REGISTERED CHARITY LYUMBER.. 1050410 Trustees, Report and Audited Financlal Statements for the Year Ended 31st December 2022 for Human Welfare IntLrnational Charitable I rust S SyedAin & Co Charted Accouniants & Stststory Audiiors First Floor 87 Kenton Road Harrow Middlesex HA3 OAH
Human Welfare International Charitable Trust Contents of tbe Financial Statements for the Year Ended 31st December 2022 Pag¢ Trustees, Report Statement of Trustees, Responsibilities Report of the Independent Auditors 9 to 11 Statement of FinAncial Activities 12 Statement of Financial P051tion 13 to 14 Statement of Cash Flows 15 Note5 to the Statement of Cash Trlows 16 Notes to the Finantial Statement$ 17 to 28 Detailed Statement of Flnancial A¢tivitie$ 29 10 30
Human Welfare International Charitable Trust Trustees, Report for the Year Ended 31sl D¢cembeT 2022 The trustees present their report with the financial statements of the charity for the year ended 31st L)e¢ember 2022. The trustees have adopted the provision5 of A¢¢ounting aiid Reporting by Chariti¢s'. Stat¢ment of Recommended Practice applicable to Lharities preparing their accounts in aL'cordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019). OIUF.CTIVF.S AND ACTIVITIES Objectives and Aim The primary obj¢cl of the Trust is to relieve poverty and sickT]ess in India and elscwhere, particularly by providing funds, support aiid assislancc to buildiii¥ and ongoing support for the Nnning of lh¢ GUN Ainardas c.haritable Hospital and Institute of Medical Sciences in Ludhiana, Punjab, India and any other charitable hospitsls or institutions as it may from time to time be selected by the Irust¢cs. Furth¢r objectives are to advance education in India and the UK, paiticularly by the establishment of a school in India and the provision of Llasses in the UK. To assisl pcrsuns, both spiritually and financially whcrc ncccssary* who in hardship or distress as a result of their social, doincstiL or economic cirLumslances. SigwnifJ¢8nt a¢tivitie$ The trust's income is mainly derived fi'om donations made by members of lh¢ congregation who attend the Gurdwarlls, operdted by the TIw,8t in Soutliall and L¢icesler. A free kitL.lien is pait of the service provided every day and vegetsrian food is available twenty-four hours a day, every day of the w¢¢k, lo m¢mbers of the public. We provide cultural and regular public s¢rvices, blessings and ceremonies al both the Gurdwaras,. The daily religious services in the Gurdwaras, are the core activities in furtherance of the Trust's obiccls and it will continue lo altracl more of the local cotnmunity to attend the Gurdwaras, and lo ¢ncouragc Imore fuiidraising aciivities froin the local communities to assist in achicving its objectives. The Trust relies on donations from the community 10 cover its operating costs, loan Tepayments and to fulfil ils objectives. Publi¢ benefit In shapiiig our objectives for the year and plannin8 our activities, the truslees have consid¢red the Charity Commission's guidanc¢ on public benefit, including the guidan¢e 'Public benefit: running a charity (PB2). It is the tnjstee's opinion that the operation of the Trust in its present form is for the public bcncfit undcr thc prinLiples set out in the Charity Coinmission guidance. Page I
Human Welfare International Charitable Trust Trustees, Report for the Year Ended 31st December 2022 ACIIIEI VE)qENT AND PERORmANcE Charltable aclivitl In the financial year of 2022, apart froin the above mentioned objectives and in support of the abov¢ achieveinents, the following activities and events were undertaken by the Trust as Imcntioned below. Donation income has inLredsed significantly since last year by 210/0, however since Covid lockdowns the ¢ongregation level was still not up to the same capacity as the pre-covid level. This is mostly due to the impact of Covid and th¢ ¢lderly people more relLlCtant to travcl to public places. Also due to the economic environment people are donating less than they used to in the past. As usual, 14 days Simrdn-Jaap events were hostsd in Southall in April 2022 for Vaisakhi programme, and in November 2022 for Guru Nanak Dev Ji's Gurpurab. Althou lh¢ abov¢ programmes were broadca8led on Loom and worshippers forn) all over the country could join and il was very succc5sful. In falt, we have no hesitaiion of saying this that numi)er of (iurdwara's havc taken inspiration from us and started a similar typ¢ of programme8 in their respeciive Gurdwaras. We can SAY that otlier Gurdwai?s have been inspired by our programme and their Gurdwaras have started a similar meditation programme, which is normally hosted by young children. which is vcry important for us. W¢ have stalled giving l¢ads and cunlr()I to tlie young g¢n¢rations &nd they now look forward to host these progi?mines and similar programme5. 11 is givin8 inspirations to other youngsiers as well, which is quite satisfying to the trustees and the trust. We have also noticed that number of homeless and poor people have started coming Éo our Temple for frec food etc. Although they are not Sikhs, it gives us immense pleasure to serve them hot food and also to givc thcm some grocery, what¢ver we can fi'om the kil¢li¢n. It givcs us tolal saiisfaciion to do this as this is what is requir¢d from us to feed the hun8ry and liclp thc nccdy. We sin¢erely believe that it has become lot more Common in recent months due to the recession, reduction in the benefits and welfare funds. By doing this. th¢ Trust is helping ihe local commiinity and the society. Page 2
Human Welfare International Charitable Trust Trustees, Report for the Year Ended 31st DeMber 2022 FINLNCIAL REVIEW FiDaneial position Th¢ priniary funding source is donations from both the Gurdwara congregations. The funds from this source are used to provide the congregation with well-maintained Gurdwdras, in Southall and Leicester and other resources in order to achieve th¢ objectives of the charity. Donation income has increased significantly since last year. howev¢r since covid lockdowns the Congregation level was still not up to the same c&pa¢ity as the prerycovid level. Donation income has increased by 21 O/ts during the year to £552.102 (2021: £454,492) which was a result of both the Gurdwaras, reopening again after the ¢uvid lo¢kdown period and the Trust r¢sumiiig its normal activities. However, the tolal resources ¢xp¢nded had decreased to £435.691 (2021,. £930,363). Last year's expenses welt unusually high due to higher repair and mainn271ce costs as a result of ihe GAD Hall fire and the iinpairment to thc GAD hall propety as a result of the fire. I,urthem10re there was a150 a charilable donatioii mad¢ to the Baba Jaswant Singh Trust in Ludhiana. Iiidia, last year towards the building of ihe Sri Guru Amardass Charitable I lospilal. Excludiny these costs from last year expenses total cxpcnscs have actually increased by 33% since last ycar which is du¥ to the overall increase in prices on ¢on5umable items. On 15 July 2021. the Guru Amardass Hall was completely destroyed as a resuli of a massive fire. whi¢h was caused by ali LlectriLal short circuit. I,'ortiinatcly, no personal lives wcrc105t but th¢ hall was completely destroyed. A Cash settlement was negotiated with the insurance company which was agreed at 800/0 of value at risk. The final setilement received was £1,127,256 which was aftcr initial costs, and tliig was received in August 2023. Work 10 restore the hall commenced shortly after the s¢ttlcincnt was received and it is anticipated that the hall will bc compleled during the end of 2024 wlien we hope that we can start to use the hall agaiii for our rcligious functions. The charity has been able to Inaintain its net assets above the minimum amount as part of the ondition of both loans. Rental income from the Trust's investment properties has incrcascd this year as all the properties We refurbished and llll rented out. Last year a couple of the properties were vacant for a few months. The rentsl income has increased back io expecied levels which will assist in the repayment of out bank loans. Page 3
Human Welfare International Cbaritable Trust Trustees, Report for the Year End¢d 31st December 2022 FINANCIAL REVIEW Reserves poliey The Trust relies on donations and offerings from ils members and the trustees have now taken I aclive role in ensuring ihal some of iheir properties are rented out to ensure a regular rental income. It is recognised that donations can fluctuale from year on year. The Trustees aim to ensure thai the Tnsst has sU1¢ient resources to ¢ontinuc its activities and to Ineet its obligations, especially towards its baiik loan repayinents. As a result. th¢ trustees have reviewed the Truses re5erv¢s policy and it was decided ihat the Trusl would try to keep at least l OTr/o, as per last year. of the total monies borrowed by the Trust in its bank account. The Trust had total funds of £2,894.845 (2021.. £2,666,690) which are unrestricted and available for the gei)¢i'al purposes of the Trust. It is felt thaL at thi5 level, it would bc possible to contiiiue the Quent activities of the Trust in the evei)l of a significant drop i)) donations, This would then givc sutricicnt lime to consider how the funding would be repla¢ed or the activities changed. FUTUiiE PLANS We believe ihal by bringing extra congregation and young generation, we may not be increasing the lurnovcr in Ilie short tciin of limc, bul it should provc vciy fruitfiil for ev¢ryone in the long term in terms of not only financial gains but spiritiial goals and also fullilling our responsibilities towards th¢ community at large and also to the country. where we live in. We believe that our Centres are providing more help to the local ¢omrnunity now than in the past, as r explanations with regards to a lot more programmes for youngsters, a lot more needy people coming to the cetltre for f]d and other help etc. The Trust has njn another successful year, especially taking into uccount the general economic environment and we really do not see any failures and do not foresee any major issiies or problems 8P8rt frorn encouraging more volunteers and youngstcrs to give thcir valuable time and if we can provide the congreb>aliun, society a valuable service, then perhaps we would havc satisfaction in ternis ofspirilual goals elc. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its goveming document. a deed of trust and con5titute5 an unincory)orated charity. Charity constitution The trust was set up by deed dated 30th October 1995 and supplementary deeds dated Ioih March 1998, 26th June 2006, 31 st January 2008 and 17th June 2009. Appointment of trustees Th¢ trustees are responsible for the adrninistrdtion and investment policy of the Charity. Trustees are aPFK)inted aiid removed by the board of tNstees after deliberation with the Chaimian. Induction training is given 10 the truste¢s on appointment. Trustees are enCOuged to attend courses to keep thems¢lv¢s acquainted with the duties and responsibilities of the trustees. Page 4
Human Welfare International Charitable Trust Trustees, R¢port for the Year Ended 31st December 2022 STRUCTURE, GOVERJYATrICE AIYD MANAGEMENT Organisational structure A board of tiustees (the "Board"), which meets regularly throughout the y¢ar, administers the charity. Thc ChairmAn of th¢ trust is rcsponsiblc for setting the general strntegy and direction of the trust, whereas the administrntion and operational responsibilities pertaining to the Irust fall to the board. Thc truste¢s in th¢ UK manage thc day lo day manAgement of the Trusi and all Inanagement decisions are made by them as there are not any employed key management rsonnel with th¢ Trust. The tru5te¢5 who served during the year were: Anhad Raj Singh - Chaimian Amarjit Singh Daljii Siilgh SaggLI Surinder Singh Jagdev Gurvindci. Pal Singh Kohli Volunteers Maiiy voluntccr8 give LIP thcir fime to help with day-to-day tasks at the Sikh temples (Gurdwaras) operated by ihe Trusl, partiLuldrly at weekend% and in the cvcniiigs. Thc trustcc% are grcutly indebted to these volunteers for their contribution, commitment and support. Related partie5 The Chairmun Mr Anhad Raj Singh is also the chairman of Guru Amardass Charitabl¢ Hospital and Institute of Medical Sciences in Ludhiana, Punjab, India where the Trust donates part of its donations as pcr its dccds on an ad-hoc basis. As are result of the GAD Hall fire a coinpany called Juxtaposition Limited was ¢ngaged for th¢ installation of the scaffolding and temporary tin roof, in addition to some clearance work. Mr Surinder Jagdev, one of the Trustees, is a150 a director of Juxtap)sition Limited. Page 5
Human Welfare International Charitable Trust Trust¢es' Report for the Year Ended 31st December 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk n)anagement The trnstees recognis¢ that the real estate assets of the Trus¢. and the ¢apilal sums borrowed against these assets, expose the trust to risks in tem)s of meeting its repayment obligations and in terrns of any struLtur&l or emergency remedial work that might nc¢d to be Caled oiit to the real cstate assels. Furtherinore, there is a risk of incurring financial penalties and risk of legal action if the assets al'e not adininister¢d in a timely and proper manner. Thc trustees a150 recognise that donations can fluctuate each year which is widcly depcndanl on the economic climate. They also re¢ognise that it is becoming much more dil¢U1t to find suitable priests and people to read the I loly Book du¢ to more ¢ontiDI on th¢ immigration policy of the government. The trustees have laken the followiiig inco$urcs to mitigatc thcsc risks: Introducing prograimmes foi. young generdtions and trying to make food which is preferred by them. They are trying to give responsibility to tIK yOLingcr Imcmbcrs of thc congrcgialion to gct thcin more involved and lo ensure Ih<il they ¢&in artraci further interest from th¢ yuung7er g¢n¢rdlion. The pmgrammes are bein8 taught in English to endble more people to attend and to gain further knowledge of the Sikhism religion. We do think that by doing these a¢iivities, we would be spending more resources bul would be doing a girat job for the youngsters, their parents and mainly for the Community at large as onc¢ they start coming lo the Giirdwara, slart taking part in religious aclivilies, would ensLire ihal they will nut be indulgiiig in other anti-social activilies ei¢. Secondly, we would be pparIng a generalion, who would be taking over the charity to take further when we are not in thi8 world. We do noi foresee any problcin with the rcpayment of Ihc bank loan as tlic InteSt rate for tlie initial loan 15 fixed al a low rate and Ilie Trust has n¢vei' defaulted on Ihe loan repayinenls. The triistees have siarted exploring the possibilities to apply for a licence from the home office which will help the Trust to employ Priests and religious workers according to the standard set up by Sikh Etlios and Sikh Religion. The tnlstees also recognise thal il is becoming & lol more dIlcult to find a suitable priesl, religious workei's Holy Book readers etc due to a lot more control on the immigration policy of the Govcrnmcnt. Property values have also gone up during the period, which makes our loan-to-value ratio more favourable to the Trust. The Tiust also acknowl¢dg¢s that we still have a very big site in L¢icester. two residential units in Leicester, and four residential units in Souihall, which have no loan or mortgage on them. Page 6
Human Wejfare Intsrnatlonlll Charitablo Trust Trnstees, Report for the Year Ended 31stDecenJber 2022 REFERENCE AIYD ADMINISTRATIVE DETAILS ReglgterÈd Charity numbcr 1050410 PrfndpAI 8ddre51 IA-3 Clifton Rolld Sout]Mll MiddI¢sex UB2 5QP Trustees Mr D S Sag8u Mr A Sinuh Mr S S Jagdev MrGPSKholi MrA R Sin8h Audltors S Syedain & Co Chartered Accountstts & Statutory Auditor7 First Floor 87 Kenton Road Middle8ex HA3 OAH Bankcrs Lloyds Bank PIC Uxknidg¢ BinniDgbam OCS4 Ariel House, 2138 Coventty Road Sheldon B26 3JW EVENTS SINCE THEEND OFTHE YEAR Infonnation r¢latsng lo events Si¢ the end of the ye4r 18 given in the rjotes to the financial 8talement$. Approved by olller of the board of trnstee5 on ..?o.. .......,. by: and signed on its behalf MrD SSaggu-T Page 7
Human Welfare International Charitsble Trust Statement of Trustees, Responsibilities for the Year Ended 31st December 2022 The Irustees are responsible for preparing the Tru5tees' R¢port and the financial ststements in accordanee with appliLdble law and United Kingdom Accounting Standards (United Kingdoin Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "Th¢ Financial Reporting Standard applicable in the UK and Republic of Iland, The law appli¢able to Charities in England and W81¢s. the Charities Act 2011, Charity (Ac¢ounts and Reports) Regulaiions 2008 and the provisions of the trust deed requires the trustees to prepa financial statements for each financial year which give a true and fair view of the stdte uf dlTairs of the charity and of the incorning resources and application of resources, including the income and expeiiditure. of the cliarily for that period. In pKpariiig lhose financial statements, the trustccs arc required to selecl Suitable aecounling policies and then apply Ihcm consistently; observe the meihods aiid principles in Ihe Charity SORP. mak¢ judgem¢nts and estimates ihal are I'easonable and prudcn¢' state whether applicable accounting standards have been followed. subject to any material dcparturcs discloscd and explaincd in thc financial ststemenls. preparc the finaii¢ial siatcinciiis on the goiiig conceni basis unless it is inappropriate to presume that the charity will continue in business. Thc trustCC8 are rcsponsiblc for kceping proper accounting records which disclose with reasonable ac£urAcy at Any time the financial pr)gition i)f the Lharily and lo eiiablc ihcin to cnsurc ihat the fiiianLiuI slulemenls comply wilh the Lharities Act 2011, the Charity (Accounts and Reports) RegulaliL)ns 2008 and the provisions of the trusi deed. 1.hey Are also re.8pun8ible for safeguarding tli¢ assets of Ihe charily and hence for taking reasonabSe steps for the pi'eveiition und deleclioii or frdud and other irreguldrilies. Page 8
Report of the Independent Auditon to the Trustees of Human Welfare International Charitable Trust Opinion We have audited the financial stateiments of Human Welfare Intemational Charitable Trust (the 'charity') for ihe year ended 31st December 2022 whicli comprise the Statement of Financial Activitics, thc Statcmcnt of Financial Positiun, the Siateinent of Cash Flows and notes to the financial stateinenls. including a summary of significant accounting policies. The financial reporting frainework that has been applied in their preparntion is applicable law and United Kingdom Accounting Standards (United Kingdom Cjenerally A¢cept¢d Accounting Practice), inbluding Financial Reporting Stsnd&iYl 102 'The Financial Repoiting Standard appli¢able in the UK and Republic of Ireland,. In our opinion the fiiiancial stateinents: give a true and fair view of th¢ stdte of the ¢harity's affaits as at 3 1st December 2022 and of its incoming r¢sourccs and application of resources, for the year then ended. have been properly prepared in accordance with United Kiiigdoim Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Stsndard applicabl¢ in thc UK lind Republic of Ireland,; and havc bccn pr¥Paa in a¢cordaiice wilh ihe r¢quii'enients of the Charities Act 201 Basiy for opinion We conducted our audit in accordance with Inlcrnational Standards on Auditing (UK) (ISAS (UK)) and applicablc law. Our rcsponsibilitics under thvse slandards are further desci'ib¢d in the Auditors, responsibilities for the audit of the fin&ncial statements seclion of our report. We are independent of Ili¢ charity in accordancc with the ethical requirements Il)at arc rclcvmni lo our audit of the findncial slatein¢nts iii th¢ UK, including? thc FRC'S r.thiLal Stsndard. and wc have fuifillcd oiir othcr ethical rcspoiisibilitic% in dGcordaii¢¢ with these requirein¢nts. Wc helieve thai the audit evidence we havc obtained is suffi¢ienl and appropriate lo provide a basis for our opinion. Conelusions relating to %0SnE ¢on¢ern In auditing thc finaiicial ststements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial s*t¢m¢nts is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to ev¢i)ts or ¢onditions tl)al, individually or collectively, may cast 8ignificant doubt on the charity's ability to continue as a going concem for a period of at l¢ast twelve months from when the fiiian¢i&l slalem¢nts ar¢ auihorised for issue. Our rcsponsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections ofthis report. Page 9
Report of the Independent Auditors to the Trustees of Human Welfare lj)t¢rnation81 Charitable Trust Other Information The trust¢¢s ar¢ responsibl¢ for the other inforniation. The other inforniation coinprises the infomiation included in the Annual Repo¢ other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the finan¢ial statements does not cover tlie other infomiation and, except to the extent othetwise explicitly stated in our report, we do noi cxpr¢ss any fonn of assurance conclusion thereon. In connection with our audit of the financial stalemenls, our responsibility is to read the other infomation and, in doing so, consider whether the other information is maleridlly inconsisient with the financial slatements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we ideiitify such material inconsiskn¢ies or appai'ent material misstatements. we are required to detei'mine whether this gives rise to a Inaterial misstatement in the financial stateinenls theniselves. If, based on tl)e work we have performed, wc conclud¢ that there is a Inatei'ial misslalement of this other information. we are required to report that fact. We have nothing to report in this regard. Matters on whi¢h Ive are requÉred to report by exception We have nothing to report in respect of the following mattets where the Charities (Accounts and Rcports) Rcgiulalions 201)8 1'eqLiifcs u8 lo rcport to you if. in our opinion: the infomiation givcn in the trustee5 Rcport is in¢onsisi¢nt in any material respect with the finartcial stateinents. or sufficient acLounling records have not been kepl; or the finaiiLial siaiements are nol in agreement with Ihc a¢¢ountinbY records and relunis. or we have nut reLeived all the infonnaiion and explanaiions we require for our audil. Responqlbilitie$ tsf tru8teoq As explai11cd morc fully in Ihc Statcmcnt of Truslees, Responsibilities, the trust¢es are r¢sponsible for thc prcparation of Ilic financial statcmcnts whiLh give a Irue and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statLmenls that are free from mllferi81 mi8St8tement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible fnr &8se88ing the charity's ability to continue as a going concern, disclosing, as appli¢abl¢. mattcrs rclatcd to going LonLem and using the going concern ba515 of accounting unl5 the trustes either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 10
Report of the Independejjt Auditors to the Trustees of Hutnan Welfare International Charitable Trust Our responsibilities for the audit of the financial statemetEts We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordanGe with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtsin reasonable assurance aLTh)ut whether the financial statem¢nls as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors ihat in¢lud¢s our opinion, Reasonable assurance is a high Icvel of &ssuranLe, but is not a guaranlee ihal an audit conduc*d in accordance with ISAS (UK) will always detect a material missutement when il exists. Misstaternents can arise from fraud or emr and ar¢ considered material if, individually or in the aggregate, they could r¢asonAbly be expected to influence the economi¢ decisions of users tsken on the basis of these financial statements. We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perfonn audit proccdures r¢sponsiv¢ lo those risks. Including obtaining audit evidence that is sufficient and appropriate to provide a basis of our opinion. A further d¢scription of our respoiisibilities for the audit of the financial stateinenls is loCad on the Financial Rcporting Council's wcbsitc at www.frc.org.ukJaudilorsr¢sponsibilities. This description forms part of our Report of Ihe Indcpendent Auditors, Use of our report This report is Inade solely to ihe charily's Iivstccs, as a b()dy, in ac¢oiYiaiic¢ with Part 4 of the Charities {Accuunts and Reports) Regiilations 2008. Our audit work htis been und¢rtakcn so that we might slale to lh¢ charity's li'uslc¢s thos¢ rn8tteis we dre required lo slatc to thcrn in an audilors, Irwrt and for no other purpose. To the fullest extent perniitled by law. we do not accept or assume responsibility to anyonc oihcr tlian thc cliarity and the charity's Irusfees as a body, for our audit work, for tliis report, or for the opinions we have formed, S Syedain & Co c.hartered Accountants & Ststutory Auditors First FI(r 87 Kenton Road Harrow Middlesex HA3 OAH Pagell
Human Welfare International Charitable Trust Statement of Financial Activities for the Year Ended 31st December 2022 31.12.22 Total funds 31.12.21 Total funds Unrestricted Restricted fund fund Notes INCOMF. AND FNDOWMENTS FROM Dot)afions and legacies 556,846 556.846 554.492 Investment income 53,000 53,000 42,720 Total 609,846 609,846 597,212 EXPLIYI)I'I'IIRF. ON Charitable activities Reli¥ous Aciivity Charitable Donations Support costs and Administration cOS 122.184 122,184 70,874 65,000 386,386 313,507 313,507 Other 408.103 Total 435,691 435.691 930,363 Net gains on investm¢nts 54.000 54,000 355.606 IYET INCOME 228,155 228,155 22,455 RECONCILIATION OF VUNDS Tolal funds bmught fonvard 2,666,690 2.666,690 2,644,235 I'O'I'AL FUNDS CARRIED FORWARD 2.894,845 2,894,845 2,666,690 The notes form part of these financial statements Page 12
Human Welfare Intsrnational Charitable Trust Statement of Flnancial Position 31st December 2022 31.12.22 Total funds 31.12.21 Total funds Unrestricted R¢stri¢ted fund fund Notes FIXFD ASSETS Tdngible assets Investment property 10 2,561,857 11 1,354,LKJO 2.561,857 2,605,761 ,354.000 ,300,000 3.915.857 3,915,857 3,905,761 CUIUiLN'I' ASSL'I'S Debtors Cash al bank and in hand 12 21,879 422,827 21,879 422.827 20,368 380,761 444,706 444,706 401.129 CREDITORS Amuunls fulling due within one year 13 (293,676) (293.676) (301,719) NET CURRENT ASSETS 151,030 151,030 99,410 TOTAI. ASSETS LESS CURREf4T LIABILITIES 4,066,887 4,066,887 4.005,171 CREDII'ORS Ainouiits falling due after Imore than on¢ year 14 (1,172,042) (1,172,042) (1,338,481) NET ASSETS 2.894,845 2,894,845 2,666,690 The notes foni) part of these financial statements Page 13 continued...
Human Welfgre Illternntional Charitable Trust Statement of Finftnelal P05ition- eontlnued 31st December 2022 FUIYDS Unrestricted fis 17 2.894.845 2,661690 TOTAL FUNDS 2,894,845 2,666,690 The financial stat¢m¢nts were approved by the Board of Trnstec5 and authoris&l for issu¢ on &).-..}61. ..2ol4. and were si8lloI on its behalf by.. MrDSS The notes fom] parL of th&se financial ststements Page 14
Human Welfare International Charitable Trust Statement of Cash Flows for the Year Lnded 31st December 2022 31.12.22 31.12.21 Notes Cash flows from operAting Aetiviti&s Casli g¢nerated from operations Interest paid 282,454 147,120) 238,737 (46,991) Net ¢ash providcd by operating activities 235,334 191,746 Cash flows from investing activities Purchase of tangible fixcd assets (30.243) (1,842) Net cash used in iiive$tin8 activities (30,243) (1,842) Ca$h floivs from finaneing aetivitles Loan repaym¢niS in year (163,025) (91,583) Net cash used in financing activities (163.025) (91,583) Change in c¥sh and ¢osh equiv#lents in the reporling period Cash and cash equivalenLs #t the beginning of the reporting period 42,066 98,321 380.761 282.440 Cash and cash equivalents at the end of the reporting period 422,827 380,761 The notes form part of these financial statements Page 15
Human Welfare International Charitable Trust Notos to the Statement of Cash Flows for th¢ Year Ended 31st December 2022 REcof4ciLIATIOIY OF NET IIYCOME TO NET CASH FLOW FROM OPERATING ACTIVITtES 31.12.22 31.12.21 Net income f(Jr the reporting period (as per the Statement of Financi&l Activities) Adjustments for: Depreciation charges Gain on investments Intcrcst paid Impairment of tangible fixed assets Increase in debtors (Decreaseyincrease in creditors 228,155 22,455 74,147 70,917 (54,000) (355,606) 47,120 46,991 408,103 (1,005) 46,882 (11,457) Net Ca5b provided by operations 282,454 238,737 ANALYSIS OF CHANGES IN NET DEBT Atl,1,22 Cash flow At 31.12.22 Net eash Cash at bank and in hand 380,761 42,066 422,827 380,761 42,066 422,827 Debf Debis falling due within l year Debis falling due after l year (193,881) (1,338,481) (3,414) (197,295) 166,439 (1,172,042) (1,532,362) 163.025 (1.369,337) Total (1,151,601) 205,091 (946.510) The notes forni part of these financial statsments Page 16
Human Welfare International Charitable Trust Notes to the Financial Statements for the Year Ended 31st December 2022 ACCOUNTING POLICIES Basis of preparing the financial statements The financial stateinents of the Lharity, which is a public benefit entity under FRS 102. have beeii prepared in accordance with the C,harities SORP (FRS 102) 'Accounting and Reporting by Chariti¢s'. Statement of Recommended Pi2ctice applicable to charities pirparing their accuunts in accordance with the Financial Reporting Siandard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019),, Financial Reporting Standard 102 The Financial Rcporting Standard applicable in the UK and Republi¢ of Irelaiid, and the Charilies Act 2011. The financial stat¢ment$ have been prepared under the historical cost convenlion, as modified by the revaluation of certain assets. Income All inconie is recognised in tlie Statement of r.inaiicial Activilics once the Trust has entillemenl 10 th¢ fLinds, it is probable that the income will be received and Ihc amount Lan be In¢asured reliably. Cash donations are recognised on reLeipl. Interest received is recognised when receivable. The Trust receives gifts in kind in the fomi of food a5 part of the congregational offerin8S. These gills in kind are used as part of the free langgr (fuod) and as part of the items r¢quired in the day to day rlinning of the Gurdw#ras'. 'lThc amoiinl involvcd is noi considered malcrial in relation lo Ihc total incoming r¢sourctts. The gifis in kil of foud oflering has not bccn incliid¢d in the aLcounls. Ass¢ts given for use by the Ti'usl are recogni5ed when re¢¢ivable. Expenditure Liabilities are recognised as expenditure as soon as there is a leglll or constructive obligation committing thc Trust to thal expenditure, il is pi'obable that a ti'ansfer of economic btncfits will be required in settlement and the amount of the obligation can be measured reliably. Expeiidilure is accounted for on an accruals basis and has been classified undcr hvadings that aggregate all cost related lo the category. Where costs cannot be directly attributed to particular headii)gs they have been allocated to activities on a bdsis consistent with th¢ use of r¢sourc¢s. Governance costs iiicludes the costs attributsble lo Ihe Trust's compliance with Constitutional and ststutory requirements, audiL Trusl¢e'S expenses and reimbursed expenses. The Trust has only a few levant activity categories on which resources are expended and as such th¢ ¢osts between the different categories are easily allocated without the use of any method of apportionment. The Trust provides provision of the scripture of th¢ Sikh religion called the "Sri Guru Granth Sahib" to be read in iY)th the Gurdwaras, 2417 which requires employing sclf employed priests on a contractual basi5 who are paid as soon as they h&ve fulfilled their duties. Page 17 coiitinued...
Human Welfare International Charitable Trust Notes to the Financial Statements- continued for the Year Ended 31st December 2022 ACCOUNTING POLICIES- continued Expenditure Grants otTered subj¢¢t lo conditions which have not been met at the year end dats e noted as a commitment but not accrued as expenditure. Voluntary help A significant amount of time is spent exnded on th¢ Ttvst's activities which is donated free of charge. It is not possible to quantify the value of time given and accordingly it is neither recorded as donated income nor as an expense in the financial statements, T2ngible fjxed assets Depreciation is piDvided at Ihe following annual rates in order to write off each asset over its estimated useful life. Freehold prop¢rty Fixture and Fittings 20/0 on cost 150/0 on reducing balance Invostment property Inv¢stm¢nt properly J whi¢h is prop¢rty held to earn rentsls andlor for capital appreciation, is initi&lly measured al cost and subscqucntly mcasurcd using the fair valuc model and slated at its fair value al (he reporting end dale. 'I'he surplus or defi¢il on r¢valuation is reLognised as part of ihe nct incoin¢l(loss) for th¢ ycar. Taxation The charity is exempt froin tax on its charitable activities, Fund ac¢ounling Unrestricted funds can be used in accordance with the charitsblc objcctives al the discretion of the Irusiees. R¢stricted funds can only be used for particular $trIcted purposes within the objects of ihe Trust. Restrictions arise when specified by the donor or when funds are raised for particular restricted puryjoses, The restricted funds are in relation to donations made specifically towards the building of the hospital in Ludhiana known as the Baba Jaswant Singh Trust Ludhiuna, India. Going concern At th¢ time of approving the accounts, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trusiees, continue to adopt the going concern basis of accounting in preparing ihe accounts. Page 18 continued...
Human Welfare International Charitable Trnst Notes to the Financial Statements - continued for theyear Ended 31st De¢¢mber2022 DONATIONS AND LEGACIES 31.12.22 31.12.21 Donations Insurance claiins 552,102 4,744 454,492 I00,OIK) 556,846 554,492 The insurance claim relates to amounL8 received from the insurance wmpaiiy in relation to the initial costs incurred on GAD Hall tu to ensure that the sile is secure for health and safety purposes. Majority of the initial Costs wei'e received last year. INVESTMELYT INCOME 31.12,22 31.12.21 Renis r¢c¢iv¢d 53,(MlO 42,720 CHARITABLE ACTIVITIES COSTS Support cosls {scc note 6) Direct Costs Totsls Religous A¢tivity Suppoit costs and Administration Costs 122,184 122,184 292,848 20,659 313,507 415,032 20,659 435,691 GRANTS PAYABLE 31.12.22 31.12.21 Chariiabl¢ Donations 65,000 Page 19 continud..-
Human Welfare International Charitable Trust Notes to the Financial Statements - continued for the Year F,nded 31st December 2022 SUPPORT COSTS Governance costs Management Finance Totsls Support Costs and Administration Costs 607 1,906 18,146 20,659 TRUSTEESI RFMUNERATION AND BENEFITS There were no trustees, remiinerdtion or oiher benefits for Éhe year ended 31st Decemkr 2022 nor for the year elided 31 st December 2021. Trustees, expenses ' There were no Trustee expenses this year. STAJ b COSTS 31.12.22 31.12,21 Wages and Salaries 16,596 16,598 16,596 16.598 The average monthly iiumber of employees during tl)e year was as follows: 31.12.22 31,12,21 Southall No employees received ¢moluments in excess of £60,000. Page 20 ontinued...
Human Welfare International Charitsble Trust Notes to the Financial Statements - continued ror th¢ Year Ended 31st Deeember 2022 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unreslricted Restri¢l¢d fund rund Total fuiids INCOME AND F,NDOWMENTS FROM Donations and legacies 554,492 554.492 nveslment income 42,720 42,720 Total 597,212 597,212 EXPENDITURE ON Charitable activitie$ Religoiis Activity Charitable Donalions Support costs and Administration Costs 70,874 64,578 70,874 65,000 422 386,386 386,386 Other 408,103 408,103 Total 929,941 422 930,363 Net gains on investments 355,606 355,606 NET INCOME/(EXPEIYDITURE) 22,877 {422) 22,455 RECONCILIATION OF FUNDS Tolal funds broughi forward 2,643,813 422 2,644,235 TOTAL FUNDS CARRIED FORWARD 2,666,690 2,666,690 Page 21 continued...
Human Welfare International Charitable Trnst Notes to the Financial Statements- continued for the Year Ended 31st Deeember 2022 10. TANGIBLE FIXED ASSETS Fixture nd Fittings Freehold property Totsls COST At 1st January 2022 Additions 3,110,762 196,693 3,307.455 30,243 30,243 At 3 1st Decembcr 2022 3,110,762 226,936 3,337,698 DEPRECIATION At I st January 2022 Charge for year 554,310 62,215 147,-384 11.932 701,694 74,147 At 31 st December 2022 616,525 159,316 775.841 NET BOOK VALUE At 31 st December 2022 2,494.237 67.620 2,561,857 At 31 st December 2021 2.556.452 49,309 2,605,761 I I. INVESTMENT PROPFRTY FAIR VALLE At 1st January 2022 Revaluation 1,300,000 54,000 At 31 st December 2022 1.354,000 NET BOOK VALUE At 31st December 2022 1,354,000 At 31 st December 2021 1,300.11110 Page 22 continued...
Human Welfare International Charitable Trust Notes to the Financial Statements - ¢ontinued for the Year Ended 31st December 2022 I I. INVESTMETr4T PROPERTY - Continued Fair valu¢ at 31 st December 2022 is reprtt¢nted by: Valuation in 2014 Valuation in 2015 Valuation in 2016 Valuation in 2017 Valualion in 2019 Valuation in 2020 Valuation in 2021 Valuation in 2022 Cost 378.860 30,000 87,000 (3.123) I i 0,000 20,517 355,606 54,000 321,140 1,354,OUO The Trustees consider tliat the carrying value of the investment pi'operties approximates to their fair value. Th¢ fail. value 15 based on an independent valuers, valuation. 12. DEBTORS: AMOUNI'S FALLING DUE WITHIN ONE YEAR 31.12.22 3112.21 Other debtors Prepaym¢nts 13,006 8,873 11,216 9,152 21,1179 20.368 Page 23 continued...
Human Welfare Internalional Charitable Trust Notes to the Financial Statements- continued for th¢ Year Ended 31st December 2022 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.22 31.12.21 Bank loans and overdrafts (see note 15) Other Io(In5 (see note 15) Social security and other taxes her creditors Accrued expenses 167,295 30,000 1,046 78,785 16,550 163,881 30,000 710 72,486 34,642 293,676 301.719 In¢luded within Other Crediloi's is ali amount £35,544 which is the liability to Juxtaposition l.imited as part of the GAD Hall initial clear up work. 14. CREDITORS: AMouKfs FALLINC¥ DUE AwfER MORE THAN ONE YEAR 31.12.22 31 12.21 Bank loans (see note 15) 1,172,042 1,338,481 15. LOANS The Trust ha5 two l()an.4 with Llnyd8 bank. Tl)e first was taken oul in 2012 for a pcriod of 180 months at a fixed rate of interest of 3.60600/• per aiinum for seven years. In Qctober 2019 the interest rale for the loan was re-negotiatcd and a iiew fixed interest rate of 2.9420/0 per annum had becn agr¢ed, The final inslalmeni of th¢ loan r¢payable on 2611012028. The second loan was taken out in 2017 for a period 01. 240 months at a ralc of interest of base plus 3 % whicli was 3.250/0 per annum &t the year end. Otlier loans relate to a £30,000 Interest Free Loan which had been provided by members of Ihe congregation. Page 24 continued...
Human Welfare Internation21 Charitable Trust Not49 to the FiJ)ancial Statements- continued for the Year Ended 31st December 2022 16. SECURED DEBTS Tlie following secured debts are included within creditors: 31.12.22 31.12.21 Bank loans ,339,337 1,502,362 Both th¢ bank loans are secured by way of a fixed ¢hai'g¢ over some of the freehold properties that the Trust holds. 17. MOVEMELYf IN FUNDS Net moveiiient in funds At 31.12.22 At 1.1.22 UDr¢stri¢t¢d funds General fund 2,666,690 228,155 2,894.845 TOTAL FUNDS 2,666.690 228,155 2,894,845 Net movement in funds, included in the above are as follows: Iii¢oining Resources resources expended Gains And Movement losses in funds Unrestricted funds General fund 609,846 (435,691 } 54,000 228.155 TO'fAL FUNDS 609,846 (435,691) 54,000 228.155 Page 25 continued...
Human Welfare lllternatsonal Charitable Trust Notes to the Financial Statements- continued for the Year Ended 31st December 2022 17. MOVEMENT IN FUIYDS - continued Comparatives for movement in funds Nel movement in funds Al 31.12.21 At 1.1.21 lJnr¢stricted funds General fund 2,643,813 22,877 2,666,690 Restri¢ted funds Hospitsl Fund 422 (422) TOTAL FUNDS 2,644,235 22,455 2.666.690 Comparative net movement in funds. included in the abov¢ are as follows: Incoiming Resources rcsources expended Gains and Movenient l()sses in funds UnrestriL*LYJ funds Genei'al fund 597,212 (929,941) 355,606 22,877 Restrieted fund8 Hospital Fund (422) (422) TOTAL FUNDS 597,212 (930,363) 355,606 22,455 Page 26 coiitinued...
Human Welfare International Charitable Trust Notes to the Financial Statements- continued for the Year Ended 31st December 2022 17. MOVEMEwf IN FUNDS - continued A current year 12 Inonths and prior year12 months coinbined p05ilion is as follows.. Net movement in funds At 31.12.22 At 1.1.21 unrestrict funds Geiieial fuiid 2,643,813 251,032 2,894,845 Restricted funds Hospital Fund 422 (422) TOTAL FUNDS 2.644,235 250,610 2,894,845 urrent year 12 rnonihs and prior year 12 months combined net movemeiil in funds, in¢luded in the above are as follows: Incoming Resources resources expended Gains and Movement Sosses in fuiids Unrestricted funds G¢nci21 fiiiid 1,207.058 (1,365,632) 409,606 251,032 Restricted fuiids Hospital Fund (422) (422) TOTAL FUNDS 1,207,058 (1.366,054) 409,606 250,610 Page 27 ¢ontinu¢d...
Human Welfare International Charitable Trust Notes to the Financial Statements- continued for the Year Ended 31&t December 2022 18. RELATED PARTY DISCLOSURES The Trusi donated Nil (2021:£65,000) during the year ended 31 December 2021 to the Baba Jamant Singh Trust in Ludhiana India. Mr Anhad Raj Singh is the Chairperson for both the Trusts in UK and India. The Trust had engaged a company called Juxtaposition Limited to assist in the cleardnce work on the GAD Hall as a result of the darnage caused by thc firc during the year. Mr Surinder Jagdev, one of the Iru5tees of the Trust is also a director of this Company, There is still an outstaiidiiig cr¢dilor balance of £35,544.33 showing at the yeai. end. 19. POST BALANCE SHEET EVENTS The insurance claim settlement for the GAD hall, that was damaged as a result ora major fire during the year. was £1,355,746 and the gmount received by the Trust, iiet of initial expenses, was £l,1127,256 duri118 August 2023. Some of the restoration on GAD hall commcnced during the end of 2023 and it is anticipated that the work should be ¢ompl¢ted by the end of 2024. Page 28
Human Welfare International Charitable Trust Detsiled Statement of Financial Activities for the Year Lnded 31st December 2022 31.12.22 31.12.21 INCOME AND ENDOWMENTS Donations and legacies Donations nsurance claims 552,102 4.744 454,492 100,000 556,846 554,492 Investment income Rents received 53,000 42.720 Total incoming resources 609,846 597,212 EXPENDffURE Charltable aetiviti Wages Rcnt and Rales Insurance Light and heat Sundries Repuir & Maintenance Food & Cateriiig Buildings repairs Visiling priests Freehold property Fixlures and fittings Bank108n intcrcst Charitable Donations 16.596 18,920 19.697 122,189 1,012 13,721 13,421 10,725 77,484 62,215 11,932 47,120 5 6,598 13,911 10,452 61,405 594 143,915 4,415 20,163 49,861 62,215 8,702 46,991 65.UOO 415,032 504,222 OÉlier Impairn)eni losses for langible Iixed assets 408,103 Support eosts Management Postage and stationery caled fonvard 432 432 132 132 This page does not forni part of the statutory financial stslements Page 29
Human Welfare Jnternational Charitable Trust Detailed Statement of Financial Aetivities for the Year Ended 31st December 2022 31.12.22 31.12.21 Management Brought forward Advertising 432 175 132 607 132 inanee Elank cliarges 1,906 1.553 Governance costs Auditors, remuncratiun Auditors, remuneration for non audit work Teleplione 5,750 5.000 9.158 3,238 8,400 2,953 18.146 16.353 Total resources expended 435,691 930,363 Net incomel(exi)endlture) before gains and losses 174.155 (333,151) Rc#liscd reeo%ni5ed gains losses RL'aliscd gains/(losses) on inveslmenl property 54,000 355,606 Net income 228,155 22,455 This page does not forni part of the statutory financial stalements Page 30