former trustee and headteacher Afsana Patel hold a beneficial interest.

Financial Impact:

The total value of transactions with this related party during the year amounted to £11,325 (2022: £4,688). As of 31[st ] August 2023, the outstanding balances with this related party was £7,375 payable (2022: £Nil).

The transactions were made under heavily discounted commercial terms to Paradise RIDA and on extended settlement.

The arrangements were reviewed and approved in accordance with the entity’s governance policies.

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Paradise RIDA School Trust Ltd

Notes to the Financial Statements

Nature of Transaction:

Provision of Education consultancy services

Parties: Involved:

The entity providing these services was Educating Excellence Limited, a company in which the trustee Yasir Patel and former trustee and headteacher, Afsana Patel hold a beneficial interest

Financial Impact:

The total value of transactions with this related party during the year amounted to £Nil (2022: £18,000). As of 31[st ] August 2023, the outstanding balances with this related party was £Nil (2022: £Nil).

The transactions were made under heavily discounted commercial terms to Paradise RIDA and on extended settlement.

The arrangements were reviewed and approved in accordance with the entity’s governance policies.

Nature of Transaction:

Utilisation of Trust premises

Parties: Involved:

Entities in which the trustee, Yasir Patel and former trustee and Headteacher, Afsana Patel, have a beneficial interest have utilised the premises of the trust to conduct third party business.

Financial Impact:

Trustees are currently negotiating the rental that should be payable to the Trust as a consequence of this use. It is envisaged that a sum of £6,000 per annum be payable to the trust, backdated to September 2022.

The arrangements were reviewed and approved in accordance with the entity’s governance policies.

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