Charity registration number 1139316
Company registration number 07428770 (England and Wales)
THE TMC TRUST LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
THE TMC TRUST LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Samuel Grosz
Daniel Ost
Teresa Ost
Charity number
1139316
Company number
07428770
Registered office
c/o 75 Maygrove Road
West Hampstead
London
NW6 2EG
NW6 2EG
Independent examiner
Goldwins Limited
75 Maygrove Road
West Hampstead
London
NW6 2EG
THE TMC TRUST LIMITED
CONTENTS
Page
Trustees' report
1 - 2
Independent examiner's report
3
Statement of financial activities
4
Balance sheet
5
Notes to the financial statements
6 - 12
THE TMC TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 1 -

The trustees present their annual report and financial statements for the year ended 30 November 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and Articles of Association, the Companies Act 2006 and "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

 

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. The trustees believe that the charity achieves a public benefit by providing these services as detailed earlier in this report.

Achievements and performance
Significant activities and achievements against objectives

 

The Charity has been raising funds in the form of donations and loans to assist with the building of the ‘Beis Hamedresh Kehal Chasidim’ synagogue at 213 Golders Green Road, London NW11.

 

During the year The Charity paid donations of £99,000 (2021: £79,000) to other charitable organisations for advancement of education and other charitable objectives.

 

 

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The current level of free reserves, being the unrestricted funds not committed or invested in tangible fixed assets, is £467,991 (2021: £362,373). Having regard to the future development of the building, the Directors have set a target level of free reserves which equates to approximately 6 months of expenditure. This will enable the Charity to continue its current activities and allow it to respond quickly in the event of an emergency. They intend to continue their fundraising efforts with a view to achieving the target level. The reserves policy is reviewed annually.

 

 

Structure, governance and management

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Samuel Grosz
Daniel Ost
Teresa Ost

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

THE TMC TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 2 -

The trustees, who are also the directors of The TMC Trust Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

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

The trustees' report was approved by the Board of Trustees.

Samuel Grosz
Trustee
29 November 2023
THE TMC TRUST LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE TMC TRUST LIMITED
- 3 -

I report to the trustees on my examination of the financial statements of The TMC Trust Limited (the charity) for the year ended 30 November 2022.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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 that in any material respect:

1

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

2

the financial statements do not accord with those records; or

3

the financial statements 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 financial statements 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 financial statements to be reached.

Stephen Goodwin FCA CTA
Goldwins Limited
Chartered Accountants
75 Maygrove Road
West Hampstead
London
NW6 2EG
Dated: 29 November 2023
THE TMC TRUST LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 4 -
Unrestricted
Unrestricted
funds
funds
2022
2021
Notes
£
£
Income from:
Donations and legacies
3
93,036
10,800
Investments
4
225,790
221,604
Total income
318,826
232,404
Charitable activities
5
213,208
204,339
Net income and movement in funds
105,618
28,065
Reconciliation of funds:
Fund balances at 1 December 2021
2,154,263
2,126,198
Fund balances at 30 November 2022
2,259,881
2,154,263

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE TMC TRUST LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2022
30 November 2022
- 5 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
68,155
90,874
Investment property
12
6,375,000
6,375,000
6,443,155
6,465,874
Current assets
Cash at bank and in hand
3,016
4,000
Creditors: amounts falling due within one year
14
167,444
152,090
Net current liabilities
(164,428)
(148,090)
Total assets less current liabilities
6,278,727
6,317,784
Creditors: amounts falling due after more than one year
15
(4,018,846)
(4,163,521)
Net assets
2,259,881
2,154,263
The funds of the charity
Unrestricted funds - general
467,991
362,373
Unrestricted funds - Revaluation reserve
1,791,890
1,791,890
2,259,881
2,154,263

The notes on pages 6 to 12 form part of these financial statements.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 November 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 29 November 2023
Samuel Grosz
Trustee
Company registration number 07428770 (England and Wales)
THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 6 -
1
Accounting policies
Charity information

The TMC Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is c/o 75 Maygrove Road, West Hampstead, London, NW6 2EG. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 7 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 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 activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Donations and gifts
93,036
10,800
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Rental income
225,777
221,602
Interest receivable
13
2
225,790
221,604
THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 9 -
5
Expenditure on charitable activities
Charitable activities
Charitable activities
2022
2021
£
£
Direct costs

Donations to institutions

99,000
79,000

Legal and professional fees

1,000
18,452
100,000
97,452
Share of support and governance costs (see note 6)
Support
111,714
102,087
Governance
1,494
4,800
213,208
204,339
Analysis by fund
Unrestricted funds - general
213,208
204,339
6
Support costs allocated to activities
2022
2021
£
£
Depreciation
22,719
30,292
Advertisement
150
576
Bank Charges
845
562
Loan interest
62,931
50,828
Commission
8,954
7,635
Insurance
3,980
3,605
Repairs and mainenance
12,135
12,419
-
(3,830)
Governance costs
1,494
4,800
113,208
106,887
Analysed between:
Charitable activities
113,208
106,887
7
Net movement in funds
2022
2021
£
£
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
22,719
30,292
Interest payable
62,931
50,828
Independent examination fees
1,494
4,800
THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 10 -
8
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9
Employees

The average monthly number of employees during the year was:

2022
2021
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
10
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 December 2021
307,055
At 30 November 2022
307,055
Depreciation and impairment
At 1 December 2021
216,181
Depreciation charged in the year
22,719
At 30 November 2022
238,900
Carrying amount
At 30 November 2022
68,155
At 30 November 2021
90,874

All of the above assets are used for charitable purposes.

12
Investment property
2022
£
Fair value
At 1 December 2021 and 30 November 2022
6,375,000

Investment properties valuations were reviewed by the Trustees during the year after reviewing the present condition of the properties and values of similar properties in the surrounding area.

THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
- 11 -
13
Loans and overdrafts
2022
2021
£
£
Bank loans
1,596,275
1,657,954
Payable within one year
145,330
124,320
Payable after one year
1,450,945
1,533,634

Bank loans are secured against the Charity's properties 213-215 Golders Green Road London NW11 9BY.

 

14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
13
145,330
124,320
Other creditors
11,080
12,230
Accruals and deferred income
11,034
15,540
167,444
152,090
15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans
13
1,450,945
1,533,634
Other creditors
2,567,901
2,629,887
4,018,846
4,163,521
16
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 December 2021
Incoming resources
Resources expended
At 30 November 2022
£
£
£
£
Revaluation reserves
1,791,890
-
-
1,791,890
General funds
362,373
318,826
(213,208)
467,991
2,154,263
318,826
(213,208)
2,259,881
THE TMC TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2022
16
Unrestricted funds
(Continued)
- 12 -
Previous year:
At 1 December 2020
Incoming resources
Resources expended
At 30 November 2021
£
£
£
£
Revaluation reserves
1,791,890
-
-
1,791,890
General funds
334,308
232,404
(204,339)
362,373
2,126,198
232,404
(204,339)
2,154,263
17
Related party transactions
As at the year end, the charity owed the following trustees:
2022
2021
£
£
Samuel Grosz
241,537
272,403
Daniel Ost
219,480
219,480
The charity also owed to the following companies in which one or more trustees or their family members are company direcrtors:
2022
2021
£
£
Woodland Green Limited
1,445,729
1,435,329
Power Estates Limited
499
31,800
Eginaville Limited
257,674
257,674
Edan Properties Limited
128,000
128,000
Evering Estates Limited
-
20,920
Finebrick Limited
5,750
5,750
STO Properties Limited
134,000
134,000
Golden Manor Estates Limited
10,641
10,641
MP Lane Limited
3,290
3,290
HMB Trading Limited
15,000
15,000
SGR1 Limited
10,701
-
Skenshire Limited
95,600
95,600
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