Company registration number 00894740 (England and Wales} Charity registration number 259740 (England and Wales) MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2024 MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) LEGAL AND ADMINISTRATIVE INFORMATION Tnjstees MrG S Chaggai Mrs P K Chakkar IAppoinled 22 July 20241 IAppoinled 10 Decemb8r 20251 IAppointed 22 July 20241 MrPSD&hl Mr B S Ohudwar Mr B S Ghattaora MrA S Kooner Mr S S Sahoia Mrs S Sandhu Mr M S Shokar Mr A Singh Mr P Singh Mrs J K Thind (Appointed 22 July 20241 (Appointed 22 July 20241 (Appointed 22 July 20241 (Appointed 22 July 20241 Secretary Mr G S Chaggar Country of incorporation United Kingdom (England and Wales) 00894740 Charity registration England and Wales 259740 Registered office 1-5 Lankesler Parkèr Road Rochester Kent MEI 3QU Auditor Samuels LLP 3 Locks Yard High Street Sevenoaks Kent TN13 1LT MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) CONTENTS Page Charity report Independent auditorfs r&port Slalerllenl of financial activities Balance sheet Notes lo the financial slal8menls 10-19 MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) CHARITY REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 30 DECEMBER 2024 The trusl88s present their annual report and financial slalemenls for the year ended 30 Decemb&r 2024. Thè financial slalemenls have be8n prepared in accordance with the accounting policies sel out in note 1 to the Inaneial slalemenls and comply with tha charity's goveming document, the Companies Act 2006, FRS 102 The Financial Reporting Standard applicable in the UK and Republic ol Ireland. and the Charities SORP "Accounting and Reporting by Charities.. Slalemenl of Recommended Pract￿¢9 applicable lo charits'es prepaiing their accounis in accordanc8 with the Financial Reporting Standard applicable in thè UK and Republic of Ireland IFRS 1021.. Objeetives and activities The principal activity and objective of the charity is the promotion of th8 Sikh religion and social and cultural inler8sI of ils members and their families. Public benefit Th& Iruslees have paid due regard lo guidanc8 issued by the Charity Commission in deciding what aclivili8s the charity should undertak&. Volunl8ers Reliance on volunteers and members. The Board of Trustees ackna￿edgeS that ils objectives depends on volunteers and mèmbers of the Sabha who are avai5abl8 lo provid& support and assistance in the lurtharance of ils objectives. The Tiuslees wishes lo express ils thanks lo them and lo all the organisalions which provide it with ils financial support and services in achieving ils objectives. Achievements and perfomiance Significant acliviti8s and achievements against objectives New Templ& Purchase of the pr8misos lo be used as a lerllple, was compl8led duiing 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 receivad by the Charity. The initial loan has been repaid and furth8r replacement loan granted for £1,942,000. During the yèar, repayments ol £152,99312023 £148,080) have been made against this loan and £800.07512023 £867,158) remains oulslanding. Financial review Tfadilionally the Charity relies primarily upon donations for its income. A surplus of £172.091 12023 £1 $2,261) was recorded in the year 8Dded 3151 December 2024 which increased accumulated funds as al 31 sl December 2024 10 £3,212,73012023 £3.040,6391. Expgndilure decreased slighuy by £8,718 Its £314,78012023 £323,498). Income a150 incr8ased by £11,11110 £486.87112023 £475,760). Donalions lo other charities during the year were.. Guru Nanak Gurdwara Camberley £2,500 Aeromel £1.002 Pinglawara Charity Donation £ 701 Cancer Research £ 200 Rac& lor Life £ 20 Res&Nes poliGy 11 is th8 policy of the chafflly that unreslricled funds which have not been designal8d for a sp&cific use should be mainleined al a lev818quivalenl lo bebMe8n three and six month's expenditure. The Irus18es considor that res8rv&s al this level will ensure Ih¢il, in the &v&nl of a significant diop in funding, they will be able lo continue the charity's current aclivili8s while consideration is given lo ways in which additional funds Tnay be raised. This level ol reserves has been maintained throughout the year. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) CHARITY REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024 Investment policy The Charity continually revièws ils cash position and deposits surplus funds in interest dgposil accounts. Plans for future periods The Charity looks fopNard lo r&main fully operational throughout 2025 and will be open for wedding bookings. Structure, governance and management The charity is controlled by ils governing document, a deed of trust and conslilules a limited company, limited by guarantee, as dafined by the Companies Act 2006. The Medway Towns Gurudwara Sabha Limilgd is a COFnpany limited by guarantee and a r8gisler8d charity Ino. 2597401. 11 is govgmed by ils Mèmorandum and Articles ol Associations and The Working Conslilulions ol the Sabha (meaning congregalionl. The Members ol th8 Council ol Managément constitute Memb8rs ol th8 Sabha and are appoinlad lo serve as Directors. The trusteès. who are also th8 dirgclors for the purpose ol company law, and who servad during the y&ar and up lo th8 dale ol signature of the financial slalemenls werg.. Mr G S Chaggar IAppoinled 22 July 20241 Mr8 P K Chakkar (Appointed 10 December 20251 Mr P S Dehl - Prasidenl (Appointed 22 July 20241 Mr B S Dhudwar Mr B S Ghattaora Mr A S Kooner- Tr8asur8r Mr S S Sahola Mr S S Sandhu - General Secretary Mr M S Shokar Mr A Singh Mr P Singh Mrs J K Thind Mr K S Dhillion MrRBKaui Mr S S Palaria (Appointed 22 July 20241 (Appointed 22 July 20241 (Appointed 22 July 20241 (Appointed 22 July 20241 (Resigned 1 T November 20251 IR2signed 17 November 20251 (Appointed 22 July 2024 and resigned 17 November 20251 MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) CHARITY REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024 R8cruitmenl and appoinlm&nl of Iruslees The outgoing Management Committee nominate or appoint an Elecb'on Board prior lo thè elgclion. The Election Board consists of five members of the Managemént Committee lo oversee the proc8duro and fairness of the election ol th& incoming Managgmgnl Committeè. El8clion and Composition The Management Committee are elected for 2-year term as por the voting procedur&. Vacancies in the ManagBmenl Committee may be filled during term lime. Members over th8 age of eighteen years are eligible for casting tho vole. All or any rllembers of the pr8vious council shall ba eligible for re-election. The Council of Management consists ol twenly-lour members, plus the Chairparson. There are eight members, (minimum ol two fèmal8 m8mbersl, fiom each of the following 2reas'. Slrood and surrounding ruial suburbs Rochester and surrounding rural suburbs Chalham, Walderslade, Lordswood and rural suburbs One m8mb8r will be nofninaled by the President Irprn any area ol calchmgnls. None of the Irus18e8 has any beneficial inleresl in the company. All ol the Iruslges ar& members of the company and guarantee lo conlribul8 £1 in the event ol a winding up. Statement ol charity responsibilities The Iruslees, who ar& also the directors ol Medway Towns Gurudawara Sabha Limited (Thel for the purpose ol company law, are responsible for preparing the Charily Report and the financial slalerll8nls in accordance with applicable law and United Kingdorn Accounting Standards IUnil6d Kingdom G&nerally Accepted Accounting Praclicel. Company law raquires the Iruslees lo prepare financial stal8menls lor each financial y&ar which give a true and lair view c)f the slate ol affairs of the charity and ol the incoming resources and application ol resources, including the income and oxpen¢Jilure, ol thé charilabla company for that year. In preparing thèse financial slalemenls, the Iruslees are requiied lo.. select suitable aceounling policies and then apply them consislenlly., observe the methods and principles in th8 Charities SORP., ak& judgements and eslimales that are i&asonable and prudent., and prepai& th8 financial slalemenls on the going concern basis unless it is inappropriate lo presume that th& charity will continue in operation. The Iruslees are r8sponsible for keeping adequate accounting records that disclose with reasonable ac¢uiacy al any th& financial p08ilion of the charity and enable thom lo ensure that the financial statements comply with the Companies Act 2006. They are also résponsible lor safeguarding the assels ol the charity and hence lor taking reasonable steps for the prevention and detection of fraud and other irrégularities. AuditOT In accordance wlh the company s articl8s, a resolution proposing that Samuels LLP be reappointed as auditor of the company will be pul al a General Meeting. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE CHARITY REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024 Statement of dlsclosure to auditor Each ol the Iruslees has confirmed that there is no information ol which Ih8y are aware which is relevant lo tho audit, bul of which the auditor is unawar8. They have further confirm&d that they havè taken approprialg 51?ps lo identify such rél8vanl infom)alion and lo establish that the auditor is aware of such information. The charity rewrt was approved by the Board ol Truslegs. MrPSD&hl Oalg.. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MEDWAY TOWNS GURUDAWARA SABHA LIMITED {THEI Opinion We hav& audited the financial sla18menls of Medway Towns Gurudawara Sabha Limited (Th81 (the 'charily'l for the year ended 30 December 2024 which comprise the slalemenl of financial aclivili&s, the balance sheet and notes lo the financial slalements, including significant accounting policies. The financial reporting framework that has beèn applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporling Standard 102 The Financial Reporting Standard applicable in the UK and Republic ol Ireland (United Kingdom Generally Accepted Accounting Practicel. In our opinion, the financial slalemenls.. giv8 a truè and fair view ol the slate ol the charitable company's affairs as al 30 December 2024 and ol ils incoming resources and application of resources. for the year then ended., have been properly prèpared in accordance with United Kingdom Generally Accepted Accounting Praclicg., and have been preparèd in accordanc8 with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilitiès for the audit of the financial slalemenls section of our report. We ar& independent of the charity in accordance with Ihe ethical requirements that are rèlevant lo our audit ol the financial slalements in the UK, including the FRC'S Ethical Standard, and wg have luifillad our other ethical r&sponsibililies in accordance with thes& requiretllenls. We believe that the audit evidenc6 we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slalemenls, we have conclud8d that the charity use Of the going concern basis of accounting in the preparation ol the financial slalemenls is appropriate. Based on the work we have performed, w8 hav8 not identified any material uneertainlies relating lo events or CDndilions that, individually or collecliv8ly, may cast signifiGanl dout>l on the charity's ability lo continue as a going concern lor a p&riod of al least twelve months from when the financial slalemenls are authorised lor issue. Our responsibilities and the r8sponsibililies of th8 Iruslaas with respect lo going concern are described in the relevant sections ol this report. other information The other information comprisos the information included in Ihe annyal report olhor than th8 financial statements and our audilorfs report Ihereon. The Iruslees ar8 responsible for th8 other information contained within the annual report. Our opinion on the financial slalemenls does not cover the other inforrTialion and we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether thè other inloimalion is materially inconsislenl with the financial 51al&menls or our knowledge obtained in the course ol the audit, or olhetwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalem&nls, we are required lo determine whether this gives rise lo a material misslalemenl in the financial slalemenls themselves. If, based on the work w& have performed, we conclude that there is a material misslalem8nl of this other information, we are required lo report that lacl. We have nothing lo report in this regard. Matters on which we are required to report by exceptiOTt We hav8 nothing lo report in respect ol the following matters in rèlation lo which the Charities (Accounts arKJ R&portsl Regulations 2008 requiies us lo report lo you if. in our opinion. the infotmalion given in the financial slal&menls is inconsislenl in any material respoct with the charity rèport", or sufficient accounting record5 have not been kept," or the financial slaleillenls are not in agregmenl with the accounting records., or wo have not r8ceived all the information and explanations we require for our audit. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) INDEPENDENT AUDITOR'S REPORT (CONTINUEDI TO THE TRUSTEES OF MEDWAY TOWNS GURUDAWARA SABHA LIMITED {THE) Responsibilities of trustees As explained more fully in the slalemenl of charity responsibilities, the Irusleès, who arg also Ihe directors of thè charity lor tha purpose DI company law, are responsible lor the preparation of the fillallcial slalemenls and lor being salislied that Ihay give a true and lair vi8w, and lor such inlemal control as the Iruslees delarmine is necessary lo enable the preparation of financial slalemenls that are free from material misslalem8nl, whether due lo fraud or eiror. In pr8paring the financial st21emenls, the Iruslees are responsible for assessing tho charity's ability lo continue as a going concern, disclosing. as applicable, matters related lo going concern and using the going concern basis of aceounling unless the Iruslees either intend lo liquidate the charitable company or lo cease operations, or have no rea5isl'c allemalive bul lo do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and ielevanl regulations made or having effect Ihereunder. Our objectives ar& lo obtain reasonable assurance about whether the financial slalemgnls as a whol8 ar8 free from material misslalemenl, whether du8 lo fraud or error, and lo issue an audilols report that includes our opinion. Reasonable assurance is a high level ol assurance bul is not a guaranlaa that an audit conduclfjd in a¢cordance wilh ISAS IUKI will always delecl a material misslalemenl when il exists. Misslalemenls can aris8 from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expeclad lo influence the economic decisions of users taken on the basis of these finanoal slal8menls. The 8xtenl lo which our procedures arè capable of delecling irregularities, including fraud, is detailed belov4. Our approach lo id&nlifying and ass8ssing the risks ol rnalerial misslalemenl in respect of irregularities, including fraud and non-compliancg with laws and regulations, was as follows.. the engag8m8nl partnor ensured that Ihg gngagemenl team coll8cliv&ly had the appropriate compglence, capabilities and skills lo identify or ret￿nIg& non-complianc& with applicabl8 laws and regulations., wa identified the laws and regulations applicable lo the charity through discussions with manageTnenl, and from our commercial knowledge and experience of the sector., we focused on spècific laws and regulations which wa considered may have a direct Tnalerial effect on the financial slal&menls or the operations of the charity.. we identified laws and rggulalions wer& communicaled within the audit tgam regularly and Ihg team remained alert lo inslancÈs ol non4ompliance throughout the audit., we mad8 enquiiies of management as lo where they consider8d there was susceptibility lo fraud, their knowledge ol actual, suspected and alleg&d fraud., we considered the internal controls in place lo miligal? risks of fraud and non-compliance with laws and regulations., Wè Performed analytical prO￿dureS lo identify any unusual or unexpected relationships., we assessed whether judgements and assumptions rnade in delarmining th8 accounling eslirnales were indicalivg of potential bias-, we invesligaled the rationale behind significant or unusual Iransaclions. we agreed financial slalemenl disclosures lo underlying supporting documenlalion. we rèad the minutes of meglings DI those charged with govèrnance., we made enquiries of management as lo actual and potential litigation and claims.. There are inherent limitations in our audit procedures described abov8. The more rernov8d that laws and regulations ar8 from financial Irans3clions, the le55 likely il is that we would becom& awar& ol non-cotnpliance. Auditing standards also limit the audit procedures required lo identify non-compliance with laws and regulations b enquiry of thè directors and other rnanagemenl and the inspection of regulèlory and legal correswndence. if any. Material misslalemenls that arise due lo fraud can be harder lo del&cl than those that arise from error as they may involv8 deliberate concealment or collusion. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) A further description ol our responsibilities is availablo on the Financial Reporting Council's website al.. httpsjl www.frc.org.ukJauditorsresponsibililies. This description fomis part of our audilorfs report. Use of our report This report Is made solely lo th8 charity's Iru51eès, as a body, in accordance with Part 4 01 the Chari118s IAccounls nd Report51 Regulations 2008. Our audit work has been und8rtaken so that we might slate lo the charity's Iruslees those m811ers we are required lo slate lo them in an auditor's r8POrt and for no other purpos8. To the fullest exlenl peimitted by law, we do nol accepl or assume responsibility lo anyone other than the charity and the charity's Iruslees as a body. for our audit work, for this report, or for the o s we hav& formed. Mr Sumail Narula (Senior Statutory Auditor) Foi and on behalf of Samu&ls LLP. Slalulory Auditor Charteiod Accounlanls 3 Locks Yard High Street S8venoaks Kent TN13 1LT Oale.. 2¢ Samuels LLP is eligible for appointment as auditor ol the charlty by virtue of ils eligibility lor appointment as auditor of a cofflpany under s8clion 1212 01 the Companies Act 2006. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 DECEMBER 2024 Unrestricted fund5 2024 Restricted funds 2024 Total Unrestricted funds 2023 2024 Notes Income from: Donations and legacies Inveslmgnls 479,879 1,992 5,000 484,879 1.992 475,571 189 Total income 481,871 5,000 486,871 475,760 Expenditure on.. Charitabl8 activities othei expenditure 253,870 60,910 253.870 60,910 258,616 64,882 Total expenditure 314,780 314,780 323,498 Net income and movement in funds 167,091 5,000 172,091 152,262 Reconciliation of funds: Fund balances al 1 January 2024 3,040,639 3,040,639 2,888.377 Fulld balances at 30 December 2024 3,207,730 5,000 3,212,730 3,040,639 The slalemenl ol financial activi￿.&S includes all gains and losses recognised in the year. All inwmo and expenditure deriva from continuing aclivilies. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) BALANCE SHEET AS A T 30 DECEMBER 2024 2024 2023 Notes Fixed assets Tangible assets 11 3,700,279 3,735,791 Current assets Debtors Cash al bank and in hand 12 46,772 276,890 84,525 140.410 323,662 224,935 Creditors: amounts falling due within one year 14 1103,2161 1114,6071 Nel current assets 220,446 110,328 Total assets less current liabilities 3,920,725 3,846,119 Creditors- amounts falling due after more than one year 15 1707,9951 {805,4801 Netassets 3,212,730 3,040,639 The funds of the charity Reslricled income funds Unieslricled funds 17 18 5,000 3,207,730 3,040,639 3.212,730 3.040.639 The company is enlill&d lo the exemption from the audit requirement contained in s&cb'on 477 of th8 Companies Act 2006, lor the year ended 30 D8cembor 2024 The directors aCkno￿edge their responsibilities lor complying with the requirements ol th& Companies Act 2006 with respect lo accounting records and the preparation of financial slal&menls. The m&mbers have not required the company lo obtain an audit of ils financial slalements under the requirements ol the Companies Act 2006, for the year in question in accordance with section 476. These financial slalemgnls hav8 been prepared in accordance with the piovisions applicable lo compani88 subject lo the small companies regime. The financial slal8menls wero approv￿ by th& Iruslees on MrPSD8hl Mr A S Kooner MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 DECEMBER 2024 Accounting policies Charity infomiation Medway Towns Gurudawara Sabha Limiled (The) is a private company limilad by gLJaranle8 incorporated in England and Wales. The regisl8red office is 1-5 Lankesl8r Parker Road. Rochester, Kant. ME13QU. 1.1 Basis of preparation Thè financial slalemonls have been prepared in accordance with the charity's governin9 document, the Cornpani&s Act 2006, FRS 102 "The Financial Reporting Standard applicable in thè UK and Republic of Irsland" and the Charili&s SORP "Accounting and Reporting by Charilies.. Statement of Recommended Practice applicable to charities preparing their accoun15 In accordance with the Financial Reporting Standard applicabl8 in the UK and Republic ol Ireland IFRS 1021.. The charity is a Public Benefil Enlily as defined by FRS 102. The charity has taken advantage ol the provisions in the SORP lor charities not lo prepar8 a slalemenl of cash flows. The financial slalémenls arg prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial sialements are rounded lo the nearest £. Thè financial slalemenls have b8en prepared undar the historical cost convention. Th& principal accounting policies adopted are set out below. 1.2 Going concern Al the lim& ol approving the financial slalemenls, the Iruslees have a rÈa8onable expectation that the charity has adequate rèsources lo continue in opgralional existence for th& loreseeabl& lulure. Thus the Iruslges continue lo adopt the going concern basis of accounting in preparing the financial stslemenls. 1.3 Charitable fLtnds Unreslricled funds are available for use al thè discr8lion ol the Irusle8s in furtherance of their charitable objectives. Reslricled funds aig subject lo specific conditions by donors or grantors as ID how they may be used. The purposes and uses of the reslricled funds ar& sel out in the nol8s lo the financial slalemenls. Endowm8nl funds are SLJbjecl lo specific conditions by donors that the capital musl be maintain￿1 by the charity. 1.4 Income Incom8 is r8cognised when th& charity is legally enb'uèd lo il after any perfomiance conditions have been mot. the amounts can be mgasured reliably, and il is probable that incom& will be received. Cash donations are recognised on receipt. Other donations ar8 recognised once the charity has been notified ol the donation, unless p&rforman¢e conditions requir6 deferral ol th8 amount. Income lax recovèrable in relation lo donations received under Gift Aid or deeds of covenant is recognised al the lim8 of the donation. Legacies are recognised Dn receipt or olhernise if the charity has been nolifiÈd of an impending dislribulion. thè amount is known, and receipt is expected. 11 th8 amount is not known. th& legacy is Irealed as a conlingenl a8sel. 10- MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 DECEMBER 2024 Accounting policies Icontinuedl 1.5 Expenditure Expendilur8 is recognised onc& there is a legal or conslrucliv& obligation lo transfer economic benefit lo a third paty, il is probable that a Iransler ol economic benefits will be required in settl&menl, and the amount ol the obligation can be Tngasurèd reliably. Exp8ndilure 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 aclivily. Direct costs attributable lo a single activity are allocated dirgclly lo Ihal aclivily. Shared costs which conlribulo lo more than one activity and support cosls which are not attributable lo a single activity are apportiongd between those aclivili&s on a basis consisltsnl with the use ol resources. Central staff costs are allocaled on the basis of lime spent, and doprecialion charges are ellocated on the portion of the asset's Ljse. 1.6 Tangible fixed asset$ Tangible fixed assets are initially tMeasur8d al cost and subs8quenlly measured at cost or valuation, nel ol depreciation and any impairment losses. Depreciation is recognised so as lo wrile off the cost or valuation of assels18ss their residual values over their uséful lives on the following bases.. Fraehold land and buildings Plant and equipment Fixtures and fillings 10/0 reducing Balanco 250h reducing balance 25¥0 reducing balance The gain or loss arising on the disposal of an asset is delenrined as the difference b8tween the sale proceeds and the carrying value ol the asset, and is recognissd in the slalemenl ol financial aclivilies. 1.7 Impairment of fixed assets Al each reporting and da18, the charity reviews the carrying amounts of ils tangible ass8ls lo delerming whether there is any indication that those assets have suffered an impairrnenl loss. If any such indication exists, the recoverable amount ol the ass&1 is &slimaled in order lo determine the exlenl of the impaiimenl loss lil any). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-lemi liquid investments with original malurilies of throe months or less, and bank ovèrdrafts. Bank overdrafts a￿ shown within borrowings in currenl liabili11gS. 1.9 Financial instruments The charity has elecl&d lo apply the provisions ol Soclion 11 '8asic Financial Instruments, and Section 12 'Olh8r Financial Inslturllents Issuos, ol FRS 10210 811 ol ils financi81 inslium8nls. Financial inslrumenls are recognised in the charity's balance sheet when the charity becomès paty lo ltte conlraclual provisions ol the inslrumenl. Financial ass&ls and liabilities are offs&l. with the nel amounts presented in the financial stalerllenls. when IheFe is a legally enforceable right lo sel off the recognised amounts and there is an intention lo sett18 on a nel basis or lo realise tho asset and settle the liability simultaneously. MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 30 DECEMBER 2024 Aceounting policies (Continued) Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially m&asurod al transaction price including transaction costs and ar& subsequently carried al amortised cost usino the effective interest Tllelhod unless the ariangemenl conslilules a f1nancing Iransaclion, where the transaction is measured al the present value of the future receipts discounted al a market ral& of inlefesl. Financial assets classifiad as receivable within one y8ar are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans ara initially recognised al transaction price unless the arrangerllenl eonslilules a financing Iiansaetion, where Ihe debt instrument is measured al th8 present value of the lulure payments discounted al a market rale of interest. Financial liabilities classified as payable within on8 year arg not amortised. Oebl inslrumonls ar8 subsequently carried al amortised cost, using the effectiv8 inler&sl rale method. Trade creditors ar& obligations to pay for goods or seNices that hav8 been acquired in the ordinary cours8 of oparalions from suppliers. Amounts payable are classified as curienl liabilities if payment is due within one year or less. 11 not, Ih&y are pr8s8nled as non-currenl liabilities. Trade creditors are recognised inity'ally al transaction price and subsequently measured al amortised cost using the effective interest method. Derecognifion of financial liabilities Financial liabilities are derecognised wh8n th6 charity's conlraclual obligations expire or are discharged or cancelled. 1.10 Taxation The charity is exémpl from Corporation Tax on ils charitable aclivilies. 1.11 Employee benefits The cost ol any unused holiday &nb'llemenl is recognised in Ihe period in which the amploye8's services ar8 received. Termination benefits afa recognised immediately as an axpense when Ihg charity is demonstrably committed lo lerminale the employment of an omployee or lo prowde lerminalion benefits. 1.12 Retirement benefits Paymellls lo defined contribution relir8menl ben8fil schemès ar8 charged as an expèns& as they fall due. Critical aceounting estimates and ju(Igements In the application ol the charity's accounting policies, th8 Iruslees are required lo makè judgements, eslimales and assumptions about the carrying amount ol assets and liabililios that are nol readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other laclois that are considered lo be relevant. Aolual results may differ from these eslimales. The eslimales and underlying assumptions arè roviewed on an ongoing basis. Revisions lo accounting eslimalos are recognised in the period in which Ihe estimate is revised wher& the revision affects only that period, or in the peiiod of th8 revision and future periods wherg lh8 revision affects both currenl and future periods. 12- MEDWAY TOWNS GURUDAWARA SABHA LIMITED (THE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 30 DECEMBER 2024 Income from donations and legacies Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Totsl 2024 2023 Donations and gifts Grants 479,879 479,879 5,000 475,571 475,571 5,000 479.879 5,000 484,879 475,571 475,571 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 1,992 189 13- o ¢vco u)