REGISTERED CHARITY NUMBER.. 1102555 REGISTERED COMPANY NUMBER.. 04614219 GNNET GURU NANAK NISHKAM EDUCATION TRUST ANNUAL REPORT OF THE TRUSTEES & FINANCIAL STATEMENTS 31 MARCH 2025
CONTENTS Pages Report of the Trustees 4t07 Statement of Trustees Responsibilities Report of the Independent Auditors 9t012 Statement of Financial Activities 13 Statement of Financial Position 14 Statement of Cash Flows 15 Notes to the Financial Statements 16to29
111 li ij. Bhai Sahib Ji with Children and staff from Nishkam Nursery during visit to London Westminster to celebrate Vaisakhi in the Houses of Parliament, April 2024
GNNET Guru Nanak Nishkam Education Trust IGNNET) 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 IBirminghaml 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 3. 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 Ioc31 GNNSJ has a long established and clearly focussed communities to be self sufficient programme communitv 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 leve15 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 and supportive communities 9. Contributing to the Government's social action initiatives such as the 'Big Society, agenda, National Citi2en Service and International Citizen Service. 10. Education is the best investment for the future, it facilitates engagement and partnerships with other or8anisations promotes Eduratlon 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 humanlspiritual values in young children to nurture them as good human beings. In a world so troubled by ignorance, misconceptions and hostilitie5 based on religious identity,. the development of a sound model for interfaith education is imperative. 11, 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 artivities 2025. The Trustees have adopted the provisions of The principal activities during 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 Standard applicable in the UK and Republic of Ireland IFRS The following is a summary of the education initiatives: 1021 leffettive l January 2019). The groundwork 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-subscri bed. 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 DETAILS Registered Company number 04614219 IEngland and Wales) Registered Charity number 1102555 Prlnclpal Address 18 -20 Soho Road Handsworth Birmingham B2198H Trustees 8hai Sahib, 8hai (Profl Mohinder Singh Ahluwalia. KSG, OBE, Chairman Mr Jarnail Singh Bhinder Mr Parvinder Singh GNNET has contributed to the following GNNSJ education endeavours Establishing Lectureship at University of Birmingham of MPhil & PhD in Sikh Studies12000-20051 Post-Doctoral Research on Religion, Civil Society and the United Nation5 Religions for Peace Building initiative. Supporting Nishkam School Trust in the development of 4 Sikh-ethos multi-faith 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 Religions and Peace lectureships Audltors BSN Chartered Accountants 38 Swallowfield Courtyard Wolverhampton Road Oldbury West Midlands B69 21G STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document The charity is controlled by its governing document, a deed of trust, and constitutes a charitable trust. Risk management The Trustees attively 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 systerns, will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other Principal Funding Source operation31 and business risks faced by the Charity and The Charities principal funding Source arrives from confirm that they have established system5 to mitigate government funding for education and childcare. the risks. FINANCIAL REVIEW Reserves policy The present level of funding is adequate to support the continuation of the current activities. Transactions and financial position The Statement of Financial Activities shows net surplus of £38,848 for the year as the new Nishkam Nursery Leeds establishes itself. The Balance Sheet shows total reserves of £874,782. 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 STRUCTURE, GOVERNANCE AND MANAGEMENT (Cont.) Public benefit GNNET carries out a wide range of attivities 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 Pollcy Aside from retaining an adequate reserves each year most of the charitls 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 Mana8ement 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 Meetin& 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 27 of the financial statements. Kirtan class {11,. Fire station event Irl
Nishkam Nursery Provision Nishkam Nursery- Full Day Care Nursery- Birmingham Nishkam Nursery- Full Day Care-wolverhampton In September 2009 GNNET opened a Full Day Care In September 2015 GNNET opened a Full Day Care Nursery at I Soho Road, Handsworth. During a six- Nursery in Wolverhampton following the success of the month period from March 2009 skilled volunteers and Nishkam primary. Currently the Nursery utilises the craftsman renovated the building in record time. premises of the Nishkam Primary School which has the Originally built in 1865 as a private residence it was first capacity given it is growing incrementally year on year. used 35 a War time Nursery in 1944. During a three-month period from June 2015 skilled volunteers renovated the nursery area in record time Thi5 thriving Nursery is now providing much needed for the opening in September 2015. faith inspired education and high quality childcare for local young children. quality employment and training This Nursery is now providing much needed faith for local people, within a greatly renovated building inspired education and high quality childcare for 34 which had previously been left empty and unused. local young children, quality employment and training for local people, within a great community atmosphere. Given the continuin8 popularity and reputation of the Nursery, being oversubscribed. with the number of children wishing to register being in excess of capacity Nishkam Nursery Birmingham and Nishkam N ursery in for a number of years, a new building was sought. Wolverhampton have both received good Ofsted GNNSJ volunteers tirelessly contributed to the ratings at the last inspections. refurbishment of another Grade 11 listed premises nearby to the original location, as well as substantial Strong leadership and effective supportforstoffs groundworks to create an elevated much expanded profe55ional development hove enabled the setting to playground and undercover parking area. mointoin it5 good-quolity service since the last inspection. The New Nishkam Nursery building was opened to the Sangat with a Keertan program held in the newly Nishkam Nursery- Full Day Care Nursery- Leeds renovated building. Hundreds of Sangat members came together to mark this momentous occasion. The building offers more space for enhanced learning activities. As well as a much larger outdoor play area and new kitchen dinin8 facilities. 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 Wolverhampton Leeds Baby 37 Toddler 31 21 io Preschool 55 39 17 TOTAL 123 66 27
GURU NANAK NISHKAM EDUCATION TRUST Report of the Trustees for the year ended 31 March 2025 STATEMENT OF TRUSTEES RESPONSIBIUTIES The trustees (who are also the directors of Guru Nanak Nishkam Education Trust for the purposes of company law} are responsible for preparing the Report of the Trustees and the financial statements in accordance with applic3ble 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 Ire13nd" Company law requiies the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charttable company and of the incoming resources and application of resources, including the income and expenditure, of the tharitable company for 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 are reasonable and prudent; state whether applicable accounting stsndards 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 charltable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the tinancial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible foi safeguarding the assets of the charitable company and hence for taking reasonable steps for the 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 auditors are unaware. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audlt information and to establish that the auditors are aware of that information. AUDITORS The auditors. B5N Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporating a strategic report, approved by order of the board of trustees. as the company direttors, on ..&.Q.GlotJor.ZQ2&.. and signed on the board's behalf by: Bhai Sahib, Bhai {Profl Mohinder Singh 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 2025 Oplnlon W8 have audited the financial ststements of Guru Nanak Nishkam Education Trust {the 'charitable company,) for the year ended 31 March 2025 which comprise the statement of financial activities (including income and expenditure a¢count), 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 Practi). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; have been prepared in accordance Vlith the requirements of the Companies Act 2006. 8asls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UKI) 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 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 Ethi1 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 relatlng to golng concern In auditing the financial statements, V 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 perfonned, we have not identrfied any material uncertainties relaling to events or conditions that, individually or colledively, may cast significant doubt on the charitable company's ability to continue as a going concem 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 concem 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(continued) Year ended 31 March 2025 Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other infomiation. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otheISe explicitly stated in our report. we do not express any fomi 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 infomiation. If. based on the work we have performed, we conclude that there is a material misstatement of this other infomation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescrlbed 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, leh includes the director's report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements.. and the director's r8POrt included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the lighl of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identffied material misstatements in the trustees, report. We have nothing to report in respect of the foll0vng 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 retums adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement Vth 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 2025 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, 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 thal 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 thal are free from material misstaternent. 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 concem basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, Of have no realistic altemative but to do so. Audltor's responslbllltles for the audlt of the flnanclal 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 audil conducted in accordance with ISAS (UK) will ahmays detect a material misstatement when it exists Misstatements can anse 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. IegUlarities, 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 Ifregularilies, 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 out 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 journal entries and other adjustments for appropriateness. and evalualing the business rationale of significant transactions outside the nomial course of busine55. 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 perfonn 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 Auditorfs Report to the Members of Guru Nanak Nishkam Education Trust (continued) Year ended 31 March 2025 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 intemal 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 charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial slatements 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 auditor's report. However, future events or conditions may cause the charitable company 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 govemance 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 solely to the charitable company'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 charitable company'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 pemitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report. or for the opinions we have formed. jghts F(Jb f CQ4 Hannah Justice FCA FCCA (Senior Statutory Auditor) For and on behalf of BSN Associates Limited Chartered accountants & statutory auditor 3B Swallowfield Courtyard Wolverhampton Road Oldbury West Midlands B89 2JG Dated.. ts OLL-c)k)ef ZOL r 12
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2025 2025 Restricted funds Total funds Total funds 2024 Unrestricted funds Note Income and endowments Donations and legacies Charitable activities Investment income Other income 5.480 1,302,943 47,282 2,150 17,610 23,090 1,302.943 47.282 2.150 50,800 989,367 46,741 1,500 Total Income 1.357.855 17,610 1,375,465 1,088,408 Expenditure Expenditure on charitable activities Total expendlture 9,10 1,172,577 164,040 1,336,617 1,194,088 1,172,577 164,040 1,336,617 1.194,088 Net Incomel(expendlture) 185,278 1146,430) 38,848 (105,6801 Transfers beeen funds (30) 30 Net movement In funds 185.248 (146,400) 38,848 {105.680} Reconclllatlon of funds Total ftjnds brought foThvard Totsl funds carrled forward 303.896 532.038 835,934 941,614 489,144 385,638 874,782 835,934 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 29 forni partof these financial statements. 13
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Statement of Financial Position 31 March 2025 2025 2024 Note Fixed assets Tangible fixed assets Investments 16 17 548,435 704.983 548.436 704.984 Current assets Debtors Cash at bank and in hand 19 32,(E3 326.441 83.832 104,426 358.504 188.258 Creditors: amounts falling due wlthin one year Net current assets 20 32.158 57,308 326.346 130,950 Total assets less current liabilities 874,782 835,934 Nèt assets 874,782 835,934 Funds of the charlty Restricted funds Unrestricted fvnds 385.638 489,144 532.038 303,896 Total charlty funds 22 874,782 835,934 These financial statements were approved by the board of trustees and authorised for issue on 6 October 2025 . and are signed on behalf oflh8 board by.. Bhai Sahib (Profj Mohinder Singh Ahluwalia, KSG, OBE Chairman The notes on pages 16 to 29 forn) part of these financial statements. 14
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2025 2025 2024 Cash flows from operating activlties Net in¢omel(expenditure) 38,848 {105,680) Adjustments for Depreciation of tangible fixed assets Dividends, interest and rents from investments Other interest receivable and similar income Accrued {income)lexpenses 206,514 146,741) (5411 (14,498) 69,230 146,741) 1,718 Changes in.. Trade and other debtors Trade and olher creditors 51,789 (10.652) 224,699 (25,899) 10,102 Cash generated from operations (97,2701 Interest received 541 Net cash froml(used in) operating activities 225,240 (97,2701 Cash flows from Investlng actlvltles Dividends, interest and rents from investments Purchase of tangible assets Net cash (used in)fftom investing activities 46,741 (49.966) (3,225) 46,741 (1,2111 45,530 Net Increasel(decreasel in cash and cash equlvalents Cash and cash equlvalents at beglnnlng of year Cash and cash equlvalents at end of year 222,015 104.426 {51,740) 156,166 326,441 104,426 The notes on pages 16 to 29 fomi part of these financial ststements. 15
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2025 General inforniatlon 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, Bimiingham, 821 98H. 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 IFRS 1021 (Charities SORP (FRS 102)) and the Compani8s Act 2006. Accountlng pollcles Basls 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 judgemenls are continually reviewed and are based on experience and other factors, including expectalions 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 fund5 are raised for particular restricted purposes. 16
Guru Nanak Nishkam Education Trust Company Llmited by Guarantee Notes to the Financial Statements (contlnueo) Year ended 31 March 2025 Accounting policles (¢onlinuedJ Incomlng resources All incoming resources are included in the statement of financial 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 reliably, 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 reiVed if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contrads for the supply of services is recognised with the delivery of the conlracted 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 dassified 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 indud8s 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 govemance of the charity apportioned 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 resour. Dired costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned beeen the activities they contribute to on a reasonable. justrfiable and consistent basis. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefil of lease inntiveS 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 Statements (continued) Year ended 31 March 2025 Accountlng policles {continu8d) 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. Depreclatlon Depreciation is calculated 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 propety Fixtures and fittings 40A straight line or life of lease 250k straight line Investments Unlisted equity investments are initially recorded at cost, and subsequently 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 assoclates Investments in associales accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associales accounted for in accordance wilh the fair value model are initially recorded al the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably 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. Impalrnient 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. Vthere 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 impaimient testing. when it is not possible to estimate the recoverable arnount of an individual asset, an estimate is made of the recoverable amount of the ¢ash-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 infiows from other assets or groups of assets. 18
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Ststements (Continued) Year ended 31 March 2025 Accounting policies (¢onllftued) Impaimient of flxed assets (continu For impaimient 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 to 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 transadion, 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 cuent liabilities are subsequently measured at the transaction price less any impairment or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Deflned contrlbutlon 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 unwnding of the discount is recognised as an expense in the period in v4hich it arises. Llmlted by guarante• 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. Donatlons and legacles Unrestricted Funds Restricted Total Funds Fund5 2025 Donations Donation of services 5,480 5,480 19
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Ststements (continuedj Year ended 31 March 2025 Donations and legacies (continued) Unrestricted Funds Restricted Total Funds Funds 2025 Grants Educational research venture 17.610 17,610 5,480 17,610 23,090 Unrestricted Funds Restricted Total Funds Funds 2024 Donations Donation of services Grants Educational research venture 50.800 50,800 50,800 50,800 Charltable actlvltles Unrestricted Total Funds Unrestricted Total Funds Funds 2025 Funds 2024 Nursery fees- parental contribution Nursery fees- earfy years government funding 400,639 400,639 441,303 441,303 902,304 902,304 548,064 548,064 1,302,943 1.302,943 989,367 989,367 Investment Income Unrestricted Totsl Funds Unrestricted Total Funds Funds 2025 Funds 2024 Rents receivable Other interest receivable 46.741 541 46,741 541 46,741 46,741 47,282 47,282 46,741 46,741 Other Income Unrestricted Total Funds Unrestricted Total Funds Funds 2025 Funds 2024 Other income 2,150 2,150 1,500 1.500 20
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (Coniinued) Year ended 31 March 2025 Expenditure on charilable activities by fund type Unrestricted Funds Restricted Total Funds Funds 202S Provision of nursery care Support costs 1,104,008 68,569 164,040 1,268,048 68,569 1,172,577 164,040 1,336,817 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 10. Expenditure on charltable actlvltles by actlvlty type Activities undertaken directly Support costs Total funds 2026 Tolal fund 2024 Provision of nursery care Govemance costs 1,268,048 61,823 6,746 1,329,871 6,746 1,186,754 7,334 1,268.048 68,569 1,336,617 1,194,088 11. Analysls of support costs Support costs - Nursery Care Total 2025 Total 2024 Staff costs Premises General office 7.548 46.741 7.534 7,548 46,741 7,534 22,490 46,741 61,823 61,823 69,231 12. Nel Incomellexpenditure) Nel incomel{expenditure) is stated after ¢hargingl(crediting)= 2025 2024 Depreciation of tangible fixed assets 206,514 69,230 21
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2025 13. Auditors remuneration 2025 2024 Fees payable for the audit of the financial statements 5,100 5,100 14. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2025 2024 Wages and salaries Social security costs Employer contributions to pension plans 717.923 57,965 15.029 678,145 49,143 13,412 790.917 740,700 The average head count of employees during the year was 37 (2024.. 35). The average number of full-time equivalent employees during the year is analysed as follows.. 2025 No. 2024 No. Nursery staff 37 35 No employee received employee benefits of more than £60,000 during the year (2024.. Nil). 15. Trustee remuneratlon and expenses There were no trustees, remuneration or other benefits for the year ended 31 March 2025 {2024 - £Nil). There were no trustees, expenses paid for the year ended 31 March 2025 (2024 - £Nil). 22
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2025 16. Tangible fixed assets Short leasehold property Fixtures and mprovements fittings Total Cost At 1 April 2024 Additions Disposals At 31 March 2025 1.471,153 49,636 49,966 128,334) 71.268 1,520,789 49,966 {358,200) 1,212,555 (329,866) 1.141,287 Depreclatlon At 1 April 2024 Charge for the year Disposals 784,846 193,267 (329,866) 648,047 31,160 815.806 13,247 206.514 128.3341 {358.200) 16,073 664,120 At 31 March 2025 Carrylng amount At 31 March 2025 493,240 55,195 548,435 At 31 March 2024 686,507 18,476 704,983 17. Inv8Stments Other Investmants Cost or valuatlon At 1 April 2024 Additions At 31 March 2025 Impalrnient At 1 Aprll 2024 and 31 March 2025 Carrying amount At 31 March 2025 At 31 March 2024 All investments shown above are held at valuation. 23
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2025 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, B2198H. 19. Debtors 2025 2024 Trade debtors Prepayments and accrued income other debtors 25,980 4,189 1,894 60,685 15,609 7,538 32,063 83,832 20. Credltors: amounts falllng due wlthln one year 202S 2024 Trade creditors Amounts owed to group undertakings Accruals and deferred income Social security and other taxes Other creditors 11,748 17,799 2,631 19,598 13,467 3,813 5,100 13,541 1,769 32,158 57,308 21. Penslons and other post retlrement beneflts Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £15,029 (2024.. £13,412). 24
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (conlinued) Year ended 31 March 2025 22. Analysls of charitable funds Unrestricted funds At 1 April 2024 At Income Expenditure Transfers 31 March 2025 General funds 303,896 1,357,855 (1,172,577) (30) 489,144 At 1 April 2023 At Income Expenditure Transfers 31 March 2024 General funds 364.378 1.037.608 (1,098,088) 303,896 Restrlcted funds At 1 April 2024 At Transfers 31 March 2025 Income Expenditure Property improvements Fetzer fund 532,038 1146.400) (17,640} (164,0401 385,638 17,610 30 532,038 17,610 30 385,638 At 1 April 2023 At Transfers 31 March 2024 Income Expenditure Propety improvements Fetzer fund 577,238 (45,200) (50,800) (96,000) 532,038 50.800 577,238 50,800 532,038 Restricted funds relate to grants and donations received that are to be used towards improvements. These costs have been capitalised and the deprecialion in relation to this is being allocated lo the fund each year. The Fetzer fund were funds received for educational research which has been fully spent in the year. 25
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2025 23. Analysls of net assets between funds Unrestricted Funds Restricted Total Funds Funds 2025 Tangible fixed assets Investments Current assets Creditors less than 1 year Net assets 162,797 385,638 548,435 358,504 (32.1581 489,144 358.504 (32,158) 874,782 385,638 Unrestricted Funds Restricted Total Funds Funds 2024 Tangible fixed assets Investments Cuent assets Creditors less than 1 year Net assets 172.945 532.038 704,983 188.258 (57,308) 303,896 188,258 (57,308) 835,934 532.038 24. Flnanclal Instruments Financial assets held by the charity are cash at bank, trade and other debtors. Financial liabilities held by the charity are trade and other creditors. 26. Analysls of changes In net debt At At 1 Apr 2024 Cash flows 31 Mar 2026 Cash at bank and in hand Debt due within one year 104.426 (2,6311 101,795 222,015 2,631 326,441 224,648 328,441 26. Operatlng lease commltments The total ftjture minimum lease payments under non-cancellable operating leases are as follows.. 2025 2024 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 78,781 286,124 277,116 103,381 347,324 343,897 642,021 794,602 26
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Ststements (conbnued) Year ended 31 March 2025 26. Operating lease commitments (continued) Part of the operating lease commitment relates to the lease of &7 Soho Road from Guru Nanak Nishkam Sewak Jatha {Bimiingham) UK. The premises are sublet to Nishkam School Trust for the same annual rent. 27
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (contlnueo) Year ended 31 March 2025 27. Related parties During the year the following connected parties and transactions were identified.. Guru Nanak Nlshkam Sewak Jatha Blrmlngham (UK) A charitable company in which trustees Mohinder Singh Ahluwalia and J Singh Bhinder were trustees and directors. Guru Nanak Nishkam Education Trust holds a leasehold interest for the freehold of 5 to 7 Soho Road held by Guru Nanak Nishkam Sewak Jatha (Birminghaml UK. Guru Nanak Nlshkam Sewak Jatha Leeds A sister organisation of Guru Nanak Nishkam Sewak Jatha (Bimingham) UK Marg Sat Santokh Manufacturers Llmlted A company in which the trustees Mohinder Singh Ahluwalia and J Singh Bhinder are directors. Nlshkam Clvlc Assoclatlon A charitable company in which the trustees, P Singh Jhutti and J Singh Bhinder were trustees and directors Bhai Sahib Mohinder Singh Ahluwalia is a Patron. Nlshkam Healthcare Trust A charity and its subsidiaries which share a common subsidiary with Guru Nanak Nishkam Education Trust in Nishkam Security Limited and in which Bhai Sahib Mohinder Sin9h Ahluwalia is a Patron. Nlshkam Schools Multl Academy Trust A charily in which the trustee Mohinder Sin9h Ahluwalia was the patron. Nlshkam Securlty Llmlted A 25°/0 owned subsidiary of Guru Nanak Nishkam Education Trust. Sangat Trust A Gharitable company in which the trustee Mohinder Singh Ahluwalia has been a truslee. During the year the followng related paty transactions occurred 2025 2024 Guru Nanak Nishkam Sewak Jatha Binningham Rent paid Nishkam Schools Multi Academy TNst Rent paid Recharged utilities Provision of lunches Rent Received Guru Nanak Nishkam Sewak Jatha Leeds Rent paid and utilities Nishkam Security Limited Purchases of services 71,341 71,341 12,000 24,797 6,000 46.741 12,000 11,444 6,074 46,741 29,745 26,720 16,440 12,905 28
Guru Nanak Nishkam Education Trust Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2025 At the year end the charity owed and was owed the following sums to related parties 2025 2024 Nishkam Schools Multi Academy Trust Debtor Creditor Nishkam Security Limited Creditor Guru Nanak Nishkam Sewak Jatha Leeds Creditor 7,538 2,632 4,364 1,370 970 28. Controlllng party The Trustees consider that the charity is jointly controlled by the Trustees and there is no ultimate controlling party. 29
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