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2020-12-31-accounts

REGISTERED COMPANY NUMBER: 05622994 (England and Wales) REGISTERED CHARITY NUMBER: 1116612

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 December 2020

for

NES FOUNDATION LTD

Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

NES FOUNDATION LTD

Contents of the Financial Statements for the Year Ended 31 December 2020

Page
Report of the Trustees 1 to 2
Report of the Independent Auditors 3 to 5
Statement of Financial Activities 6
Balance Sheet 7
Cash Flow Statement 8
Notes to the Cash Flow Statement 9
Notes to the Financial Statements 10 to 17
Detailed Statement of Financial Activities 18

NES FOUNDATION LTD

Report of the Trustees for the Year Ended 31 December 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The main objects of the charity are the relief of poverty, furtherance of the Jewish religious faith and education. This has been achieved by granting funds to UK Charities, who fulfill the above criteria .

Public benefit

In setting the charity's objectives the Trustees have given careful consideration to the Charity Commission's guidance on public benefit.

STRATEGIC REPORT

Reserves policy

The present level of reserves is adequate to support the continuation of our activities and the trustees consider the financial position of the Charity to be satisfactory.

The outbreak of the COVID-19 during 2020 has presented risks which are beyond the control of the charity and represents uncertainty to the revenue and valuation of its assets which cannot presently be quantified. The trustees are able to control the charity's grant making and as such the trustees believe the charity will continue as a going concern.

The statement of Financial Activities shows net surplus for the year of £28,680 (2019: £46,573 net deficit) and our reserves stand at £7,279,781 (2019: £7,251,101) in total.

Future plans

There are no significant future developments to report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Risk management

The Trustees have examined the main investment risks to which the Charity is exposed to and is satisfied that systems are in place to mitigate such risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05622994 (England and Wales)

Registered Charity number

1116612

Registered office

Trustees

Mr S Morgenstern Mr N Sheinfeld Mrs R Sheinfeld

Company Secretary

Mrs R Morgenstern

Senior Statutory Auditor

Mr A Heller

Page 1

NES FOUNDATION LTD

Report of the Trustees for the Year Ended 31 December 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Nes Foundation Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the 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 charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial 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 for 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:

AUDITORS

The auditors, Martin + Heller, 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 directors, on 28 October 2021 and signed on the board's behalf by:

Mr S Morgenstern - Trustee

Page 2

Report of the Independent Auditors to the Members of Nes Foundation Ltd

Opinion

We have audited the financial statements of Nes Foundation Ltd (the 'charitable company') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

Page 3

Report of the Independent Auditors to the Members of Nes Foundation Ltd

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

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

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:

Our audit will determine materiality and assess the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.

Our audit procedures are designed to respond to risks of material misstatement in the financial statements, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one result from error, as fraud may involve deliberate concealment by, for example forgery, misrepresentations or through collusion.

We did not identify any key audit matters relating to irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 4

Report of the Independent Auditors to the Members of Nes Foundation Ltd

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 auditors' 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 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.

Mr A Heller (Senior Statutory Auditor) for and on behalf of Martin + Heller Chartered Accountants Registered Auditors 5 North End Road London NW11 7RJ

28 October 2021

Page 5

NES FOUNDATION LTD

Statement of Financial Activities for the Year Ended 31 December 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Grants to Institutions
Grants to Individuals
Support costs
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
31.12.20
Unrestricted
fund
£
99,661
473,921
573,582
196,125
335,806
5,700
7,271
544,902
28,680
7,251,101
7,279,781
31.12.19
Total
funds
£
89,082
423,104
512,186
213,763
322,142
13,171
9,683
558,759
(46,573)
7,297,674
7,251,101

The notes form part of these financial statements

Page 6

NES FOUNDATION LTD

Balance Sheet 31 December 2020

Notes
FIXED ASSETS
Tangible assets
11
Investments
Investments
12
Investment property
13
CURRENT ASSETS
Debtors
14
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS
FUNDS
18
Unrestricted funds
TOTAL FUNDS
31.12.20
Unrestricted
fund
£
13,610
100
9,215,923
9,229,633
198,124
64,857
262,981
(230,093)
32,888
9,262,521
(1,982,740)
7,279,781
7,279,781
7,279,781
31.12.19
Total
funds
£
13,714
200
9,215,923
9,229,837
164,687
21,229
185,916
(172,113)
13,803
9,243,640
(1,992,539)
7,251,101
7,251,101
7,251,101

The financial statements were approved by the Board of Trustees and authorised for issue on 28 October 2021 and were signed on its behalf by:

Mr S Morgenstern - Trustee

The notes form part of these financial statements

Page 7

NES FOUNDATION LTD

Cash Flow Statement for the Year Ended 31 December 2020

Cash Flow Statement
for the Year Ended 31 December 2020
31.12.20 31.12.19
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 72,477 67,246
Interest paid (64,717) (74,481)
Net cash provided by/(used in) operating activities 7,760 (7,235)
Cash flows from investing activities
Purchase of tangible fixed assets (4,432) (4,059)
Purchase of investment property - (15,882)
Sale of fixed asset investments 100 -
Net cash used in investing activities (4,332) (19,941)
Cash flows from financing activities
New loans in year 50,000 841
Loan repayments in year (9,800) -
Net cash provided by financing activities 40,200 841
Change in cash and cash equivalents in
the reporting period 43,628 (26,335)
Cash and cash equivalents at the
beginning of the reporting period 21,229 47,564
Cash and cash equivalents at the end of
the reporting period 64,857 21,229

The notes form part of these financial statements

Page 8

NES FOUNDATION LTD

Notes to the Cash Flow Statement for the Year Ended 31 December 2020

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES


OPERATING ACTIVITIES
31.12.20 31.12.19
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 28,680 (46,573)
Adjustments for:
Depreciation charges 4,537 4,571
Interest paid 64,717 74,481
Increase in debtors (33,437) (42,651)
Increase in creditors 7,980 77,418
Net cash provided by operations 72,477 67,246
  1. ANALYSIS OF CHANGES IN NET DEBT
ANALYSIS OF CHANGES IN NET DEBT
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank 21,229 43,628 64,857
21,229 43,628 64,857
Debt
Debts falling due within 1 year - (50,000) (50,000)
Debts falling due after 1 year (1,992,539) 9,799 (1,982,740)
(1,992,539) (40,201) (2,032,740)
Total (1,971,310) 3,427 (1,967,883)

The notes form part of these financial statements

Page 9

NES FOUNDATION LTD

Notes to the Financial Statements for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Income

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

Expenditure

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

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

Allocation and apportionment of costs

The trustees have allocated all the support cost to the charities sole activity, namely 'Grants to Institutions'.

Tangible fixed assets

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

Investment property fixtures & fittings

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

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

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
31.12.20 31.12.19
£ £
Donations 99,661 89,082

continued...

Page 10

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

3. INVESTMENT INCOME

Rents received
RAISING FUNDS
Investment management costs
Portfolio management
Rates & water
Legal & professional fees
Light & heat
Insurance
Property repairs
Ground rent
Depreciation
Interest payable and similar charges
31.12.20
£
473,921
31.12.20
£
48,621
660
1,282
2,655
11,202
60,651
1,800
4,537
64,717
196,125
31.12.19
£
423,104
31.12.19
£
51,687
2,446
220
2,147
8,950
67,461
1,800
4,571
74,481
213,763

4. RAISING FUNDS Investment management costs

5. CHARITABLE ACTIVITIES COSTS

Grants to Institutions
Grants to Individuals
GRANTS PAYABLE
Grants to Institutions
Grants to Individuals
Grant
funding of
activities
(see note
6)
£
335,635
5,700
341,335
Support
costs (see
note 7)
£
171
-
171
31.12.20
£
335,635
5,700
341,335
Totals
£
335,806
5,700
341,506
31.12.19
£
322,142
13,171
335,313

6. GRANTS PAYABLE

continued...

Page 11

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

6. GRANTS PAYABLE - continued

The total grants paid to institutions during the year was as follows:

APTE Limited
BFON Trust
Binyen Torah Limited
Care All Limited
College for Higher Rabbinical Studies
Craven Walk Beth Hamedrash Trust
Edupoor Limited
Friends of Beis Chinuch Lebanos Trust
Ichud Mosdos Gur Limited
Inspirations
Keren Chochmas Shlomo Trust
Keren Hatzolas Doros Alei Siach
Kollel Torah Veyirah Limited
Kollel Veyoel Moshe
Sheves Achim Reception Trust
Shir Chesed Beis Yisroel
Start Upright
Talmud Torah D'Chasidei Gur
Donations less than £10,000
31.12.20
£
-
-
10,000
27,000
10,000
-
20,000
-
26,000
-
-
74,500
10,000
11,000
61,035
-
-
-
86,100
335,635
31.12.19
£
10,000
12,000
-
-
10,000
10,000
16,150
10,000
34,500
30,000
16,000
15,500
-
-
-
55,360
23,000
12,000
67,632
322,142
7. SUPPORT COSTS
Governance
costs
£
Other resources expended 7,271
Grants to Institutions 171
7,442
8. NET INCOME/(EXPENDITURE)

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

31.12.20 31.12.19
£ £
Auditors' remuneration 2,100 2,100
Depreciation - owned assets 4,536 4,571

continued...

Page 12

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

10. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.12.20 31.12.19
Trustees 3 3
No employees received emoluments in excess of £60,000.
TANGIBLE FIXED ASSETS
Investment
property
fixtures
& fittings
£
COST
At 1 January 2020 49,789
Additions 4,432
At 31 December 2020 54,221
DEPRECIATION
At 1 January 2020 36,075
Charge for year 4,536
At 31 December 2020 40,611
NET BOOK VALUE
At 31 December 2020 13,610
At 31 December 2019 13,714

11. TANGIBLE FIXED ASSETS

continued...

Page 13

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

12. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 January 2020 200
Disposals (100)
At 31 December 2020 100
NET BOOK VALUE
At 31 December 2020 100
At 31 December 2019 200

There were no investment assets outside the UK.

The investment represent share capital in Merryhall Limited, which was dormant throughout the year.

13. INVESTMENT PROPERTY

FAIR VALUE
At 1 January 2020
and 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Prepayments and accrued income
31.12.20
£
186,137
11,987
198,124
£
9,215,923
£
9,215,923
9,215,923
9,215,923
31.12.19
£
150,972
13,715
164,687

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

continued...

Page 14

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.20
£
Bank loans and overdrafts (see note 17)
50,000
VAT
477
Other creditors
168,756
Accrued expenses
10,860
230,093
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.12.20
£
Bank loans (see note 17)
1,982,740
17.
LOANS
An analysis of the maturity of loans is given below:
31.12.20
£
Amounts falling due within one year on demand:
Bank loans
50,000
Amounts falling due in more than five years:
Repayable otherwise than by instalments:
Bank loans more 5 yrs non-inst
1,982,740
18.
MOVEMENT IN FUNDS
Net
movement
At 1.1.20
in funds
£
£
Unrestricted funds
General fund
7,251,101
28,680
TOTAL FUNDS
7,251,101
28,680
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
573,582
(544,902)
TOTAL FUNDS
573,582
(544,902)
31.12.19
£
-
618
160,635
10,860
172,113
31.12.19
£
1,992,539
31.12.19
£
-
1,992,539
At
31.12.20
£
7,279,781
7,279,781
Movement
in funds
£
28,680
28,680

continued...

Page 15

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

18. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are a
Unrestricted funds
General fund
TOTAL FUNDS
At 1.1.19
£
7,297,674
7,297,674
s follows:
Incoming
resources
£
512,186
512,186
Net
movement
in funds
£
(46,573)
(46,573)
Resources
expended
£
(558,759)
(558,759)
At
31.12.19
£
7,251,101
7,251,101
Movement
in funds
£
(46,573)
(46,573)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS
At 1.1.19
£
7,297,674
7,297,674
Net
movement
in funds
£
(17,893)
(17,893)
At
31.12.20
£
7,279,781
7,279,781

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 1,085,768 (1,103,661) (17,893)
TOTAL FUNDS 1,085,768 (1,103,661) (17,893)

continued...

Page 16

NES FOUNDATION LTD

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

19. RELATED PARTY DISCLOSURES

£74,361 (2019: £76,732) was donated to the charity from Lionrule Commercial Limited. Mr Morgenstern & Mr Sheinfeld are directors of Lionrule Commercial Limited.

Page 17

NES FOUNDATION LTD

Detailed Statement of Financial Activities for the Year Ended 31 December 2020

Detailed Statement of Financial Activities
for the Year Ended 31 December 2020
31.12.20 31.12.19
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 99,661 89,082
Investment income
Rents received 473,921 423,104
Total incoming resources 573,582 512,186
EXPENDITURE
Investment management costs
Portfolio management 48,621 51,687
Rates & water 660 2,446
Legal & professional fees 1,282 220
Light & heat 2,655 2,147
Insurance 11,202 8,950
Property repairs 60,651 67,461
Ground rent 1,800 1,800
Depreciation of tangible fixed assets 4,537 4,571
Bank interest 64,717 74,481
196,125 213,763
Charitable activities
Grants to institutions 335,635 322,142
Grants to individuals 5,700 13,171
341,335 335,313
Support costs
Governance costs
Auditors' remuneration 2,100 2,100
Bank charges 922 1,030
Accountancy fees 4,200 4,200
Legal fees 220 2,353
7,442 9,683
Total resources expended 544,902 558,759
Net income/(expenditure) 28,680 (46,573)

This page does not form part of the statutory financial statements

Page 18