PEEPUL_ENTERPRISES_LIMITE - Accounts

PEEPUL ENTERPRISES LIMITED - Company Information

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Company Registration No. 05178708 (England and Wales)

PEEPUL ENTERPRISES LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2013

PEEPUL ENTERPRISES LIMITED

COMPANY INFORMATION

Directors

Mr A K Bhanot

Mr P T Mathurin

(Appointed 19 April 2013)

Mrs L Choudary-Salter

(Appointed 25 September 2014)

Mr S Singh Syan

(Appointed 25 September 2014)

Secretary

Mr A K Bhanot

Company number

05178708

Registered office

Boardman House

64 Broadway

Stratford

London

E15 1NT

Auditors

Clear & Lane Limited

340 Melton Road

Leicester

LE4 7SL

Business address

Peepul Centre

Orchardson Avenue

Leicester

LE4 6DP

Bankers

Yorkshire Bank plc

29 Horsefair Street

Leicester

LE1 5BL

HSBC Bank plc

Grove Park

Penman Way

Enderby

Leicester

LE19 1SY

Solicitors

Harvey Ingram LLP

20 New Walk

Leicester

LE1 6TX

PEEPUL ENTERPRISES LIMITED

CONTENTS

Page

Directors' report

1 - 2

Independent auditors' report

3 - 4

Profit and loss account

Balance sheet

Notes to the financial statements

7 - 10

PEEPUL ENTERPRISES LIMITED

DIRECTORS' REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2013

The directors present their report and financial statements for the period ended 31 December 2013.

Principal activities

The principal activity of the company continued to be that of the operation of activities held at the Peepul Centre of which the freehold land and buildings are owned by the company's parent charity, Belgrave Baheno Peepul Centre, including arts events, childcare, fitness and leisure, catering and the provision of facilities.

Directors

The following directors have held office since 1 July 2012:

Mr A A Bhatia

(Resigned 5 December 2012)

Mr A K Bhanot

Mr A Maherali

(Resigned 5 December 2012)

Mr P T Mathurin

(Appointed 19 April 2013)

Mr K Sarda

(Appointed 5 December 2012 and resigned 25 September 2014)

Mrs L Choudary-Salter

(Appointed 25 September 2014)

Mr S Singh Syan

(Appointed 25 September 2014)

The directors have no personal or beneficial interests in the shares of the company and receive no remuneration, fees or other emoluments from or on behalf of the company. No director has been granted any share options.

Objectives and Aims

The main objectives of the company are to promote the objectives of the parent charity and in particular, to advance education and vocational training; protect health; relieve poverty, sickness and distress; relieving unemployment; and provide recreation and leisure facilities in the interest of social welfare.

Significant Activities

The Peepul Centre officially opened on 27 October 2005. Activities carried out since then include arts events, childcare, fitness and leisure, catering and provision of facilities.

Financial Review

The operating loss for the 18 month period amounted to £505,216 (15 Months to 30 June 2012 profit - £157,203. No management charge was received from the parent charity Belgrave Baheno Peepul Centre in the period to 31 December 2013 (15 months to 30 June 2012 - £650,000). Operating losses before management income remained high in the first 6 months to 31 December 2012 but the trend during 2013 has been of reducing operating losses which has continued in 2014. The Directors estimate it will take another 12 months to increase income sufficiently to reach a break-even point.

These accounts also show expenses charged of approximately £90k recharged from the parent company, the Ethnic Minority Foundation, a part of which may be subject to the Ethnic Minority's Foundation counter-claim in a litigation case with a former employee.

Future Development

The company is continuing to seek additional capital and revenue funding to continue to finance the Peepul Centre so that it can continue its full range of activities.

Control of the company's parent undertaking, the Belgrave Baheno Peepul Centre (a registered charity), transferred to the Ethnic Minority foundation (a registered charity) on 18 May 2012.

The company's balance sheet is insolvent but the directors consider that the support of the ultimate parent undertaking the Ethnic Minority Foundation will ensure that the company can continue to trade as a going concern.

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PEEPUL ENTERPRISES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2013

Auditors

Clear & Lane Limited were appointed auditors to the company in accordance with section 485 of the Companies Act 2006, a resolution covering appointment of auditors will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board

Mr A K Bhanot

Director

28 October 2014

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PEEPUL ENTERPRISES LIMITED

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF PEEPUL ENTERPRISES LIMITED

We have audited the financial statements of Peepul Enterprises Limited for the period ended 31 December 2013 set out on pages 5 to 10. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Directors' Responsibilities Statement set out on pages 1 - 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm.

Basis for qualified opinion on financial statements:

With respect to expenditure of £95,504 the audit evidence available to us was limited as we were unable to verify the nature of the expenditure that related to recharged costs from the Ethnic Minority Foundation (EMF) the ultimate charity holding company. These expenses are the subject of a current legal case with a former employee of EMF.

Qualified opinion on financial statements

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In our opinion, except for the possible effects described in the Basis for Qualified Opinion paragraph, the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2013 and of its loss for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Emphasis of matter - going concern

In forming our opinion on the financial statements, which is not modified in this respect, we have considered the adequacy of the disclosure made in note 1.1 to the financial statements concerning the company's ability to continue as a going concern. The company experienced a net loss for the 18 month period to 31 December 2013 of £505,216 and as at 31 December 2013 the company had net liabilities of £629,699 and so was technically insolvent and reliant on the support of its charitable holding company, Belgrave Baheno Peepul Centre (BBPC) and its ultimate holding company the Ethnic Minority Foundation (EMF). The continuation of this support is dependent on any potential limitations within charity law on the continued support of the company, which is a trading subsidiary, and the ability of the Ethnic Minority Foundation to provide further working capital. These conditions, along with the other matters explained in note 1.1 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements.

PEEPUL ENTERPRISES LIMITED

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF PEEPUL ENTERPRISES LIMITED

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to the expenditure, described above:

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

we were unable to determine whether adequate accounting records had been maintained.

returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

Luke Turner ACA FCCA (Senior Statutory Auditor)

for and on behalf of Clear & Lane Limited

Chartered Accountants

Statutory Auditor

340 Melton Road

Leicester

LE4 7SL

29 October 2014

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PEEPUL ENTERPRISES LIMITED

PROFIT AND LOSS ACCOUNT

FOR THE PERIOD ENDED 31 DECEMBER 2013

18 Months

15 Months

ended

31 December

30 June

2013

2012

Notes

Turnover

1,711,924

1,532,007

Cost of sales

(203,746)

(143,703)

Gross profit

1,508,178

1,388,304

Administrative expenses

(2,013,394)

(1,877,198)

Other operating income

650,000

Operating (loss)/profit

(505,216)

161,106

Interest payable and similar charges

(3,903)

(Loss)/profit on ordinary activities before taxation

(505,216)

157,203

Tax on (loss)/profit on ordinary activities

(Loss)/profit for the period

(505,216)

157,203

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PEEPUL ENTERPRISES LIMITED

BALANCE SHEET

AS AT

31 DECEMBER 2013

2013

2012

Notes

Current assets

Stocks

2,161

6,343

Debtors

75,762

169,255

Cash at bank and in hand

22,999

9,063

100,922

184,661

Creditors: amounts falling due within one year

(730,621)

(309,144)

Total assets less current liabilities

(629,699)

(124,483)

Capital and reserves

Called up share capital

Profit and loss account

(629,700)

(124,484)

Shareholders' funds

(629,699)

(124,483)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and the Financial Reporting Standard for Smaller Entities (effective April 2008).

Approved by the Board for issue on 28 October 2014

Mr A K Bhanot

Director

Company Registration No. 05178708

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PEEPUL ENTERPRISES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2013

Accounting policies

1.1

Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements are prepared on a going concern basis which assumes that the company will continue in operational existence for the forseeable future.

The company has the financial support of the ultimate parent company, Ethnic Minority Foundation (EMF). EMF have agreed to provide this support for at least 12 months from the date of signature of the financial statements. The financial statements do not include any adjustments that would result if the ultimate parent company's support was withdrawn or if EMF was unable to continue to provide support. The directors firmly believe that it is appropriate for the financial statements to be prepared on the going concern basis.

1.2

Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).

1.3

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

1.4

Leasing

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Other operating income

Other operating income consists of management charges received see note 11.

Operating (loss)/profit

2013

2012

Operating (loss)/profit is stated after charging:

Operating lease rentals

- Plant and machinery

22,489

10,586

Auditors' remuneration

5,687

12,410

Taxation

The company has estimated losses of £ 575,165 (2012 - £ 78,343) available for carry forward against future trading profits.

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PEEPUL ENTERPRISES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2013

Debtors

2013

2012

Trade debtors

39,270

34,949

Amounts owed by parent charity - Belgrave Baheno Peepul Centre

78,863

Accrued income

16,809

Other debtors

31,008

4,500

Prepayments and accrued income

5,484

34,134

75,762

169,255

Creditors: amounts falling due within one year

2013

2012

Trade creditors

205,097

88,587

Amounts owed to immediate parent charity (BBPC) and ultimate parent charity (EMF)

335,413

8,174

Taxes and social security costs

170,167

52,594

Directors' current accounts

500

Other creditors

239

68,094

Accruals and deferred income

19,205

91,695

730,621

309,144

Share capital

2013

2012

Allotted, called up and fully paid

1 Ordinary shares of £1 each

Statement of movements on profit and loss account

Profit
and loss
account

Balance at 1 July 2012

(124,484)

Loss for the period

(505,216)

Balance at 31 December 2013

(629,700)

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PEEPUL ENTERPRISES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2013

Financial commitments

At 31 December 2013 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 December 2014:

2013

2012

Operating leases which expire:

Within one year

666

Between two and five years

12,585

666

The ultimate parent and parent undertaking

The ultimate parent company, Ethnic Minority Foundation, is a charity, a company limited by guarantee and registered in England and Wales.

Ethnic Miniority Foundation prepares group financial statements and copies can be obtained from the registered office.

The parent company, Belgrave Baheno Peepul Centre is a charity, a company limited by guarantee, and registered in England and Wales.

Related party relationships and transactions

Advances and credits to directors

% Rate

Opening Balance

Amounts Advanced

Interest Charged

Amounts Repaid

Closing Balance

K Sarda - loan account

2,500

(3,000)

(500)

2,500

(3,000)

(500)

During the year Mr K Sarda, a director of the company, loaned the company £3,000, at 31 December 2013 there was a balance owing to Mr K Sarda of £500. The loan is interest free and repayable on demand.

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PEEPUL ENTERPRISES LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2013

Related party relationships and transactions

(Continued)

Other transactions

At 31 December 2013 the company owed the parent company, Belgrave Baheno Peepul Centre, £300,483 (30 June 2012: debtor £78,863).

Also at 31 December 2013 an amount is due to the ultimate parent company, Ethnic Minority Foundation of £34,930 (30 June 2012: £8,174). During the period management charges were paid to Ethnic Minority Foundation amounting to £185,520 (30 June 2012: £nil).

During the period no management charges were received from the parent charity, Belgrave Baheno Peepul Centre. In the 15 month period to 30 June 2012 £650,000 was received.

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