SATMAR LIMITED - Charities report - 21.1

REGISTERED COMPANY NUMBER: 05544490 (England and Wales)

REGISTERED CHARITY NUMBER: 1115025

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

FOR

SATMAR LIMITED

Page

Report of the Trustees

1

to

2

Independent Examiner's Report

3

Statement of Financial Activities

4

Statement of Financial Position

5

to

6

Statement of Cash Flows

7

Notes to the Statement of Cash Flows

8

Notes to the Financial Statements

9

to

16

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 August 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 main objective of the charity was that of relief of poverty, sickness and infirmity amongst persons of the Jewish faith, advancement of orthodox Jewish religious education and Jewish faith.

Significant activities

The financial results of the charity's activities for the period ended 31 August 2020 are fully reflected in the attached financial statements together with the notes thereon.

The trustees are satisfied with the results and activities of the charity for the year and do not anticipate any significant changes in the forthcoming year.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity's Commission's general guidance on public benefit when reviewing the charity's aims and objectives and planning future activities and setting the grant making policy for the year.

The charity was set up to support the activities of religious Jewish organisations especially in the field of education. The trustees identify institutions and organisations which meet its criteria and regularly support a number of these institutions and organisations, which themselves are growing not only in England but also worldwide.

The charity is also supportive of organisations which are solely committed to the relief of poverty. Such organisations assist needy Jewish families financially and also through the distribution of basic necessities.

The income of the charity is derived from investments and donations. The trustees continued their support of those organisations deemed to promote the objects of this charity.

Grantmaking

Grants are made at the discretion of the trustees and in accordance with the objectives of the charity.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity received donations totalling £80,646 (2019: £722,352) and made grants to various charitable institutions whose objective closely aligns to it's own totalling £58,742 (2019: £154,000).

Investment performance

The charity received rental income of £77,069 (2019: £46,504) from its investment properties.

FINANCIAL REVIEW

Principal funding sources

The charity is financially dependent on income from investment property and generous charitable donation.

Investment policy and objectives

The governing document of the charity, memorandum and article of association, authorizes the trustees to make and hold investments using the general funds of the charity.

Reserves policy

The reserves policy is to ensure that there is a sufficient stream of income to meet the ongoing calls made on the charity including the possibility of providing capital assets for the needs of charitable institutions.

Going concern

The trustees are confident that the charity will continue to operate for foreseeable future.

FUTURE PLANS

There are no current plans to change the activities or modus operandi in the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by it's governing document, it's memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act, 2006.

Recruitment and appointment of new trustees

It is not currently the intention of the trustees of the charity to appoint new trustees. Should this situation change in the future, the trustees will apply suitable recruitment and training procedures.

Related parties

The details of transactions and account balance with related parties are disclosed in the notes to the financial statements wherever necessary.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05544490 (England and Wales)

Registered Charity number

1115025

Registered office

71 Fairholt Road

London

N16 5EW

Trustees

A Matyas

J Posen

Company Secretary

Independent Examiner

Venitt and Greaves

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

Approved by order of the board of trustees on 11 December 2020 and signed on its behalf by:

J Posen - Trustee

Independent examiner's report to the trustees of SATMAR LIMITED ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 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 Charities Act 2011 ('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:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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

4.

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 (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

M A Venitt

A. C. A

Venitt and Greaves

Chartered Accountants

115 Craven Park Road

South Tottenham

London

N15 6BL

11 December 2020

31.8.20

31.8.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

80,646

-

80,646

722,352

Investment income

3

77,069

-

77,069

46,504

Total

157,715

-

157,715

768,856

EXPENDITURE ON

Raising funds

4

87,964

-

87,964

50,680

Charitable activities

5

General

58,742

-

58,742

154,000

Other

15,089

-

15,089

42,976

Total

161,795

-

161,795

247,656

NET INCOME/(EXPENDITURE)

(4,080

)

-

(4,080

)

521,200

RECONCILIATION OF FUNDS

Total funds brought forward

827,045

580,449

1,407,494

886,294

TOTAL FUNDS CARRIED FORWARD

822,965

580,449

1,403,414

1,407,494

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

31.8.20

31.8.19

Notes

£

£

FIXED ASSETS

Tangible assets

12

6,071

7,192

Investment property

13

2,824,662

2,824,662

2,830,733

2,831,854

CURRENT ASSETS

Debtors

14

-

2,530

Cash at bank

27,256

45,422

27,256

47,952

CREDITORS

Amounts falling due within one year

15

(261,617

)

(667,813

)

NET CURRENT ASSETS

(234,361

)

(619,861

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,596,372

2,211,993

CREDITORS

Amounts falling due after more than one year

16

(1,192,958

)

(804,499

)

NET ASSETS

1,403,414

1,407,494

FUNDS

19

Unrestricted funds

822,965

827,045

Restricted funds

580,449

580,449

TOTAL FUNDS

1,403,414

1,407,494

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.

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 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 11 December 2020 and were signed on its behalf by:

J Posen - Trustee

Cash flows from operating activities

Cash generated from operations

1

(368,937

)

518,540

Interest paid

(37,688

)

(8,793

)

Net cash (used in)/provided by operating activities

(406,625

)

509,747

Cash flows from investing activities

Purchase of investment property

-

(1,324,662

)

Net cash provided by/(used in) investing activities

-

(1,324,662

)

Cash flows from financing activities

New loans in year

388,459

804,499

Net cash provided by financing activities

388,459

804,499

Change in cash and cash equivalents in the reporting period

(18,166

)

(10,416

)

Cash and cash equivalents at the beginning of the reporting period

45,422

55,838

Cash and cash equivalents at the end of the reporting period

27,256

45,422

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.8.20

31.8.19

£

£

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities)

(4,080

)

521,200

Adjustments for:

Depreciation charges

1,121

1,344

Interest paid

37,688

8,793

Decrease/(increase) in debtors

2,530

(396

)

Decrease in creditors

(406,196

)

(12,401

)

Net cash (used in)/provided by operations

(368,937

)

518,540

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.9.19

Cash flow

At 31.8.20

£

£

£

Net cash

Cash at bank

45,422

(18,166

)

27,256

45,422

(18,166

)

27,256

Debt

Debts falling due after 1 year

(804,499

)

(388,459

)

(1,192,958

)

(804,499

)

(388,459

)

(1,192,958

)

Total

(759,077

)

(406,625

)

(1,165,702

)

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.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Governance costs

Governance costs are associated with the governance arrangements of the charity and relate to the general

running of the charity. These costs include independent examination, legal advice for Trustees and costs associated with meeting constitutional and statutory requirements such as the cost of Trustee meetings and the preparation of the statutory accounts.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

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.

2.	DONATIONS AND LEGACIES

31.8.20

31.8.19

£

£

Donations

48,150

696,383

Grants

3,237

-

Membership

29,259

25,969

80,646

722,352

Grants received, included in the above, are as follows:

31.8.20

31.8.19

£

£

Other grants

3,237

-

3.	INVESTMENT INCOME

31.8.20

31.8.19

£

£

Rents received

77,069

46,504

4.	RAISING FUNDS

Investment management costs

31.8.20

31.8.19

£

£

Management commission

4,631

2,790

Administrative expenses

1,771

615

Property repairs

39,874

34,482

Rent paid

4,000

4,000

Interest payable and similar charges

37,688

8,793

87,964

50,680

5.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

activities

Support

Direct

(see note

costs (see

Costs

6)

note 7)

Totals

£

£

£

£

General

35,559

10,335

12,848

58,742

6.	GRANTS PAYABLE

31.8.20

31.8.19

£

£

General

10,335

113,374

The total grants paid to institutions during the year was as follows:

31.8.20

31.8.19

£

£

Charitable

2,600

113,374

7.	SUPPORT COSTS

Governance

Management

Finance

Other

costs

Totals

£

£

£

£

£

Other resources expended

11,805

723

1,121

1,440

15,089

General

1,514

7,646

1,185

2,503

12,848

13,319

8,369

2,306

3,943

27,937

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.8.20

31.8.19

£

£

Depreciation - owned assets

1,121

1,344

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

10.	STAFF COSTS

31.8.20

31.8.19

£

£

Wages and salaries

11,805

16,661

11,805

16,661

The average monthly number of employees during the year was as follows:

31.8.20

31.8.19

Staff

2

3

No employees received emoluments in excess of £60,000.

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

722,352

-

722,352

Investment income

46,504

-

46,504

Total

768,856

-

768,856

EXPENDITURE ON

Raising funds

50,680

-

50,680

Charitable activities

General

154,000

-

154,000

Other

42,976

-

42,976

Total

247,656

-

247,656

NET INCOME

521,200

-

521,200

RECONCILIATION OF FUNDS

Total funds brought forward

305,845

580,449

886,294

TOTAL FUNDS CARRIED FORWARD

827,045

580,449

1,407,494

12.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 September 2019 and 31 August 2020

32,206

1,500

33,706

DEPRECIATION

At 1 September 2019

25,250

1,264

26,514

Charge for year

1,043

78

1,121

At 31 August 2020

26,293

1,342

27,635

NET BOOK VALUE

At 31 August 2020

5,913

158

6,071

At 31 August 2019

6,956

236

7,192

13.	INVESTMENT PROPERTY

£

FAIR VALUE

At 1 September 2019

and 31 August 2020

2,824,662

NET BOOK VALUE

At 31 August 2020

2,824,662

At 31 August 2019

2,824,662

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Trade debtors

-

2,134

Other debtors

-

396

-

2,530

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Other creditors

7,919

15,555

Loan creditors

246,438

646,438

Accrued expenses

7,260

5,820

261,617

667,813

16.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.20

31.8.19

£

£

Bank loans (see note 17)

1,192,958

804,499

17.

LOANS

An analysis of the maturity of loans is given below:

31.8.20

31.8.19

£

£

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans more 5 yr by instal

1,192,958

804,499

18.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

31.8.20

31.8.19

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

£

£

£

£

Fixed assets

6,071

-

6,071

7,192

Investments

2,244,213

580,449

2,824,662

2,824,662

Current assets

27,256

-

27,256

47,952

Current liabilities

(261,617

)

-

(261,617

)

(667,813

)

Long term liabilities

(1,192,958

)

-

(1,192,958

)

(804,499

)

822,965

580,449

1,403,414

1,407,494

19.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.19

in funds

31.8.20

£

£

£

Unrestricted funds

General fund

827,045

(4,080

)

822,965

Restricted funds

Fair value Reserve

580,449

-

580,449

TOTAL FUNDS

1,407,494

(4,080

)

1,403,414