2020-10-31-accounts - Bondh E Shams

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Registered charitable incorporated organisation: CE015491 Charity registration number: 1180495

Bondh E Shams

Annual Report and Financial Statements

for the Year Ended 31 October 2020

Bondh E Shams

	Contents
Reference and Administrative Details		1
Trustees' Report		2 to 4
Statement of Trustees' Responsibilities		5
Independent Examiner's Report		6
Statement of Financial Activities		7
Balance Sheet		8
Notes to the Financial Statements		9 to 13

Bondh E Shams

Reference and Administrative Details

Chair H Farrukh Trustees S Ibrahim H Farrukh S Masood Registered Office 46 Hainault Road London E11 1EE The charitable incorporated organisation is incorporated in England and Wales. Registered charitable CE015491 incorporated organisation Charity Registration Number 1180495 Independent Examiner Waite Financial Ltd 167-169 Great Portland Street 5th Floor London England W1W 5PF

Bondh E Shams

Trustees' Report

The trustees present the annual report together with the financial statements of the charitable incorporated organisation for the year ended 31 October 2020.

Objectives and activities

Objects and aims

The advancement of health and the relief of poverty by providing safe and clean water to under-resourced communities, as a fundamental and basic need.

The Trustees were always mindful of the Charity Commission’s guidance on the advancement of health and the subsequent relief of poverty when planning our activities for the year. Our objectives remained a key focus through-out careful and considerate decision making when addressing the very real need for our work and how the lives of individuals in our target communities have been critically impacted by a lack of clean water. To date, at maximum capacity, our projects have provided a total of 37 million cups of clean water in Pakistan.

Objectives, strategies and activities

Advancement of Health

Over 2 billion people around the world still lack access to clean water. Devastatingly, over 3.4 million people die from water-borne disease every year, most of whom are children (WHO/UNICEF 2021). More than 700 children under the age of 5, tragically die every day from preventable diseases caused by contaminated water and lack of sanitation and hygiene (UNICEF 2021).

We are tackling the detrimental impact of water-borne disease by providing access to clean and safe water to the target communities where we work, serving as a critical lifeline and ensuring both individual and community health and flourishment.

In Pakistan, lack of safe, clean water remains critical particularly in the water-starved provinces of Sindh and Balochistan. Those extracting groundwater from shallow tube wells have no mechanism to filter their water which has a devastating short and long-term impact on individual and community health. We continue to target under-resourced communities, providing millions of cups of clean water across the country.

Yemen

In parts of Yemen, water is weaponised and has been used by both sides of the conflict, to cut off critical water supply to civilians. As a result of 7 years of war, Yemen continues to face the world’s worst humanitarian crisis, and the dire situation was further exacerbated by severe flooding in 2019, causing an outbreak of cholera. Access to safe and clean water is critical and our decision to work in the region was a simple and important one. We began production for 2 OASIS Boxes due for deployment in the region - one just outside Taiz city, Yemen’s second most populated urban centre. The place is in urgent need for water resources, as water supply from the outside is cut-off as part of a siege on the city. The second OASIS Box will be deployed in an extremely under-resourced community in the city of Ibb.

Public benefit

Water poverty is defined as a total lack of access to water of a clean and adequate quality to meet one’s basic fundamental needs, and is now a global crisis.

Our work tackles this form of poverty head on in our target communities.

Bondh E Shams

Trustees' Report (continued)

Associated poverty arising out of safe and clean access to water is attributable to the devastating economic and social impact felt by water-starved communities. 90% of water collection is done by women and children (mostly young girls).

Around the world, a reported daily 200 million hours are spent collecting water, leaving little time for children to attend school and for women to work or attend to their personal development. This impacts entire communities. Our work has drastically reduced the hours spent in collecting water by the individuals in our target communities.

Bondh E Shams is a volunteer run charity and extremely thankful to each member of the global team for their time and ongoing contributions in making our work continuously possible.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

Due to the outbreak of Covid-19, our international operations were severely disrupted as a result of global lockdowns and border closures. Our projects in Yemen and the Rohingya Refugee camps initially scheduled for 2020 were deferred. That said, during the reporting period, we continued to develop key partnerships in both regions, identify location for OASIS Box deployment, undertake water sampling and ground feasibility surveys with a view to deploy projects as soon as possible.

Closer to home in Pakistan, we implemented our first school Solar Water Project in Sadiqabad, Sindh. The project provides safe and clean water to approx. 175 students and the surrounding community of 2000. Previously, the nearest access to clean water was 4-5km away.

We continued Research and Development of our signature water filtration unit, the OASIS Box (Off-grid Aqua Solar Integration System). The latest version of the Box contains a rain-harvesting water collection feature in line promoting further sustainability. The feature captures rainwater directly leading the water-flow into our 3-tier filtration device for safe drinking. Each OASIS Box now includes data analytics technology providing volume and performance daily data (i.e. the exact number of cups served each day) which can be monitored directly through our website.

In March 2020, our Founder Hamza Farrukh was awarded the 129th Commonwealth Points of Light award in honour of exceptional voluntary work of providing clean water to communities in Pakistan through Bondh E Shams. During March, we also held our second fundraiser in London.

Structure, governance and management

Policy on reserves

Bondh E Shams holds on reserve the costs of 1 Solar Water Project (OASIS Boxes) including operating costs, in addition to no less than 3 months operating costs for the charity in the event that an urgent project should arise i.e. urgent need for safe and clean water in a target community or in response to a critical crisis, and to allow the charity to respond accordingly.

Funds in deficit

No funds were materially in deficit.

Bondh E Shams

Trustees' Report (continued)

Further financial review

Our main source of funding was through donations through-out the reporting period and a fundraiser in March 2020.

The expenditure has allowed the charity to continue its life-saving work to provide clean water to more individuals in Pakistan and expand our work to Yemen. This is in line with our objectives (the advancement of health and relief of poverty).

The expenditure additionally allowed us to continue R&D on the OASIS Box, which has resulted in an even more cost-effective solution.

The annual report was approved by the trustees of the charity on 23 August 2021 and signed on its behalf by:

S Ibrahim Trustee

Bondh E Shams

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the trustees to prepare financial statements for each financial year. Under such 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 charity and of its incoming resources and application of resources, including its income and expenditure, 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 UK Accounting Standards 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 adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 23 August 2021 and signed on its behalf by:

S Ibrahim Trustee

Bondh E Shams

Independent Examiner's Report to the trustees of Bondh E Shams

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 October 2020 which are set out on pages 7 to 13.

Respective responsibilities of trustees and examiner

As the charity’s trustees of Bondh E Shams you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

Having satisfied myself that the accounts of Bondh E Shams are not required to be audited under Part 8 of the 2011 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of 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

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:

accounting records were not kept in respect of Bondh E Shams as required by section 130 of the 2011 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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
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.

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.

Luke Waite BA(Hons) ACA Waite Financial Ltd 167-169 Great Portland Street 5th Floor London England W1W 5PF

19 August 2021

Bondh E Shams

Statement of Financial Activities for the Year Ended 31 October 2020

	Unrestricted Restricted Total
	funds funds 2020
Note	£ £ £
Income and Endowments from:
Donations and legacies 3	23,349 4,749 28,098
Total income	23,349 4,749 28,098
Expenditure on:
Raising funds 4	(6,495) (213) (6,708)
Charitable activities 5	(6,620) (47,582) (54,202)
Other	(895) - (895)
Total expenditure	(14,010) (47,795) (61,805)
Net income	9,339 (43,046) (33,707)
Reconciliation of funds
Total funds carried forward 9	18,759 29,977 48,736

	Unrestricted Restricted Total
	funds funds 2019
Note	£ £ £
Income and Endowments from:
Donations and legacies 3	10,534 133,852 144,386
Total income
	10,534 133,852 144,386

Expenditure on:
Raising funds 4	(744) (730) (1,474)
Charitable activities 5	(100) (60,099) (60,199)
Other	(270) - (270)
Total expenditure
	(1,114) (60,829) (61,943)

Net income
	9,420 73,023 82,443

Reconciliation of funds
Total funds carried forward 9
	9,420 73,023 82,443

All of the charity's activities derive from continuing operations during the above period.

Bondh E Shams

(Registration number: 1180495) Balance Sheet as at 31 October 2020

	Unrestricted Restricted Total Total	Unrestricted Restricted Total Total
	funds funds 2020 2019
Note	£ £ £ £
Fixed assets
Tangible assets 8	3,770 - 3,770 -
Current assets
Cash at bank and in hand	14,989 29,977 44,966 82,443
Net Assets	18,759 29,977 48,736 82,443
Funds of the charity:


Restricted funds
		29,977 73,023

Unrestricted funds
		18,759 9,420

Total funds 9		48,736 82,443

The financial statements on pages 7 to 13 were approved by the trustees, and authorised for issue on 23 August 2021 and signed on their behalf by:

S Ibrahim Trustee

Bondh E Shams

Notes to the Financial Statements for the Year Ended 31 October 2020

1 Charity status

The charitable incorporated organisation is registered in England and Wales.

The address of its registered office is: 46 Hainault Road London E11 1EE

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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Charities Act 2011.

Basis of preparation

Bondh E Shams 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 trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

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.

Bondh E Shams

Notes to the Financial Statements for the Year Ended 31 October 2020

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

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, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

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.

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

Fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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:

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.

Bondh E Shams

Notes to the Financial Statements for the Year Ended 31 October 2020

Fund structure

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

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.

3 Income from donations and legacies

	Unrestricted	Restricted	Total	Total
	funds	funds	2020	2019
	£	£	£	£

Donations andgifts	23,349 4,749 28,098 144,386
	23,349 4,749 28,098 144,386

4 Expenditure on raising funds

	Unrestricted	Restricted	Total	Total
	funds	funds	2020	2019
	£	£	£	£
Advertising, marketing and publicity	5,928	-	5,928	1,387
Fundraising agents	355	-	355	8
Subscriptions	231	-	231	-
Bank charges andpayment fees	-	213	213	79
	6,495	213	6,708	1,474
5 Expenditure on charitable activities

	Unrestricted	Restricted	Total	Total
	funds	funds	2020	2019
	£	£	£	£
Covid-19 response	6,500	-	6,500	-
Water testing	-	-	-	868
Bank charges and payment fees	-	114	114	289
Travel & subsistence	-	-	-	7,338
General administrative expenses	120	-	120	-
Insurance	-	-	-	547
Legal & professional fees	-	653	653	4,986
Research and development	-	12,070	12,070	11,000
Solar Box installation	-	34,745	34,745	35,171
	6,620	47,582	54,202	60,199

Bondh E Shams

Notes to the Financial Statements for the Year Ended 31 October 2020

6 Trustee’s remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

7 Taxation

The charitable incorporated organisation is a registered charity and is therefore exempt from taxation.

8 Tangible fixed assets

8 Tangible fixed assets
	Furniture and
	equipment Total
	£ £
Cost
Additions	3,770 3,770
At 31 October 2020
	3,770 3,770

Depreciation
Charge for theyear	- -
At 31 October 2020
	- -

Net book value
At 31 October 2020
	3,770 3,770

No depreciation was charged on tangible assets due to the assets not being available for use in the entity during the financial period.

9 Funds

9 Funds
	Balance at 1 Incoming Resources Balance at 31
	November 2019 resources expended October 2020
	£ £ £ £
Unrestricted funds
	9,420 23,349 (14,010) 18,759

Restricted funds
	73,023 4,749 (47,795) 29,977

Total funds
	82,443 28,098 (61,805) 48,736

Bondh E Shams

Notes to the Financial Statements for the Year Ended 31 October 2020

10 Analysis of net assets between funds

	Unrestricted	Restricted
	funds	funds	Total funds
	£	£	£
Fixed assets	3,770		- 3,770
Current assets	14,989 29,977 44,966
Total net assets
	18,759 29,977 48,736
11 Analysis of net funds
	At 1 November At 31 October
	2019 Cash flow 2020
	£ £ £
Cash at bank and in hand	82,443 (37,477) 44,966
	82,443 (37,477) 44,966
Net debt

Fro

Trustees' Annual Re ort for the eriod p p

Period start date Period end date 01 11 2019 31 10 2020

Section A Reference and administration details

Charity name Bondh E Shams

Other names charity is known by

Registered charity number (if any) 1180495

Charity's principal address 46 Hainault Road, London Postcode E11 1EE

Names of the charity trustees who manage the charity

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 18 19 20	Trustee name	Office (if any)	Dates acted if not for whole year	Name of person (or body) entitled to appoint trustee (ifany)
	Sana Ibrahim
	Hamza Farrukh
	Saima Masood

Names of the trustees for the charity, if any, (for example, any custodian trustees)

Name	Dates acted if not for whole year
N/A	N/A

TAR

March 2012

Names and addresses of advisers (Optional information)

Type of adviser Name Address N/A N/A N/A

Name of chief executive or names of senior staff members (Optional information)

Hamza Farrukh (Chair)

Section B Structure, governance and management

Description of the charity’s trusts

Constitution Type of governing document (eg. trust deed, constitution) Charitable Incorporated Organisation (CIO) How the charity is constituted

(eg. trust, association, company)

Trustee selection methods

By appointment.

(eg. appointed by, elected by)

‘Any person who is willing to act as a Trustee, and who would not be disqualified from acting under the provisions of clause 11, may be appointed to be a Trustee by a decision of the Trustees.’

Additional governance issues (Optional information)

You may choose to include additional information, where relevant, about:

Safe-guarding policy Anti-money laundering policy Confidentiality policy Memorandum of understanding with local partners

policies and procedures adopted for the induction and training of trustees;
the charity’s organisational structure and any wider network with which the charity works;
relationship with any related parties;
trustees’ consideration of major risks and the system and procedures to manage them.

TAR

March 2012

Section C Objectives and activities

Summary of the objects of the charity set out in its governing document

The objects of the Charity are: - the advancement of health; and - the relief of poverty by such means as the trustees shall from time to time decide, including providing solar-powered pumps to improve access to clean water.

Objects and aims

The advancement of health and the relief of poverty by providing safe and clean water to under-resourced communities, as a fundamental and basic need.

Objectives, strategies and activities

Advancement of Health

Summary of the main activities undertaken for the public benefit in relation to these objects (include within this section the statutory declaration that trustees have had regard to the guidance issued by the Charity Commission on public benefit)

Over 2 billion people around the world still lack access to clean water. Devastatingly, over 3.4 million people die from water-borne disease every year, most of whom are children (WHO/UNICEF 2021). More than 700 children under the age of 5, tragically die everyday from preventable diseases caused by contaminated water and lack of sanitation and hygiene (UNICEF 2021).

Yemen

TAR

March 2012

on the city. The second OASIS Box will be deployed in an extremely under-resourced community in the city of Ibb.

Relief of poverty

Water poverty is defined as a total lack of access to water of a clean and adequate quality to meet one’s basic fundamental needs, and is now a global crisis.

Our work tackles this form of poverty head on in our target communities.

Associated poverty arising out of safe and clean access to water is attributable to the devastating economic and social impact felt by waterstarved communities. 90% of water collection is done by women and children (mostly young girls). Around the world, a reported daily 200 million hours are spent collecting water, leaving little time for children to attend school and for women to work or attend to their personal development. This impacts entire communities. Our work has drastically reduced the hours spent in collecting water by the individuals in our target communities.

Additional details of objectives and activities (Optional information)

Bondh E Shams is a volunteer run charity and extremely thankful to each member of the global team for their time and ongoing contributions in making our work continuously possible.

You may choose to include further statements, where relevant, about:

policy on grantmaking;
policy programme related investment;
contribution made by volunteers.

TAR

March 2012

Section D Achievements and performance

Summary of the main achievements of the charity during the year

Closer to home in Pakistan, we implemented our first school Solar Water Project in Sadiqabad, Sindh. The project provides safe and clean water to approx.. 175 students and the surrounding community of 2000. Previously, the nearest access to clean water was 4-5km away.

We continued Research and Development of our signature water filtration unit, the OASIS Box (Off-grid Aqua Solar Integration System). The latest version of the Box contains a rain-harvesting water collection feature in line promoting further sustainability. The feature captures rain water directly leading the water-flow into our 3-tier filtration device for safe drinking. Each OASIS Box now includes data analytics technology providing volume and performance daily data (ie. the exact number of cups served each day) which can be monitored directly through our website.

In March 2020, our Founder Hamza Farrukh was awarded the 129[th] Commonwealth Points of Light award in honour of exceptional voluntary work of providing clean water to communities in Pakistan through Bondh E Shams. During March, we also held our second fundraiser in London.

Section E Financial review

Bondh E Shams holds on reserve the costs of 1 Solar Water Project Brief statement of the charity’s (OASIS Boxes) including operating costs, in addition to no less than 3 policy on reserves months operating costs for the charity in the event that an urgent project should arise ie. urgent need for safe and clean water in a target community or in response to a critical crisis, and to allow the charity to respond accordingly. Details of any funds materially No funds were materially in deficit. in deficit

TAR

March 2012

Further financial review details (Optional information)

You may choose to include additional information, where relevant about:

the charity’s principal sources of funds (including any fundraising);
how expenditure has supported the key objectives of the charity;

Our main source of funding was through donations through-out the reporting period and a fundraiser in March 2020.

The expenditure has allowed the charity to continue it’s life-saving work to provide clean water to more individuals in Pakistan, and expand our work to Yemen. This is in line with our objectives (the advancement of health and relief of poverty).

The expenditure additionally allowed us to continue R&D on the OASIS Box, which has resulted in an even more cost-effective solution.

investment policy and objectives including any ethical investment policy adopted.

Section F Other optional information

Section G Declaration

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s)

Full name(s)

Position (eg Secretary, Chair, etc)

Sana Ibrahim

Secretary

Date

23/08/2021

TAR

March 2012