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 Charte￿d 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 PER￿ORmANcE 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 D￿eMber 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 main￿n271ce 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 sU￿1¢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 Qu￿ent 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 enCOu￿ged 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 Ca￿led 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 di￿l¢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