REGISTEREDCHARITY NUM8ER.. 1102555 REGISTEREDCOMPANYNUMBER.. 04614219 GNNET GURU NANAK NISHKAM EDUCATI(X4 TRUST ANNUAL REPORTOF THE TRUSTEES & FINANCIAL STATEMENTS 2023 - 2024 CONTENTS Pages Report of the Trustees 5t08 Report of the Independent Auditors 9t012 Statement of Financial Activities 13 Balance Sheet 14 Cash flow Statement 15 Notes to the Financial Statements 16to28 .4AX Bhai Sahib Ji with Children and staff from Nishkam Nursery during visit to London Westminster to celebrate Vaisakhi in the Houses of Parliament, April 2023 GNNET Guru Nanak Nishkam Education Trust {GNNETI 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-for- profit 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 IGNNSJI in the field of education. The specific projects to deliver the above public benefit are described below: Values based education helps to broaden the curriculum and creates good human beings Imparting Godly values empowers the young to be virtuous and take civic responsibility Creates employment opportunities and helps to regenerate the local area The whole ethos of volunteering encourages and enables the community to contribute to rebuilding the local area Builds capacity of individuals. families and local GNNSJ has a long established and clearly focussed communities to be self sufficient programme of community investment and 6. Provides community support, regeneration. It devotes resources to promote social community action and cohesion and economic welfare with particular emphasis on Encourages self-help and self-reliance within education and community regeneration initiatives. communities at collective and individual levels It has a multiplier effect li.e. creates a virtuous cycle): Embedding values leads to positive attitudes in young people Volunteering promotes altruism Virtuous actions help others Creates strong families communities Contributing to the Government's social action initiatives such as the 'Big Society, agenda, National Citizen Service and International Citizen Service. 10. Education is the best investment for the future, it facilitates erbgagement and pa rtnerships with other organisations promotes Education Education from a sikh perspective, should not be limited to acq uiring 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. and supportive GNNET and NST are means for GNN5J 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 trou bled by ignorance, misconceptions and hostilities based on religious identity,. the development of a sound model for interfaith education is imperative. Pre-school -world Book day event THE TRUSTEES REPORT The Trustees present their report with the financial OBJECTIVES AND AcfiviTIES statements of the charity for the year ended 31 March Significant activities 2024. The Trustees have adopted the provisions of The principal activities du ring the year were the operation Accounting and Reporting by Charities: Statement of of three full day care nursery's and also that of a 25% Recommended Practice applicable to charities preparing holding in its subsidiary Nishkam Security Limited. their accounts in accordance with the Financial Reporting Sta ndard applicable in the UK and Republic of Ireland {FRS The following is a summary of the education initiatives: 1021 {effective l January 20191. The Eroundwork for a Voluntary Aided Primary School was initially supported through GNNET which paved the way for Nishkam School Trust to establish 4 Sikh- ethos multi-faith Free Schools. In September 2009 opening a Full Day Care Nursery. The nursery was approved by Ofsted for 58 full time places and continues to be heavily over-su bscribed. Supporting the preparatory work to open a new nursery in Wolverhampton in September 2015. Supporting the opening of a new Nishkam Nursery in Leeds in September 2021. REFERENCE AND ADMINISTRATIVE DEfAILS Registered Company number 04614219 (England and Wales) Registered Charlty number 1102555 Principal Address 18 -20 Soho Road Handsworth Birmingham B219BH Trustees Bhai Sahib, Bhai {Profj Mohinder Singh Ahluwalia, KSG, OBE, Chairman Mrjarnail Singh Bhinder Mr Parvinder Singh GNNET has contributed to the following GNNSJ education endeavours . Establishing Lectureship at University of Birmin8ham of MPhil & PhD in Sikh Studies12000-20051 Post-Doctoral Research on Religion, Civil Society and the United Nations Religions for Peace Building initiative. Supporting Nishkam School Trust in the development of 4 Sikh-ethos multi-fa ith Schools Facilitating the partnership between UOB Jubilee Centre for Character and Virtues and the Nishkam Schools. Peace Charter for Forgiveness and Reconciliation Proposed Museum of World Religions Supporting Reli8ions and Peace lectureships Auditors 8SN Chartered Accountants 3B Swallowfield Courtyard Wolverhampton Road Oldburv West Midlands B69 2JG STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, deed of trust, and constitutes a charitable trust. Rlsk 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 an nual 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. FINANCIAL REVIEW Reserves policy The present level of funding is adequate to support the continuation of the current activities. Prlncipal Funding Source The Charities principal funding source arrives from government funding for education and childcare. Transactions and financlal posltlon The Statement of Financial Activities shows net loss of £105,680 for the year as the new Nishkam Nursery Leeds establishes itself. The Balance Sheet shows tota I reserves of £835.934. Going concern The accounts have been prepared on the basis of being 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 TRUSTEES REPORT STRucfuRE, GOVERNANCE AND MANAGEMENT Icont.) PublTC 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 accorda nce with average earnings. Investment Policy Aside from retaining an adequate reserves each year most of the charitrfs funds are to be spent in the short term. The cha rity has therefore not considered any plans for long term investments. Recrultment and Appointment of Management Commlttee 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 charitv. Related Partles The cha rity set out its related party transaction in note 16 of the financial statements, '#1 1...7JT Mussy puddles event Nishkam Nursery Provision Nishkam Nursery- Full Day Care Nursery- Birmingham Nishkam Nursery Wolverhampton Full Day Care Nursery In September 2009 GNNET opened a Full Day Care Nursery at I Soho Road, Handsworth. During a six In September 2015 GNNET opened a Full Day Care month period from March 2009 skilled volunteers and Nursery in Wolverhampton following the success of the craftsman renovated the building in record time. Nishkam primary. Currently the Nursery utilises the Originally bu ilt in 1865 as a private residence it was first premises of the Nishkam Primary School which has the used as a War time Nursery in 1944. capacity given it is growing incrementally yea r 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 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 This Nursery is now providing much needed faith which had previously been left empty and unused. inspired education and high quality child care for 34 local young children, quality employment and training The popularity and reputation of the Nursery for local people, within great community continues, as it is oversubscribed and the number of atmosphere. children wishing to register in September 2017 was well in excess of the current capacity. Nishkam Nursery Birmingham and Nishkam Nusrey in Wolverhampton have both received good Ofsted ratings at the last inspections. Currently the Nursery utilises the dining facilities of the N ishkam Primary School wh ich 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. strong leodership ond effective 5upportfor staff s professionol development have enabled the setting to mointoin its good-quality service Since the last inspection. Nlshkam 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 fa milies and children aged 6 weeks to 5 years from 8am to 6pm. Pupil numbers by Nursery and Class Birmingham Wolverhampton Leeds Baby 22 Toddler 35 Preschool 47 60 22 TOTAL 104 69 22 GURU NANAK NISHKAM EDUCATION TRUST Report of the Trustees for the year ended 31 March 2024 STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Guru Nanak Nishkam EducationTrust for the purposes of company lawl are responsible for preparingthe Report of the Trustees and the financial statements in accordance with 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 Company law require5the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitablecompanyfor that period. In preparing those financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charity SORP; make judgements and estimates that a￿ 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 inappropriateto presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable companyand to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking reasonable step5 forthe prevention and 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 auditor5 are unaware; and the trustees have taken all steps that they ought to have tsken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, BSN Chartered Accountants, will be proposed for re-appointment at the forthcoming An- nual General Meeting. Report of the trustees, incorporatinga strategic report, approved by order of the board of trustees, as the company directors, on .30.Qctaber.2024. and signed on the board's behalf by: •QL.:I Bh31 Sahib, Bhai (Prof) MohinderSingh Ahluwalia, KSG, OBE, Chairman Guru Nanak Nishkam Education Trust Company Limited by Guarantee Independent Auditor's Report to the Members of Guru Nanak Nishkam Education Trust Year ended 31 March 2024 Opinion We have audited the financial statements of Guru Nanak Nishkam Education Trust (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, including Its income and expenditure, for the year then ended; have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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. Concluslons r•lating 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 charity'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. Guru Nanak Nishkam Education Trust Company Limited by Guarantee Independent Auditor's Report to the Members of Guru Nanak Nishkam Education Trust (contlnued) Year ended 31 March 2024 Other information The other information comprises the infomiation included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent othemise 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Oplnlons on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, report for the financial year for which the financial ststements are prepared is consistent with the financial statements., and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exception In the light of the knowledge and understsnding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. 10 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Independent Auditor's Report to the Members of Guru Nanak Nishkam Education Trust{continuedJ Year ended 31 March 2024 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so. Auditorfs responsibilities for the audlt of tha 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 an auditor's report 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 a￿ayS 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities that result from fraud might be inherently more difficult than irregularities that result from error, which gives rise to a risk of material misstatement. We are of the opinion that the planned audit approach, the documentation and interrogation of the entity's controls means that the audit procedures carried oul were capable of detecting irregularities, including fraud. We have also reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing joumal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations and have reviewed correspondence with regulatory bodies as part of our audit procedures. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 11 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Independent Auditor's Report to the Members of Guru Nanak Nishkam Education Trust(contlnued) Year ended 31 March 2024 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence obtained. whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However, future events or conditions may cause the charity to cease to continue as a going concem. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solety to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Hannah Justice FCA FCCA (Senior Statutory Auditor) For and on behalf of BSN Associates Limited Chartered accountants & statutory auditor 3B Swallowfield Coutyard Wolverhampton Road Oldbury West Midlands B69 2JG ockn)￿ 2014 12 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 Restricted funds Total funds Total funds 2023 Unrestricted funds Income and endowments Donations and legacies Charitable activities Investment income Other income 50,800 50,800 989,367 46,741 1,500 39,400 938,225 46,741 989,367 46,741 1,500 Total income 1,037.608 50,800 1,088,408 1,024,366 Expenditure Expenditure on charitable activities Total expenditure 9,10 1,098,088 1,098,088 96,000 96,000 1,194,088 1,097,096 1,194,088 1,097,096 Net expendlture and net movement in funds 160,480) (45,200) (105,680) (72,7301 Reconciliation of funds Total funds brought forward as previousty reported Prior year adjustment Total funds brought forward as restated Total funds carried forward 364,376 577,238 941,614 391,906 622,438 364,376 577,238 532,038 941,614 835,934 1,014,344 303,896 941,614 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 16 to 28 fomi part of these financlal statements. 13 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Statement of Financial Position 31 March 2024 2024 2023 (rèstated) Note Fixed assets Tangible fixed assets Investments 16 17 704,983 773,002 704.984 773.003 Current asset5 Debtors Cash at bank and in hand 19 83,832 104,426 57,933 156.166 188.258 214,099 Creditors. amounts falling due within one year 20 57,308 45.488 Net current assets 130,950 168,611 Total assets less current liabilities 835,934 941,614 Net assels 835,934 941,614 Funds of the charlty Restricted funds Unrestricted funds 532,038 303,896 577.238 364.376 Total charity funds 22 835.934 941,614 These financial statements were approved by the board of trustees and authorised for issue on 3Q.Q.Glg.kor.2.Q24 and are signed on behalf of the board by: Bhai Sahib. Bhai (Prof) Mohinder Singh Ahluwalia. KSG. OBE. Chaimian Trustee The notes on pages 16 to 28 fomi part of these financial statements. 14 Guru Nanak Nishkam Education Trust Company Limited by Guarantse Statement of Cash Flows Year ended 31 March 2024 2024 2023 (restated) Cash flows from operating activities Net expenditure (105,680) (72,730} Adjustments for Depreciation of tangible fixed assets Dividends, interest and rents from investments Accrued expenses 69,230 (46,741) 1,718 66,536 146,741) Changes in.. Trade and other debtors Trade and other creditors (25,899) 10,102 {12,7961 6,083 {59,648) {59,648) Cash generated trom operations Net cash used in operating activities (97,270) (97,270) Cash flows from Investlng act5vitles Dividends, interest and rents from investments Purchase of tangible assets Net cash from investing activities 46,741 (1,211) 45,530 46,741 (13,742) 32,999 Net decrease In cash and cash equlvalents Cash and cash equivalents at beglnnlng of year Cash and cash equivalents at end of year 151,7401 156,166 (26,649) 182,815 156,166 104,426 The notes on pages 16 to 28 fomi part of these financial statements. 15 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Ststsments Year ended 31 March 2024 General information The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 18-20 Soho Road, Handsworth. Birmingham, B219BH. statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland., the 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) (Charities SORP IFRS 102)) and the Companies Act 2006. Accounting policies Basis of preparatlon The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. Golng concern There are no material uncertainties about the charity's ability to continue. Judgements and key sources of estlmatlon uncertalnty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Income tax The charity is exempt from corporation tax on its charitable activities. Fund accountlng Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Restricted funds are subjected to restrictions on their expenditure declared by the donor or when funds are raised for particular restricted purposes. 16 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Accountlng policies (continued) Incoming resources All incoming resources are included in the statement of fjnancial activities when entitlement has passed to the charity., it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income.. income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliabty, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of seNices is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportj'oned to charitable activities. other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned be￿een the activities they contribute to on a reasonable, justifiable and consistent basis. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. 17 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statsments (contlnued) Year ended 31 March 2024 Accounting policies (continued) Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciation Depreciation is calcuLqted so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows.. Short leasehold property Fixtures and fittings 40/0 Straight line 25°/0 Straight line Investments Unlisted equity investments are initially recorded at cost, and subsequentty measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment. Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure. Investments In associate8 Investments in associates accounted for in accordance with the cost rnodel are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Ithere it is impracticable to measure fair value reliabty without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition. Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing. when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 18 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 Accounting policies {continued) Impairment of fixed assets (continu For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected lo benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. Flnancial instruments A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequenty measured at the transaction price less any impairment or other consideration expected to be paid or received and not discounted. Debt instruments are subsequentty measured at amortised cost. Defined ¢ontribut5on plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Limited by guarantee The charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. Donations and legacies Restricted Total Funds Funds 2024 Restricted Total Funds Funds 2023 (reslated) Grants Educational research venture 50,800 50,800 39,400 39,400 19 Guru Nanak Nishkam Education Trust Company Limited by Guarantse Notes to the Financial Statements (conlinu8dJ Year ended 31 March 2024 Charitable activities Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 (r8stated) Nursery fees - parental contrtibution Nursery fees - early years govemment fundin9 441,303 441,303 456,419 456,419 548,064 548,064 481,806 938,225 481,806 989,367 989,367 938,225 Investment Income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 (restated) Rents receivable 46,741 46,741 46,741 46,741 Other income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 (restated) Other income 1,500 1,500 Expenditure on charltable activities by fund type Unrestricted Funds Restricted Total Funds Funds 2024 Provision of nursery care Support costs 1,021,523 76,565 96,000 1,117,523 76,565 1,098,088 96,000 1,194,088 Unrestricted Funds Restricted Total Funds Funds 2023 (restatod) Provision of nursery care Support costs 932,679 79,817 84,600 1,017,279 79,817 1,012,496 84,600 1,097,096 20 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statsments fcondnue Year ended 31 March 2024 10. Expenditure on charitable actlvltles by activty type Activities undertaken directly Support costs Total funds 2024 Total fund 2023 Provision of nursery care Governance costs 1,117,523 69.231 7.334 1,186,754 7,334 1,194,088 1,089,356 7,740 1,117,523 76.565 1,097,096 11. Anatysls of support costs Support costs Nursery Care Total 2024 Total 2023 Staff costs Premises Other costs 22,490 46,741 22,490 46,741 22,518 46,741 2,818 69,231 69,231 72,077 12. Net expenditure Net expenditure is ststed after chargingl(crediting)= 2024 2023 (restated) Depreciation of tsngible fixed assets 69,230 66,536 13. AuditorJ remuneration 2024 2023 (restatedj Fees payable for the audit of the financial statements 5,100 4,752 14. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2024 2023 {re5tated) Wages and salaries Social security costs Employer contributions to pension plans 678,145 49,143 13,412 589,970 32,811 11,011 740,700 633,792 21 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2024 14. Staff costs (continued) The average head count of employees during the year was 35 (2023: 32). The average number of frjll-time equivalent employees during the year is analysed as follows.. 2024 2023 No. Nursery stsff 35 32 No employee received employee benefits of more than £60,000 during the year12023'. Nil). 15. Trustee remuneration and expenses There were no trustees, remuneration or other benefits for the year ended 31 March 202412023 - £Nil). There were no trustees, expenses paid for the year ended 31 March 202412023 - £Nil). 16. Tangible fixed assets Short leasehold property Fixtures and mprovements fittings Total Cost At 1 April 2023 (as restated) Additions 1.471,153 48,425 1,211 49,636 1,519,578 1,211 1,520,789 At 31 March 2024 1,471,153 Depreclatlon At 1 April 2023 Charge for the year At 31 March 2024 725,800 58,846 20,776 10,384 746, 576 69,230 784,646 31,160 815,806 Carrylng amount At 31 March 2024 686,507 745,353 18,476 704,983 773,002 At 31 March 2023 27,649 22 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements fcontinuedj Year ended 31 March 2024 17. Investments Other investments Cost or valuation At 1 April 2023 Additions At 31 March 2024 Impalrment At 1 April 2023 and 31 March 2024 Carrylng amount At 31 March 2024 At 31 March 2023 All investments shown above are held at valuation. 18. Investment entities Subsidiaries and other Investments Percentage of Class of share shares held Other significant holdings Nishkam Security Limited Ordinary 25 Nishkam Security Limited is a company registered in England and Wales. The company is a security provider and its registered office is 18-20 Soho Road Handsworth, Birmingham, West Midlands, B21 9BH. 19. Debtors 2024 2023 (restated) Trade debtors Prepayments and accrued income other debtors 60,685 15,609 7,538 27,718 14,158 16,057 57,933 83,832 23 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (conlinuedj Year ended 31 March 2024 20. Creditors: amounts falling due within one year 2024 2023 (restated) Trade creditors Amounts owed to group undertakings Accruals and deferred income Social security and other taxes Other creditors 17,799 2,631 19,598 13,467 3,813 14,409 2,892 10,764 12,459 4,964 57,308 45,488 21. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £13,412 (2023.. £11,011). 22. Anatysis of charitable funds Unrestrlcted funds At Prior year 31 March 202 Income Expenditure adjustments At 1 April 2023 Gener81 funds 364,376 1,037,608 (1,098,088) 303,896 At Prior year 31 March 202 Income Expenditure adjustments At 1 April 2022 General funds 391,906 984,966 {1,012,4961 364,376 Restrlcted funds At Prior year 31 March 202 Income Expenditu￿ adjustments At 1 April 2023 Restricted Funds 577,238 50.800 {96,000) 532,038 At Prior year 31 March 202 Income Expenditure adjustments At 1 April 2022 Restricted Funds 39,400 (84,600) 622,438 577,238 24 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 22. Analysis of charitable funds (Continued) Restricted funds relate to grants and donations received that are to be used towards improvements. These costs have been capitalised and the depreciation in relation to this is being allocated to the fund each year. 23. Analysis of net assets between funds Unrestricted Funds Restricted Total Funds Funds 2024 Tangible fixed assets Investments Current assets Creditors less than 1 year Net assets 172,945 532,038 704,983 188,258 (57,308) 303,896 188,258 157,308) 835,934 532,038 Unrestricted Funds Restricted Total Funds Funds 2023 Tangible fixed assets Investments Current assets Creditors less than 1 year Net assets 195,764 577,238 773,002 214,099 (45.488) 364,376 214,099 145,488) 941,614 577,238 24. Prlor period adjustment During the year the following adjustments have been identified to correct errors andlor amend accounting policies which have been reflected as prior year adjustments. Grants and donations received in prior years for capitsl spend had been incorrectly deducted from fixed assets. This income should have been recognised in restricted funds as the income recognition criteria had been met with the associated expenditure allocated to the fund each year. The net impact was as follows" 2022 Increase fixed assets and restricted funds 622,438 2023 Increase fixed assets and restricted funds Net reduction in deficit 577,238 45,200 25 Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (contlnuedj Year ended 31 March 2024 25. Financial instruments Financial assets held by the charity are cash at bank. trade and other debtors. Financial liabilities hetd by the charity are trade and other creditors. 26. Analysis of changes in net debt At At 1 Apr 2023 Cash flows 31 Mar 2024 Cash at bank and in hand 156,166 (51,740) 104,426 27. Operating lease commltments The total future minimum lease payments under non