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2023-03-31-accounts

REGISTERED CHARITY NUMBER: 1102555

GNNET

Prime Accountants Charter House 161 Newhall Street Birmingham West Midlands B3 1SW

ANNUAL REPORT OF THE TRUSTEES & FINANCIAL STATEMENTS 2022 - 2023

CONTENTS Pages
Report of the Trustees 3 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash flow Statement 14
Notes to the Cash flow Statement 15
Notes to the Financial Statements 16 to 25

Page 2

GNNET

Guru Nanak Nishkam Education Trust (GNNET) was incorporated on 11 December 2002, and was registered with the Charity Commission as a charity on 9 March 2004. GNNET is governed by the memorandum and articles of association as a not-forprofit organisation whose principle objective is the provision of community wide academic education underpinned by a Sikh multi-faith ethos in order to advance spirituality, morality, ethics and social values. GNNET has been created for the advancement of the objectives of Guru Nanak Nishkam Sewak Jatha (Birmingham) UK (GNNSJ) in the field of education.

GNNSJ has a long established and clearly focussed programme of community investment and regeneration. It devotes resources to promote social and economic welfare with particular emphasis on education and community regeneration initiatives.

Education

Education from a Sikh perspective, should not be limited to acquiring intellectual or technical knowledge alone; it would include fostering contemplation, wisdom and key values which underpin the nature of economic, scientific, social and other advances.

GNNET and NST are means for GNNSJ to manage the education programmes and support service provision from nursery to funding university level programmes.. The new UN seventeen sustainable goals include the provision of quality education, GNNET’s endeavours will continue to support this overarching goal. Education is a fertile arena for drawing out and cultivating key human/spiritual values in young children to nurture them as good human beings. In a world so troubled by ignorance, misconceptions and hostilities based on religious identity; the development of a sound model for interfaith education is imperative.

The specific projects to deliver the above public benefit are described below:

  1. Values based education helps to broaden the curriculum and creates good human beings

  2. Imparting Godly values empowers the young to be virtuous and take civic responsibility

  3. Creates employment opportunities and helps to regenerate the local area

  4. The whole ethos of volunteering encourages and enables the community to contribute to rebuilding the local area

  5. Builds capacity of individuals, families and local communities to be self sufficient

  6. Provides community support, promotes community action and cohesion

  7. Encourages self-help and self-reliance within communities at collective and individual levels

  8. It has a multiplier effect (i.e. creates a virtuous cycle):

  9. Embedding values leads to positive attitudes in young people

  10. Volunteering promotes altruism

  11. Virtuous actions help others

  12. Creates strong families and supportive communities

  13. Contributing to the Government’s social action initiatives such as the ‘Big Society’ agenda, National Citizen Service and International Citizen Service.

  14. Education is the best investment for the future, it facilitates engagement and partnerships with other organisations

Page 3

THE TRUSTEES REPORT

The Trustees present their report with the financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04614219 (England and Wales)

Registered Charity number 1102555

Principal Address

18 -20 Soho Road Handsworth Birmingham B21 9BH

OBJECTIVES AND ACTIVITIES Significant activities

The principal activities during the year were the operation of three full day care nursery’s and also that of a 25% holding in its subsidiary Nishkam Security Limited.

The following is a summary of the education initiatives:

Trustees

Bhai Sahib, Bhai (Prof) Mohinder Singh Ahluwalia, KSG, OBE, Chairman Mr Jarnail Singh Bhinder Mr Parvinder Singh

Auditors

Prime Accountants Charter House 161 Newhall Street Birmingham West Midlands B3 1SW

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a charitable trust.

Risk management

The Trustees actively review the major risks which the Charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks faced by the Charity and confirm that they have established systems to mitigate the risks.

GNNET has contributed to the following GNNSJ education endeavours :

FINANCIAL REVIEW

Reserves policy

The present level of funding is adequate to support the continuation of the current activities.

Principal Funding Source

The Charities principal funding source arrives from government funding for education and childcare.

Transactions and financial position

Going concern

The accounts have been prepared on the basis of being a going concern. The Trustees confirm that they have taken into account all available information about the future for at least 12 month from the date the accounts were approved and conclude there is no uncertainty relating to going concern

The Statement of Financial Activities shows net loss of £27,530 for the year as the new Nishkam Nursery Leeds establishes itself. The Balance Sheet shows total reserves of £364,376.

Page 4

THE TRUSTEES REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont.)

Public benefit

GNNET carries out a wide range of activities in pursuance of its charitable aims. The trustees consider that these activities, summarised below, provide benefit both to those who attend the GNNET educational sites and the wider communities it serves. The nurseries continue to be in high demand with waiting lists for Nishkam Nursery Birmingham.

Pay policy for senior staff

All directors give of their time freely and no director received remuneration in the year.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings.

Investment Policy

Aside from retaining an adequate reserves each year most of the charity’s funds are to be spent in the short term. The charity has therefore not considered any plans for long term investments.

Recruitment and Appointment of Management Committee

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the minimum and maximum members of the Management Committee shall be determined by the company in Annual General Meeting, but until so fixed there shall be no maximum number and the minimum number of members of the council shall be two. All member of the Management Committee give their time voluntarily and received no benefits from the charity.

Related Parties

The charity set out its related party transaction in note 18 of the financial statements.

Page 5

Nishkam Nursery Provision

Nishkam Nursery - Full Day Care Nursery - Birmingham

In September 2009 GNNET opened a Full Day Care Nursery at 1 Soho Road, Handsworth. During a six month period from March 2009 skilled volunteers and craftsman renovated the building in record time. Originally built in 1865 as a private residence it was first used as a War time Nursery in 1944.

This thriving Nursery is now providing much needed faith inspired education and high quality child care for local young children, quality employment and training for local people, within a greatly renovated building which had previously been left empty and unused.

The popularity and reputation of the Nursery continues, as it is oversubscribed and the number of children wishing to register in September 2017 was well in excess of the current capacity.

Currently the Nursery utilises the dining facilities of the Nishkam Primary School which is already a constrained area, this is due to the ancillary space within the Nursery being limited. This has scheduling implications for activities as the lunch time period at the Primary School is extended. In order to overcome the constraints, the development of further space is required.

Nishkam Nursery - Full Day Care Nursery – Wolverhampton

In September 2015 GNNET opened a Full Day Care Nursery in Wolverhampton following the success of the Nishkam primary. Currently the Nursery utilises the premises of the Nishkam Primary School which has the capacity given it is growing incrementally year on year. During a three month period from June 2015 skilled volunteers renovated the nursery area in record time for the opening in September 2015.

This Nursery is now providing much needed faith inspired education and high quality child care for 34 local young children, quality employment and training for local people, within a great community atmosphere.

Nishkam Nursery Birmingham and Nishkam Nusrey in Wolverhampton have both received good OfSted ratings at the last inspections.

Strong leadership and effective support for staff's professional development have enabled the setting to maintain its good-quality service since the last inspection.

Nishkam Nursery - Full Day Care Nursery – Leeds

Nishkam Nursery Leeds opened in September 2021. in a new purpose build facility within the site of the Gurdwara Sahib (Sikh Place of Worship).

The nursery provides multi-agency, faith-based childcare services for families and children aged 6 weeks to 5 years from 8am to 6pm.

Birmingham Birmingham Wolverhampton Wolverhampton Leeds Leeds
F/T P/T F/T P/T F/T P/T
Baby 5 28
Toddler 4 21 3 18 9
Preschool 28 22 14 25 2 3
TOTAL 37 71 17 43 2 12

Page 6

GURU NANAK NISHKAM EDUCATION TRUST Report of the Trustees for the year ended 31 March 2023 STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Guru Nanak Nishkam Education Trust for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generallv Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial ReportinE Standard applicable in the UK and Republic of Ireland" Company law reqLJires the trustees to prepare financial Statements for each financial year which give a true and fair view of the state of affaifs of the charitable company and of the incoming resource5 and application of resources, including the income and expenditure. of the charitable company for that period. In preparing those financial statements, the trustees are required to.. select Sultable accounting policies and then apply them consistentlv,. observe the methods and principles in the Charity SORP; make judgements and e5timate5 that are reasonable and prudent,. state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustee5 are responsible for keeping proper accounting records which disclose with reasonable accuracv at any time the financial position of the charitable company and to enable them to ensure that the financi31 statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention arid detection of fraud and other irregularities. In so far as the trustees are aware- there is no relevant audit information of which the charitable company's auditors are unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Prime Accountant5, will be proposed for re-appointment at the forthcorning Annual General Meeting. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company dirertors, on ...G..l..I c) J..L3..... and signed on the board's behalf by.. Bhai Sahib, Bhai (Pro l Mohinder Singh Ahluwalia, KSG, OBE, Chairman Trustee Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GURU NANAK NISHKAM EDUCATION TRUST

Opinion

We have audited the financial statements of Guru Nanak Nishkam Education Trust (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GURU NANAK NISHKAM EDUCATION TRUST

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GURU NANAK NISHKAM EDUCATION TRUST

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEIABERS OF GURU NANAK NISHKAM EDUCATION TRUST A further d8scJiption of our respongkn'lities fcf audit of the finarK4al statements 1$ Iwaled w the FinarKial Re￿￿ng Counal's website at W4•W.frC.ory.ukJaudrt￿Th￿51b￿1t￿S. This deswlion lorms part of our Rep(Yt of the Independent Audit￿s. ofour rwrt This report is made solety to the ¢orrtable c{￿pa￿S membets. as a b)ty. in ac(>)rdancè wth Chapter 3 of Part 16 of the Companies Acl 2006. Our autht w￿k has been undertaken so that we might stsle to the aritaue companls members those matters we are rewred to stale lo Ihwn in an auditors. report and no oth8r purpose. To the full8sI extent perrThtted by law. we do ncrt aLxept or assurne responsi￿lIty to anyone other than the charilatde company and the tharitabb cl￿panY'S membtrs 85 a body. for audit wtyk. fc this report. or for the opinions we have fomH Mrxgan Davies FCA {Serior Stattmory ALKiitcff) for and on behalf of Prwn8 Chartered A¢¢ountsnls ststulory Auditor 161 Newhal Street 'rrn￿gharn B3 1SW Page 11

GURU NANAK NISHKAM EDUCATION TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Fundraising
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Staff Costs
Premises Costs
Support Costs
Governance Costs
Grants to Institution
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
-
938,225
46,740
984,965
664,258
182,742
136,419
29,076
-
1,012,495
(27,530)
391,906
364,376
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2023
Total
funds
£
-
938,225
46,740
984,965
664,258
182,742
136,419
29,076
-
1,012,495
(27,530)
391,906
364,376		 2022
Total
funds
£
1,500
815,208
44,021
860,729
576,856
95,812
107,080
25,411
200,000
1,005,159
(144,430)
536,336
391,906

The notes form part of these financial statements

Page 12

GURU NANAK NISHKAM EDUCATION TRUST BALANCE SHEET 31 MARCH 2023 2023 Total funds 2022 Total funds Unrestricted Restricted fund fund Notes FIXED ASSETS Tangible assets Investments 12 13 195,764 195.764 203,358 195,765 195.765 203,359 CURRENT ASSETS Debtors Cash at bank and in hand 14 57,933 156,166 57,933 156,166 45,137 182,815 214,099 214,099 227,952 CREDITORS Amounts falling due within one year 15 {45,4881 {45,4881 {39,4051 NET CURRENT ASs￿s 168.611 168.611 188.547 TOTAL ASSETS LESS CURRENT LIABILITIES 364.376 364.376 391,906 NET ASSETS 364,376 364,376 391.906 FUNDS Unrestricted funds 17 364.376 391,906 TOTAL FUNDS 364,376 391,906 The financial statements were approved by the Board of Trustees and authorised for issue on and were signed on its behalf by= Bhai Sahib, Bhai (Proli Mohinder Singh Ahluwalia, KSG, OBE, Chairman The notes form part of these financial Statements Page 13

GURU NANAK NISHKAM EDUCATION TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2023
£
(12,907)
(12,907)
(13,742)
(13,742)
-
-
(26,649)
182,815
156,166		 2022
£
(107,311)
(107,311)
(50,048)
(50,048)
10,000
10,000
(147,359)
330,174
182,815

The notes form part of these financial statements

Page 14

GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Increase in debtors
Increase in creditors
Net cash used in operations		 2023
£
(27,530)
21,336
(12,796)
6,083
(12,907)		 2022
£
(144,430)
19,161
(737)
18,695
(107,311)
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 182,815 (26,649) 156,166
182,815 (26,649) 156,166
Total 182,815 (26,649) 156,166

The notes form part of these financial statements

Page 15

GURU NANAK NISHKAM EDUCATION TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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

Allocation and apportionment of costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include cost related to statutory audit and legal fees.

Tangible fixed assets

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

Short leasehold - Straight line over 25 years Fixtures and fittings - 25% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 16

continued...

GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The Charity operates a defined contribution pension scheme, managed by Nest. Contributions payable to the Charity's pension scheme are charged to the unrestricted funds and are included in the Statement of Financial Activities in the period to which they relate. At the end of the period the Charity owed £2,319 (2022: £1,843) to the pension provider.

Income and expenditure account

The Statement of Financial Activities discloses the identical information of the Income and Expenditure Account and as such no separate Income and Expenditure Account has been prepared.

Going Concern

The accounts have been prepared on the basis of being a going concern as outlined in the Trustees' report.

Debtors

Short term debtors ar measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised costs using the effective interest method.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit and loss account.

Donated Services

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met and the receipt of economic benefit can be measured reliably. In accordance with the Charities SORP (FRS102), the general volunteer time of Volunteers is not recognised. Please refer to the trustee's annual report for more information about their contribution.

Government Grants

Grants are accounted for under the accruals model as permitted by FRS102. Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure. Government grants relate to the receipt of Coronavirus Job Retention Scheme income which is included under grant income.

Page 17

continued...

GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2.
DONATIONS AND LEGACIES
Revenue grants and donations
3.
INVESTMENT INCOME
Rents received
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Nursery fees - parental
contribution
Fundraising
Early Years Government
funding (3-4 year olds)
Fundraising
Job retention scheme
grants
Fundraising
Grants received, included in the above, are as follows:
Coronavirus job retention scheme		 2023
£
-
2023
£
46,740
2023
£
456,419
481,806
-
938,225
2023
£
-		 2022
£
1,500
2022
£
44,021
2022
£
328,639
453,584
32,985		 2022
£
1,500
2022
£
44,021		 2022
£
1,500
815,208
2022
£
32,985

Due to the Covid-19 pandemic, various Government grants and support schemes were put in place, to which the company was entitled to utilise and are included in charitable income.

5. CHARITABLE ACTIVITIES COSTS

Staff Costs
Premises Costs
Support Costs
Governance Costs		 Direct
Costs
£
-
-
47,665
-
47,665		 Support
costs (see
note 7)
£
664,258
182,742
88,754
29,076
964,830		 Totals
£
664,258
182,742
136,419
29,076
1,012,495

Page 18

continued...

GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

6. GRANTS PAYABLE

GRANTS PAYABLE
Grants to Institution
The total grants paid to institutions during the year was as follows:
GNNSJ Leeds		 2023
£
-
2023
£
-		 2022
£
200,000
2022
£
200,000

7. SUPPORT COSTS

Governance
Management
costs
£
£
Staff Costs
664,258
-
Premises Costs
182,742
-
Support Costs
84,002
4,752
Governance Costs
29,076
-
960,078
4,752		 Totals
£
664,258
182,742
88,754
29,076
964,830

8. NET INCOME/(EXPENDITURE)

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

Auditors' remuneration
Depreciation - owned assets		 2023
£
4,752
21,336		 2022
£
4,320
19,161

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Page 19

continued...

GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10. STAFF COSTS

Salaries and wages
Social Security costs
Subcontractors
Pensions
The average number of employee during the year		 2023
£
589,943
32,811
30,494
11,011
664,259
2023
32		 2022
£
528,543
27,921
10,935
9,457
576,856
2022
31

All employee time involves providing either support to the governance of the charity or support services to charitable activities.

The trust considers its key management personnel comprise of the trustees and the Nursery Managers. The total employment benefits of the key personnel were £67,631 (2022: £63,064). No employees had employee benefits in excess of £60,000.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Fundraising
Investment income
Total
EXPENDITURE ON
Charitable activities
Staff Costs
Premises Costs
Support Costs
Governance Costs
Grants to Institution
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward		 Unrestricted
fund
£
1,500
815,208
44,021
860,729
576,856
95,812
107,080
25,411
200,000
1,005,159
(144,430)
536,336
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
£
1,500
815,208
44,021
860,729
576,856
95,812
107,080
25,411
200,000
1,005,159
(144,430)
536,336

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GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
TOTAL FUNDS CARRIED FORWARD
12.
TANGIBLE FIXED ASSETS
COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 April 2022 and 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL
TOTAL FUNDS CARRIED FORWARD
12.
TANGIBLE FIXED ASSETS
COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
13.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 April 2022 and 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 ACTIVITIES -
Unrestricted
fund
£
391,906
Short
leasehold
£
341,153
-
341,153
159,392
13,646
173,038
168,115
181,761		 continued

Restricted
fund
£
-
Fixtures
and
fittings
£
34,683
13,742
48,425
13,086
7,690
20,776
27,649
21,597

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Nishkam Security Limited

Registered office: 18-20 Soho Road Handsworth, Birmingham, West Midlands, B21 9BH Nature of business: Security provider

%
Class of share: holding
Ordinary 25

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GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Amounts owed to group undertakings
Social security and other taxes
Other creditors
Accrued expenses		 2023
£
27,718
16,057
14,158
57,933
2023
£
14,409
2,892
12,459
4,964
10,764
45,488		 2022
£
9,426
21,178
14,533
45,137
2022
£
10,169
245
8,895
9,104
10,992
39,405

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
In more than five years		 2023
£
111,421
421,084
183,681
716,186		 2022
£
111,421
445,684
270,502
827,607

The operating lease commitment relates to the lease of 5-7 Soho Road from Guru Nanak Nishkam Sewak Jatha (Birmingham) UK. During the year this property was sub-let to Nishkam School Trust for the same annual rent.

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.4.22
£
391,906
391,906		 Net
movement
in funds
£
(27,530)
(27,530)		 At
31.3.23
£
364,376
364,376

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GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
984,965
984,965
At 1.4.21
£
536,336
536,336
Resources

expended
£
(1,012,495)
(1,012,495)
Net
movement
in funds
£
(144,430)
(144,430)
Movement

in funds
£
(27,530)
(27,530)
At

31.3.22
£
391,906
391,906

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
860,729
860,729
Resources

expended
£
(1,005,159)
(1,005,159)
Movement

in funds
£
(144,430)
(144,430)

18. RELATED PARTY DISCLOSURES

During the year the following connected parties and transactions were identified:

Guru Nanak Nishkam Sewak Jatha Birmingham (UK)

A charitable company in which trustee Mohinder Singh Ahluwalia was a trustee and director. Guru Nanak Nishkam Education Trust holds a leasehold interest for the freehold of 5 to 7 Soho Road held by Guru Nanak Nishkam Sewak Jatah (Birmingham) UK.

Guru Nanak Nishkam Sewak Jatha Leeds

A sister organisation of Guru Nanak Nishkam Sewak Jatha (Birmingham) UK

Marg Sat Santokh Manufacturers Limited

A company in which the trustees Mohinder Singh Ahluwalia and J Singh Bhinder were directors.

Nishkam Civic Association

A charity in which the trustee Mohinder Singh Ahluwalia, J Singh Bhinder were trustees and directors.

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GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

18. RELATED PARTY DISCLOSURES - continued

Nishkam Healthcare Trust

A charity and its subsidiaries in which the trustee Mohinder Singh Ahluwalia has significant influence.

Nishkam School Trust

A charity in which the trustee Mohinder Singh Ahluwalia was the patron.

Nishkam Security Limited

A 25% owned subsidiary of Guru Nanak Nishkam Education Trust.

Sangat Trust

A charitable company in which the Trustee Mohinder Singh Ahluwalia has been a trustee.

2023 2022 2022
£ £
During the year Guru Nanak Nishkam Education Trust purchased the following goods:
Marg Sat Santokh Manufacturers Limited 517
During the year Guru Nanak Nishkam Education Trust made the following donation:
Guru Nanak Nishkam Sewak Jatha (Leeds) UK 200,000
During the year Guru Nanak Nishkam Education Trust received the following rent:
Nishkam School Trust
72,672		 44,017
During the year Guru Nanak Nishkam Education Trust paid the following rent:
Guru Nanak Nishkam Sewak Jatha (Birmingham) UK 44,017
Guru Nanak Nishkam Sewak Jatha (Leeds) UK
40,935		 23,380
During the year Guru Nanak Nishkam Education Trust received the following services:
Nishkam Security Limited
9,287		 2,510
During the year the following expenditure were incurred on behalf of Guru Nanak Niskam
Education Trust:
Nishkam School Trust 9,217
At the end of the year the following amounts were due by Guru Nanak Nishkam Education Trust:
Guru Nanak Nishkam Sewak Jatha (Birmingham) UK 3,814
Nishkam Security Limited 245
Nishkam School Trust
2,892		 3,190
At the end of the year the following was owed to Guru Nanak Nishkam Education Trust:
Nishkam School Trust
11,634		 10,743

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GURU NANAK NISHKAM EDUCATION TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

19. ULTIMATE CONTROLLING PARTY

The Trustees consider that the charity is jointly controlled by the Trustees and there is no ultimate controlling party.

Page 25

GNNET