REGISTERED COMPANY NUMBER: 00894740 (England and Wales) REGISTERED CHARITY NUMBER: 259740
Report of the Trustees and
Financial Statements for the Year Ended 31 December 2020
for
Medway Towns Gurudawara Sabha Limited(The)
A Star Accountancy Limited Chartered Certified Accountants and Registered Auditors 19 Beech Avenue Sidcup Kent DA15 8NH
Medway Towns Gurudawara Sabha Limited(The)
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | to | 10 |
| Notes to the Financial Statements | 11 | to | 18 |
Medway Towns Gurudawara Sabha Limited(The) (Registered number: 00894740)
Report of the Trustees
for the Year Ended 31 December 2020
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The principal activity and objective of the company is the promotion of the Sikh Religion and social and cultural interests of its members and their families.
Volunteers
Reliance on volunteers and members
The Board of Directors acknowledges that its objectives depends on volunteers and members of the Sabha who are available to provide support and assistance in the furtherance of its objectives. The Directors wishes to express its thanks to them and to all the organisations which provide it with its financial support and services in achieving its objectives.
Presentation of the financial statements
The financial statements are presented in the form required by the; Charities SORP (FRS102) 'Accounting and Reporting by Charities Statement of Recommended Practice for Accounting and Reporting issued by the Charity Commissioners for England & Wales', (effective 1 January 2015). As permitted by the Companies Act 2006, the company has adjusted the format of the financial statements to include headings relevant to its activities in order to enable it to show a true and fair view
ACHIEVEMENT AND PERFORMANCE Charitable activities
New Temple
Purchase of the premises to be used as a temple, was completed during 2008. The initial cost of the premises was £1,650,000 and was funded by an initial secured loan of £1,320,000 and donations received by the company. The initial loan has been repaid and further replacement loan granted for £1,942,000. During the year repayments of £81,788 (2019 £142,610) have been made against this loan and £1,098,237 (2019 £1,128,069) remains outstanding. NB capital repayments were lower in the year as the Temple switched to paying the interest only element as negotiated with the company's bankers under Covid 19 special provisions.
The construction activities were completed during 2013 and certain improvements are ongoing and planned, which included Lift improvements during the financial year.
Covid 19
The Temple reduced its opening hours and suspended all services as per government guidelines.
Temple stayed open from 8am to 5pm for personal prayers only, community was asked to abide by the Covid rules and only stay for few minutes.
A One way system was set up. Temperature checks were put in place. A Track & Trace register was set up.
FINANCIAL REVIEW
Principal funding sources
Traditionally the charity relies primarily upon donations for its income. Due to Covid 19 related closures income from donations was down during the year but the charity claimed furlough grants where appropriate.
Page 1
Medway Towns Gurudawara Sabha Limited(The) (Registered number: 00894740)
Report of the Trustees
for the Year Ended 31 December 2020
FINANCIAL REVIEW
Investment policy and objectives
The company continually reviews its cash position and deposits surplus funds in interest- earning deposit accounts.
Results
A deficit of £31,934 (2019: £55,449 surplus) was recorded in the year ended 31 December 2020 which reduced accumulated funds at 31 December 2020 to £,2722,872 (2019: £2,754,806).
Expenditure reduced during the year by £71,000, (primarily due to reduced wages & operational costs due to covid closures) down to £260,328 (2019: £331,227)
Income also decreased by £48,117 to £,223,538 (2019: £386,776) (again primarily due to Covid 19 restricting normal operation & events & consequently donations).
Improvements were carried out during the year on Lift equipment for £31,500 which was capitalised as improvements.
FUTURE PLANS
A Legal action was commenced against the charity after the balance sheet date as outlined in the Post Balance Sheet note & Contingent Liability note in these financial statements.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Medway Towns Gurudawara Sabha Limited is a company limited by guarantee and a registered charity (No.259740). It is governed by its Memorandum and Articles of Association and The Working Constitution of the Sabha (meaning congregation). The Members of the Council of Management constitute Members of the Sabha and are appointed to serve as Directors.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
00894740 (England and Wales)
Registered Charity number
259740
Registered office
Medway Towns Gurudawara Sabha Ltd (The) 1 - 5 Lankester Parker Road Rochester Kent ME1 3QU
Page 2
Medway Towns Gurudawara Sabha Limited(The) (Registered number: 00894740)
Report of the Trustees
for the Year Ended 31 December 2020
Trustees
Karnail Singh Dhillion President / Stage Secretary Mota Singh Shokar Vice President Balbir Singh Dhudwar Chairman / Librarian Surinderpal Singh Sandhu General Secretary Sohan Singh Dhillon Assistant General Secretary Avtar Singh Kooner Treasurer Sukhraj Singh Sandhu Assistant Treasurer Parminder Singh Upple Stage Secretary Javinder Kaur Storekeeper Avtar Singh Dhillon Supporting Sevadaars Balbir Singh Ghattora Gurbakash Kaur Supporting Sevadaars Harbans Singh Bhatal Supporting Sevadaars Harbhajan Kaur Ghattora Supporting Sevadaars Harpal Singh Sahota Education Lead Joga Singh Mahal Palwinder Kaur Chakkar Supporting Sevadaars Ranjit Kaur Supporting Sevadaars Inderjit Kaur Randhawa Pyara Singh Kang
Company Secretary
Surinderpal Singh Sandhu
Auditors
A Star Accountancy Limited Chartered Certified Accountants and Registered Auditors 19 Beech Avenue Sidcup Kent DA15 8NH
EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.
TRUSTEES' RESPONSIBILITY STATEMENT
The names of the members of Board are set out on page 1. In addition there are several members from the community who provide direct support to the activities of the Gurudawara.
Directors' responsibilities
Charity Law and Company law require the Board to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and of the statement of financial activities of the company for that year. In preparing those financial statements the Board is required to:
o Select suitable accounting policies have been used and applied consistently; o Make judgements and estimates that are reasonable and prudent;
o Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business; and
o State whether applicable accounting standards and statement of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.
The Directors are also responsible for maintaining proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 3
Medway Towns Gurudawara Sabha Limited(The) (Registered number: 00894740)
Report of the Trustees
for the Year Ended 31 December 2020
AUDITORS
The auditors, A Star Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 23 March 2022 and signed on its behalf by:
Avtar Singh Kooner - Trustee
Page 4
Report of the Independent Auditors to the Trustees of Medway Towns Gurudawara Sabha Limited(The)
Opinion
We have audited the financial statements of Medway Towns Gurudawara Sabha Limited(The) (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting 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).
-
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its 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.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable 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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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 this gives rise to a material misstatement in the financial statements themselves. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
-
the charitable company has not kept adequate accounting records; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Page 5
Report of the Independent Auditors to the Trustees of Medway Towns Gurudawara Sabha Limited(The)
Responsibilities of trustees
As explained more fully in the Trustees' Responsibilities Statement, 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 a Report of the Independent Auditors 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 a 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the relevant laws & regulations of significance in the context of the entity, which included the Charities Act 2011, the Companies Act 2006, Covid 19 regulations e.g. furlough & other grants and in particular fundraising regulations for charities, employment matters & GDPR.
We also considered the relevant reporting frameworks including FRS102 and the Charity SORP.
We also considered what were the particular considerations in respect of fraud, by assessing the risks of material misstatement in respect of fraud, by making fraud enquiries during the audit of management and those charged with governance.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 6
Report of the Independent Auditors to the Trustees of Medway Towns Gurudawara Sabha Limited(The)
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees 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 charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of A Star Accountancy Limited Chartered Certified Accountants and Registered Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 19 Beech Avenue Sidcup Kent DA15 8NH
23 March 2022
Page 7
Medway Towns Gurudawara Sabha Limited(The)
Statement of Financial Activities
for the Year Ended 31 December 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Management administration Investment income 2 Other income Total EXPENDITURE ON Charitable activities Management administration Charitable Donations Other Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 160,239 64,432 26 3,698 228,395 128,154 1,213 99,462 228,829 (434) 2,723,306 2,722,872 |
Restricted funds £ - - - - - 31,500 - - 31,500 (31,500) 31,500 - |
31.12.20 Total funds £ 160,239 64,432 26 3,698 228,395 159,654 1,213 99,462 260,329 (31,934) 2,754,806 2,722,872 |
31.12.19 Total funds £ 383,777 - - 3,000 |
|---|---|---|---|---|
| 386,777 212,405 16,172 102,751 |
||||
| 331,328 | ||||
| 55,449 2,699,357 |
||||
| 2,754,806 |
The notes form part of these financial statements
Page 8
Medway Towns Gurudawara Sabha
Limited(The) (Registered number: 00894740)
Balance Sheet
31 December 2020
| Notes FIXED ASSETS Tangible assets 7 CURRENT ASSETS Debtors 8 Cash at bank and in hand CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 10 NET ASSETS FUNDS 13 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted fund £ 3,849,086 12,620 81,224 93,844 (90,940) 2,904 3,851,990 (1,129,118 ) 2,722,872 |
Restricted funds £ - - - - - - - - - |
31.12.20 Total funds £ 3,849,086 12,620 81,224 93,844 (90,940) 2,904 3,851,990 (1,129,118 ) 2,722,872 2,722,872 - 2,722,872 |
31.12.19 Total funds £ 3,864,556 44,129 48,584 92,713 (84,154) 8,559 3,873,115 (1,118,309 ) 2,754,806 2,723,306 31,500 2,754,806 |
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
The notes form part of these financial statements
continued...
Page 9
Medway Towns Gurudawara Sabha Limited(The) (Registered number: 00894740)
Balance Sheet - continued
31 December 2020
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 23 March 2022 and were signed on its behalf by:
Karnail Singh Dhillion - Trustee
Avtar Singh Kooner - Trustee
The notes form part of these financial statements
Page 10
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 1% on a reducing balance basis.
Fixtures and Fittings 25% on a reducing balance basis.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
A company vehicle was acquired on hire purchase 5th August 2014 costing £15,295 but was never capitalised & has been accounted for as an operating lease in the accounts which is a departure from SORP. This vehicle remained the property of the Lessor until an option payment was made in September 2018 at which point full title to the vehicle was effectively transferred to the charity.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Donated goods & services
Donated goods & or services are included in both income & expenditure at estimated valuation of the directors.
continued...
Page 11
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
2. INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| 31.12.20 | 31.12.19 | |
| £ | £ | |
| Deposit account interest | 26 | - |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 31.12.20 | 31.12.19 | |
| £ | £ | |
| Auditors' remuneration | 2,000 | 2,000 |
| Depreciation - owned assets | 46,970 | 42,962 |
| Hire of plant and machinery | 556 | 850 |
3. NET INCOME/(EXPENDITURE)
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
5. STAFF COSTS
The average monthly number of employees during the year was as follows:
| 31.12.20 | 31.12.19 | |
|---|---|---|
| Executive director/trustees | 33 | 25 |
| Priests | 6 | 8 |
| 39 | 33 |
No employees received emoluments in excess of £60,000.
The average number of staff during the year was 33 (2019: 33) including executive directors who receive no remuneration.
Payments were made to 6 priests (2019: 8) during the year.
continued...
Page 12
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
| 6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL INCOME AND ENDOWMENTS FROM Donations and legacies Other income Total EXPENDITURE ON Charitable activities Management administration Charitable Donations Other Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward As previously reported Prior year adjustment As restated TOTAL FUNDS CARRIED FORWARD |
ACTIVITIES Unrestricted fund £ 352,277 3,000 355,277 212,405 12,772 102,751 327,928 27,349 2,748,289 (52,332) 2,695,957 2,723,306 |
Restricted funds £ 31,500 - 31,500 - 3,400 - 3,400 28,100 3,400 - 3,400 31,500 |
Total funds £ 383,777 3,000 386,777 212,405 16,172 102,751 331,328 55,449 2,751,689 (52,332) 2,699,357 2,754,806 |
|---|---|---|---|
continued...
Page 13
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
7. TANGIBLE FIXED ASSETS
| COST At 1 January 2020 Additions At 31 December 2020 DEPRECIATION At 1 January 2020 Charge for year At 31 December 2020 NET BOOK VALUE At 31 December 2020 At 31 December 2019 |
Freehold property £ 4,156,525 31,500 4,188,025 316,246 38,666 354,912 3,833,113 3,840,279 |
Fixtures and fittings £ 121,748 - 121,748 97,471 8,304 105,775 15,973 24,277 |
Totals £ 4,278,273 31,500 |
|---|---|---|---|
| 4,309,773 | |||
| 413,717 46,970 |
|||
| 460,687 | |||
| 3,849,086 | |||
| 3,864,556 |
A minibus acquired at a cost of £15295 in 2014 under an HP agreement which ended in September 2018 when full title to the vehicle was passed to the charity by way of a final option payment. However, the vehicle has never been capitalised in the company's financial statements which is a departure from SORP. The vehicle currently remains in use.
The Dome Shield Project was aborted early in 2018, as it was decided by the trustees that ongoing, charity funds would be better spent on other projects under consideration at that time.
Total costs to date, included in Tangible Fixed Assets as at the balance sheet date were £5,300 relating to professional services & fabrication of the metal framework etc. Accordingly these costs net of £53 depreciation to 2017, were written-off by way of an impairment adjustment in the previous year's financial statements as shown in the comparatives.
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 31.12.20 | 31.12.19 | |
|---|---|---|
| £ | £ | |
| Other debtors HSBC | - | 4,733 |
| Prepayments & accrued income | 12,620 | 39,396 |
| 12,620 | 44,129 |
continued...
Page 14
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
| 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.20 £ Bank loans and overdrafts (see note 11) 79,120 Social security and other taxes 4,277 Accrued expenses 7,543 90,940 10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.12.20 £ Bank loans (see note 11) 1,069,118 Other loans (see note 11) 60,000 1,129,118 11. LOANS An analysis of the maturity of loans is given below: 31.12.20 £ Amounts falling due within one year on demand: Bank loans 79,120 Amounts falling due between two and five years: Other loans - 2-5 years 60,000 Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal 1,069,118 |
31.12.19 £ 69,760 2,782 11,612 84,154 31.12.19 £ 1,058,309 60,000 |
|---|---|
| 1,118,309 | |
| 31.12.19 £ 69,760 |
|
| 60,000 | |
| 1,058,309 |
Secured bank loans were taken to assist with the purchase and construction of a new premises in 2011. The loans are secured by a mortgage debenture over all of the company's freehold property and assets.
Interest is charged on the various tranches of the loan, with various repayment terms, ranging between 4% and 6%.
Additional security has been provided by members of the board to secure the loans.
Other loans represent long term interest free loans from Gurudawara members.
Page 15
continued...
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
12. SECURED DEBTS
The following secured debts are included within creditors:
| 31.12.20 | 31.12.19 | |
|---|---|---|
| £ | £ | |
| Bank loans | 1,148,238 | 1,128,069 |
The following legal charges exist over the assets of the company in favour of the company's bankers:
A' First Legal Charge' over freehold property at 1 - 5 Lankaster Park Road, Rochester, ME1 3QU
A 'First Legal Charge' over freehold property at Cossack Street, Rochester ME1 4DQ
A 'First Legal Charge' from Drumyard Ltd over freehold property at MSD Warehouse, 31 Second Avenue, Chatham, ME4 4DQ
An 'All Moneys Gurantee' from Drumyard Ltd for a principle sum of £1,900,000 plus interest and other costs as detailed in the guarantee, together with MSD Warehouse, 31 Second Avenue, Chatham, ME4 5AU and such other security as the bank may from time to time hold in respect of debts and liabilities of the guarantor(s) to the bank.
An 'Unlimited Debenture' from Medway Towns Gurudawara Sabha Limited (The).
13. MOVEMENT IN FUNDS
| Unrestricted funds General fund Restricted funds Lift provision fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund Restricted funds Lift provision fund TOTAL FUNDS |
At 1.1.20 £ 2,723,306 31,500 2,754,806 Incoming resources £ 228,395 - 228,395 |
Net movement in funds £ (434) (31,500) (31,934) Resources expended £ (228,829) (31,500) (260,329) |
At 31.12.20 £ 2,722,872 - 2,722,872 Movement in funds £ (434) (31,500) (31,934) |
|
|---|---|---|---|---|
Page 16
continued...
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
13. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds World Cancer Care Donations Lift provision fund TOTAL FUNDS |
At 1.1.19 £ 2,748,289 3,400 - 3,400 2,751,689 |
Prior year adjustment £ (52,332) - - - (52,332) |
Net movement in funds £ 27,349 (3,400) 31,500 28,100 55,449 |
At 31.12.19 £ 2,723,306 - 31,500 |
|---|---|---|---|---|
| 31,500 | ||||
| 2,754,806 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds World Cancer Care Donations Lift provision fund TOTAL FUNDS |
Incoming resources £ 355,277 - 31,500 31,500 386,777 |
Resources Movement expended in funds £ £ (327,928) 27,349 (3,400) (3,400) - 31,500 (3,400) 28,100 (331,328) 55,449 |
Resources Movement expended in funds £ £ (327,928) 27,349 (3,400) (3,400) - 31,500 (3,400) 28,100 (331,328) 55,449 |
|---|---|---|---|
| 28,100 | |||
| 55,449 |
During the previous year a donation was agreed by Mr & Mrs Panesar, in memory of their Mother, providing £31,500 for the provision of lift equipment accounted for as a restricted fund. Work commenced during the year and the lift was commissioned during 2020.
14. CONTINGENT LIABILITIES
The charity has a contingent liability for circa £59k, in respect of a legal action outlined in the note on Post Balance Sheet Events.
continued...
Page 17
Medway Towns Gurudawara Sabha Limited(The)
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
15. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2020.
16. POST BALANCE SHEET EVENTS
Since the Balance Sheet date the charity has been subject to 'legal action' & the total estimated financial effect of the action is currently estimated at between £55k - £60k
As the claim only arose after the balance sheet date it is considered to be a non-adjusting event and no provision has been made in these financial statements in respect of the action,
17. ULTIMATE CONTROLLING PARTY
The Charity is controlled by its Management Committee acting as director/trustees
18. SHARE CAPITAL
The company is limited by guarantee and has no share capital.
In the event of a winding up, the Council of Management shall exercise their right to give and transfer the assets of the Sabha to the Shromani Gurudawara Parbanthak Committee, Amritsar, India or any other institution or institutions having charitable objectives similar to the objectives of the Sabha.
Page 18