2021-01-31-accounts

COMPANY REGISTRATION NUMBER 06791806 CHARITY NUMBER 1135484

Kosher Outlet Assistance Ltd Company Limited by Guarantee

Financial Statements

31 January 2021

COHEN ARNOLD

Chartered Accountants & Registered Auditors New Burlington House 1075 Finchley Road LONDON NW11 0PU

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Financial Statements

Year ended 31 January 2021

Contents	Page
Trustees' annual report (incorporating the director's report)	1
Independent auditor's report to the members	6
Consolidated statement of financial activities (including consolidated
income and expenditure account)	11
Consolidated statement of financial position	12
Statement of financial position	13
Consolidated statement of cash flows	14
Notes to the financial statements	15

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 January 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 January 2021.

Reference and administrative details

Registered charity name	Kosher Outlet Assistance Ltd
Charity registration number	1135484
Company registration number	06791806
Principal office and registered	Churchill House
office	137-139 Brent Street
	London
	NW4 4DJ
The trustees	Mr J Perl
	Mr J Cope
	Mr I M Lerner
	Mr D Fluss
Auditor	Cohen Arnold
	Chartered Accountant & Statutory Auditor
	New Burlington House
	1075 Finchley Road
	LONDON
	NW11 0PU
Bankers	HSBC
	897 Finchley Road
	London
	NW11 7NX

- 1 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 January 2021

Structure, governance and management

Governing documents

The charity is constituted as a company limited by guarantee and as such, its governing documents are its Memorandum and Articles of Association.

Its registered charity number is 1135484 and its company registration number is 06791806.

Appointment, training and recruitment of trustees

The trustees (as directors for company law purposes) may at any time co-opt any individual who is qualified to be appointed as a trustee to fill a vacancy in their number or as an additional trustee. New trustees are subject to trustee induction training which includes an understanding of the content of the Memorandum and Articles of Association, their legal obligations under Charity Act and Company Law, the organisational structure of Kosher Outlet Assistance Ltd and the recent financial performance of the charity. Trustees are encouraged to attend appropriate external training events which enhance their knowledge and skill thereby improving the performance of their role.

Group structure and relationships

The charity owns the entire share capital of an operating subsidiary Kosher Outlet Ltd, a grocery retailer, incorporated in England and Wales, and its company registration number is 06791792. Kosher Outlet Ltd’s registered office is Churchill Hill, 137-139 Brent Street, London NW4 4DJ.

Management of the group

The day to day operations of the subsidiary such as purchasing stock, sales and general operations are delegated to the management team working within Kosher Outlet Ltd. Large and one-off type transactions, premises, legal and financial related areas are undertaken and approved by the Trustees.

Trustees seek advice from their Accountants and other professionals. The trustees have a strong connection to the local community and when the necessity arises they will avail themselves of a local professional for advice which is quite often provided pro-bona.

Related parties and co-operations with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee of the charity with a supplier company must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported. None of the trustees have any beneficial interest in the charity.

Objectives and activities

The charity's objective is to relieve financial hardship among the people of the Jewish community in London by providing such persons with goods which they could not otherwise afford.

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities and setting the grant making policy for the year.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 January 2021

Objectives and activities (continued)

The subsidiary undertaking, Kosher Outlet Limited operates a not-for-profit grocery store based in Northwest London to ensure that Kosher groceries are more affordable and accessible to the poor within the community. In addition, it operates a voucher scheme whereby vouchers can be purchased at face value which are then distributed to the poor within the community to redeem for groceries in the store. This scheme is used by other charitable organisations whom wish to distribute them to their beneficiaries.

Grant making policy

Grants are made to charitable organisations which accord with the objects of the charity.

Strategic report

The following sections describing the achievements and performance and separately, the financial review, form the strategic report of the charity.

Achievements and performance

During the year the charity continued its activities in support of charitable organisations and aggregate donations were paid in the sum of £147,593 (2020: £277,119).

The benefits that these charities provide include provision of basic necessities and financial support to the poor.

The charity measures it success on the amount of food vouchers and grants it able to distribute in accordance with its objectives.

Individuals within the community benefit from the availability of low-cost Kosher food with the aim of reducing living costs and providing more disposal income for the poor within the community and enabling them to purchase other basic necessities. The charity has received informal feedback from individuals that they are now managing their living costs better due to the availability of low-cost Kosher food.

In addition, the effects of Brexit on the Pound Sterling has made Kosher food which is largely-imported from overseas even more expensive. This has caused increased footfall as more individuals seek out low cost Kosher food.

Financial review

The charity continued its charitable activities through its food voucher scheme and by making grants to other charitable organisations in financial support of the poor.

The charity’s wholly owned trading subsidiary, Kosher Outlet Ltd continued to trade well although, turnover decreased by 8% compared to the previous year. The profits, of the subsidiary, in the year under review were gift aided to the charity after the year end.

The effect of Brexit on the Pound Sterling and continued uncertainty within the market has caused increased cost of goods making the Kosher groceries more expensive, however, the trustees continue to actively source low cost groceries from suppliers in order to keep their prices down to a minimum.

The charity’s commercial lease of its store premises at Pentavia Retail Park was terminated by the lessor during the year and the charity vacated the premises in July 2021. Subsequently, in August 2021 the store moved its operations to its new premises located in the Brent Cross area in Northwest London.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 January 2021

Key Performance Indicators

The trustees monitor the group's performance against the strategic objectives on a regular basis. Performance is assessed against the strategy and expectations using financial and non-financial indicators. The key financial performance indicators used by the group are as follows:

rmance indicators used by the group are as follows:
	2021	2020
	£	£
Grants and donations received	68,700	204,096
Charitable activities	147,593	302,258
Net movement in funds	210,698	85,533

Risk management

The trustees have a risk management strategy which comprises:

• an annual review of the principal risks and uncertainties that the charity and its subsidiary Kosher Outlet Ltd face;

• the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and

• the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

This work has identified that financial sustainability is the major financial risk for both the charity and its subsidiary. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due to ensure sufficient working capital by the charity and its subsidiary company. Attention has also been focussed on non-financial risks arising from fire, health and safety of customers, staff and management of the store and food hygiene. These risks are managed by having robust policies and procedures in place, and regular awareness training for staff working in these operational areas. The trustees are satisfied that these systems and procedures manage any perceived risks.

Reserves policy

At the year-end £1,320,094 (2020: £1,109,396) was held as unrestricted funds in the group.

It is the policy of the charity to maintain unrestricted funds, which are the free reserve of the charity, at a level, which the trustees think appropriate after considering the future commitments of the charity, unplanned emergency expenditure and the likely administrative costs of the charity for the next year. In addition, after the year end the commercial lease on its store premises terminated as mentioned above and the trustees are in the process of building a fund for the future fit-out and relocation costs of a new premises.

Plans for future periods

The trustees plan to continue to make distributions in accordance with their grant making policy and to ensure that an appropriate level of reserves is maintained.

The trustees plan in the short to medium term to establish permanent premises to secure its future of providing low cost food and generating profits in support of the charity to be able to distribute funds in accordance with its charitable objectives.

Investment Powers, Policy and Objectives

The trustees, having regard to the liquidity requirements of operating the shop, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index. Due to wider economic circumstances deposit rates have been depressed and so this aim was not achieved in the year. Under the Memorandum and Articles of Association, the charity has the power to make any investment, which the trustees see fit. The trustees regularly review the charity's position and needs in respect of the investment policy.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 January 2021

Trustees' responsibilities statement

The charity trustees (who are also the directors of Kosher Outlet Assistance Ltd for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure to our auditors

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

Auditor

Cohen Arnold is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

The trustees' annual report and the strategic report were approved on 22 November 2021 and signed on behalf of the board of trustees by:

Mr J Cope Trustee

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Independent Auditor's Report to the Members of Kosher Outlet Assistance Ltd

Year ended 31 January 2021

Opinion

We have audited the financial statements of Kosher Outlet Assistance Ltd (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 January 2021 which comprise the consolidated statement of financial activities (including the consolidated income and expenditure account), the consolidated statement of financial position, the statement of financial position, consolidated 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 the 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 group's and parent charity’s affairs as at 31 January 2021 and of the group’s 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; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and Charities Act 2011.

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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or;

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Independent Auditor's Report to the Members of Kosher Outlet Assistance Ltd (continued)

Year ended 31 January 2021

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 information. 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 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.

Opinion on other matter prescribed by the Companies Act 2006

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

• the information given in the trustees’ annual report including the strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees’ annual report including the strategic report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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:

• adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charity 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.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Independent Auditor's Report to the Members of Kosher Outlet Assistance Ltd (continued)

Year ended 31 January 2021

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 group’s and the parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibility 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 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 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:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the group through discussion with the trustees and identified financial reporting legislation and charity legislation as being most significant to these financial statements.

· We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with the laws and regulations.

· We discussed with the trustees the policies and procedures regarding compliance with these legal and regulatory frameworks.

· We assessed the susceptibility of the group's financial statements to material misstatement due to noncompliance with legal and regulatory frameworks, including how fraud might occur, by enquiry with the trustees during the planning and finalisation phases stages of our audit. The susceptibility to such material misstatement was determined to be low.

· Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Independent Auditor's Report to the Members of Kosher Outlet Assistance Ltd (continued)

Year ended 31 January 2021

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.

• 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 group’s or parent 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 auditor’s report. However, future events or conditions may cause the group or the parent charity to cease to continue as a going concern.

• 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.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Independent Auditor's Report to the Members of Kosher Outlet Assistance Ltd (continued)

Year ended 31 January 2021

Cohen Arnold is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

USE OF OUR REPORT

This report is made solely 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.

Asher Sternlicht FCA (Senior Statutory Auditor)

For and on behalf of Cohen Arnold New Burlington House Chartered Accountant & Statutory Auditor 1075 Finchley Road LONDON NW11 0PU

Our audit was completed 22 November 2021 and our opinion was expressed at that date.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Consolidated Statement of Financial Activities (including Consolidated Income and Expenditure Account)

Year ended 31 January 2021

		Unrestricted	Total Funds	Total Funds
		Funds	2021	2020
	Note	£	£	£
Income and endowments
Donations and legacies	5	68,700	68,700	204,096
Other trading activities	6	6,874,556	6,874,556	7,434,274
Investment income	7	1,006	1,006	2,259
		------------------------------------	------------------------------------	------------------------------------
Total income		6,944,262	6,944,262	7,640,629
		------------------------------------	------------------------------------	------------------------------------
Expenditure
Raising funds	8	6,581,624	6,581,624	7,246,542
Expenditure on charitable activities	9/10	151,940	151,940	308,554
		------------------------------------	------------------------------------	------------------------------------
Total expenditure		6,733,564	6,733,564	7,555,096
		------------------------------------	------------------------------------	------------------------------------
Net income and net movement in funds		210,698	210,698	85,533
Reconciliation of funds
Total funds brought forward		1,109,396	1,109,396	1,023,863
		------------------------------------	------------------------------------	------------------------------------
Total funds carried forward		1,320,094	1,320,094	1,109,396
		===============	===============	===============

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 15 to 24 form part of these financial statements.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Consolidated Statement of Financial Position

31 January 2021

		2021		2020
	Note	£	£	£	£
Fixed assets
Investments	14		28,106		32,380
Current assets
Stocks	15	493,372		481,067
Debtors	16	73,205		39,507
Cash at bank and in hand		1,225,303		1,092,782
		──────────		──────────
		1,791,880		1,613,356
Creditors: amounts falling due within
one year	17	(499,892)		(536,340)
		──────────		──────────
Net current assets			1,291,988		1,077,016
			──────────		──────────
Total assets less current liabilities			1,320,094		1,109,396
			──────────		──────────
Net assets			1,320,094		1,109,396
			══════════		══════════
Funds of the charity
Unrestricted funds			1,320,094		1,109,396
			──────────		──────────
Total charity funds	20		1,320,094 ══════════		1,109,396 ══════════

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

These financial statements were approved by the board of trustees and authorised for issue on the 22 November 2021 and are signed on their behalf by:

Mr J Cope Trustee

Mr J Perl Trustee

Company Registration Number: 06791806

The notes on pages 15 to 24 form part of these financial statements.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Statement of Financial Position

	31	January 2021
		2021		2020
	Note	£	£	£	£
Fixed assets
Investments	14		1		1
Current assets
Debtors	16	–		–
Cash at bank and in hand		1,023,321		1,049,751
		──────────		──────────
		1,023,321		1,049,751
Creditors: amounts falling due within
one year	17	(77,331)		(202,091)
		──────────		──────────
Net current assets			945,990		847,660
			──────────		──────────
Total assets less current liabilities			945,991		847,661
			──────────		──────────
Net assets			945,991		847,661
			══════════		══════════
Funds of the charity
Unrestricted funds			945,991		847,661
			──────────		──────────
Total charity funds	20/21		945,991		847,661
			══════════		══════════

These financial statements were approved by the board of trustees and authorised for issue on the 22 November 2021 and are signed on their behalf by:

Mr J Cope Trustee

Mr J Perl Trustee

Company Registration Number: 06791806

The notes on pages 15 to 24 form part of these financial statements.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Consolidated Statement of Cash Flows

Year ended 31 January 2021

	Group	Group	Company	Company
	2021	2020	2021	2020
	£	£	£	£
Cash flows from operating activities
Net income	112,368	85,533	98,330	155,795
Adjustments for:
Depreciation on fixed asset investment	7,027	8,095	–	–
Other interest receivable and similar income	(1,006)	(2,259)	(1,004)	(2,056)
Gains on disposal of tangible assets	–	(76)	–	–
Interest payable and similar charges	111	100	111	100
Changes in:
Stocks	(12,305)	(76,406)	–	–
Trade and other debtors	(33,698)	39,098	–	3,544
Trade and other creditors	(36,443)	55,544	(124,760)	47,701
	----------------------------------	----------------------------------	----------------------------------	----------------------------------
Cash generated from operations	134,384	109,629	(27,323)	205,084
Interest paid	(111)	(100)	(111)	(100)
Interest received	1,006	2,259	1,004	2,056
Tax paid	–	(8,777)	–	–
	----------------------------------	----------------------------------	----------------------------------	----------------------------------
Net cash from operating activities	135,279	103,011	(26,430)	207,040
	==================================	==================================	==================================	==================================
Cash flows from investing activities
Purchase of fixed asset investments	(2,753)	(11,765)	–	–
Proceeds from sale of tangible assets	–	950	–	–
Additions in subsidiary	–	–	–	–
	------------------	--------------------	----------------------------------	----------------------------------
Net cash used in investing activities	(2,753)	(10,815)	–	–
	=================	==================	==================================	==================================
Net increase in cash and cash equivalents	132,526	92,196	(26,430)	207,040
Cash and cash equivalents at beginning of
year	1,092,776	1,000,580	1,049,751	842,711
	-------------------------------------------	-------------------------------------------	-------------------------------------------	-------------------------------------------
Cash and cash equivalents at end of year	1,225,303	1,092,776	1,023,321	1,049,751
	===========================================	===========================================	===========================================	===========================================
Analysis of cash and cash equivalents
Cash in hand	1,225,303	1,092,782	1,023,321	1,049,751
Overdraft facility	–	(6)	–	–
	-------------------------------------------	-------------------------------------------	-------------------------------------------	-------------------------------------------
Total cash and cash equivalents	1,225,303	1,092,776	1,023,321	1,049,751
	===========================================	===========================================	===========================================	===========================================

The notes on pages 15 to 24 form part of these financial statements.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 January 2021

1. General information

The charity is 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 Churchill House, 137-139 Brent Street, London NW4 4DJ.

2. 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 (FRS 102)); the Companies Act 2006 and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.

Kosher Outlet Assistance Limited meets the definition of a public benefit entity under FRS 102. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared in accordance with the accounting principles appropriate to a going concern, as the trustees have a reasonable expectation that the group has adequate resources to continue in existence for the foreseeable future by meeting its liabilities as they fall due, based on the net current asset position of the company and available sources of finance.

Judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 23.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary, Kosher Outlet Ltd on a line-by-line basis. Kosher Outlet Ltd’s financial statements are made up to the same date as the holding company 31 January 2021. A separate statement of financial activities and income and expenditure account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

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Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

3. Accounting policies (continued)

Income resources

All income is 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;

• income from the sales of groceries are recognised when invoiced to the customer which is considered the point of delivery and is measured at the fair value of the consideration received for goods supplied, net of returns, discounts and value added tax;

• interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

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 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 apportioned to 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 between the activities they contribute to on a reasonable, justifiable and consistent basis.

Costs of raising funds comprise of operating the grocery store which is represented net of VAT.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received. Where the grant does not impose specified future performancerelated conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Fund accounting

General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Operating lease

The charity classifies the lease with the store premises as operating lease. Lease payments are recognised as an expense over the lease term on a straight-line basis.

- 16 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

3. Accounting policies (continued)

Fixed assets investments

All fixed asset investments are initially recorded at cost.

Shares in the subsidiary company are held at cost as the main purpose of this investment is to provide a service to the community.

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 calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Plant and machinery	20%
Fixtures and fittings	20%
Office equipment	20%

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

At the end of each reporting periods stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the income statement.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Trade and other debtors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition, trade and other debtors that are classified as receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be received net of impairment.

Trade and other creditors

Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition trade and other creditors that are classified as payable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid.

- 17 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

4. Limited by guarantee

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

5. Donations and legacies

		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
		2021	2020
		£	£
	Donations	68,700	204,096
		==============	==============
6.	Other trading activities
		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
		2021	2020
		£	£
	Store income	6,861,278	7,434,274
	Government grants	13,278	–
		-------------------------------------	-------------------------------------
		6,874,556	7,434,274
		==============	==============
7.	Investment income
		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
		2021	2020
		£	£
	Bank interest receivable	1,006	2,259
		========	=========
8.	Raising funds
		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
	Store expenditure	2021	2020
		£	£
	Cost of sales, distribution and general administrative costs	6,176,614	6,871,899
	Staff costs	384,573	355,283
	Employers national insurance contributions	20,437	19,360
		--------------------------------------	--------------------------------------
		6,581,624	7,246,542
		=====================================	=====================================

No employee received emoluments of more than £60,000 during the year or in the previous year. The average number of persons employed by the group during the year, including the directors, amounted to 21 (2020: 18). The split between full-time and part-time staff is 16 (2020: 15) and 5 (2020: 3) respectively.

- 18 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

9. Expenditure on charitable activities by fund type

	Total	Total
	Unrestricted	Unrestricted
	Funds	Funds
	2021	2020
	£	£
Charitable activities	147,593	277,119
Support costs	4,347	31,435
	-------------------------------	-------------------------------
	151,940	308,554
	==============================	==============================

10. Expenditure on charitable activities by activity type

			Total	Total
	Activities	Support costs	Unrestricted	Unrestricted
	undertaken		Funds	Funds
	directly		2021	2020
	£	£	£	£
Charitable activities	147,593	–	147,593	302,258
Governance costs	–	4,347	4,347	6,296
	------------------------------	------------------------------	------------------------------	------------------------------
	147,593	4,347	151,940	308,554
	=============================	=============================	==============================	==============================

Included in charitable activities expenditure is £76,593 of grants paid to institutions of which £68,500 was paid to Achisomoch Aid Company Limited. The benefit that these charities provide include provision of basic necessities and financial support to the poor.

11. Analysis of support costs

			Total	Total
			Unrestricted	Unrestricted
			Funds	Funds
		Support costs	2021	2020
		£	£	£
	Premises and office costs	–	–	25,139
	Governance costs	4,347	4,347	6,296
		----------------------------------	----------------------------------	----------------------------------
		4,347	4,347	31,435
		==================================	==================================	==================================
12.	Auditors remuneration
			2021	2020
			£	£
	Fees payable for the audit of the financial statements		2,350	2,350
	Fees payable for other non-audit services of associates		5,050	5,050
			──────	──────
			7,400	7,400
			══════	══════

- 19 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

13. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees. The charity has not met individual expenses incurred by trustees for services provided by the charity.

14. Investments

Group

Investments in tangible assets

Group Investments in tangible assets
	Plant &	Fixtures &	Office
	Machinery	Fittings	Equipment	Total
	£	£	£	£
COST
At 1 February 2020	69,982	18,162	13,640	101,784
Additions	652	–	2,101	2,753
Disposals	–	–	–	–
	─────────	─────────	─────────	─────────
At 31 January 2021	70,634	18,162	15,741	104,537
	═════════	═════════	═════════	═════════
Depreciation
At 1 February 2020	45,949	14,557	8,898	69,404
Charge for the year	4,937	721	1,369	7,027
Disposals	–	–	–	–
	───────	───────	───────	───────
At 31 January 2021	50,886	15,278	10,267	76,431
	═══════	═══════	═══════	═══════
Net book value
At 31 January 2021	19,748	2,884	5,474	28,106
	═══════	═════════	═══════	═════════
At 31 January 2020	24,033	3,605	4,742	32,380
	═══════	═════════	═══════	═════════
Company
Investment in subsidiary
Shares in UK Group undertaking
			2021	2020
			£	£
Cost or valuation
At 1 February 2020 and 31 January 2021			1	1
			═════	═════
Impairment
At 1 February 2020 and 31 January 2021			-	-
			═════	═════
Carrying amount
At 31 January 2021			1	1
			═════	═════
Analysis of investments at 31 January between funds
			Total Funds	Total Funds
			2021	2020
			£	£
Other
UK Group undertakings			1	1
			════	════

- 20 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

14. Investments (continued)

The UK Group undertaking represents 100% of the issued ordinary share capital of Kosher Outlet Ltd.

Kosher Outlet Ltd is incorporated and operates a low-cost grocery store in North West London, in line with the parent charity’s charitable purposes of providing affordable Kosher groceries to the Jewish community. The main purpose of this investment is to provide a service to the community.

The results of Kosher Outlet Ltd are shown below for the year ended 31 January 2021:

	2021	2020
	£	£
Turnover	6,861,278	7,434,274
Other income	13,280	203
Expenditure	(6,582,190)	(7,266,739)
	─────────	─────────
Profit for the year	292,368	167,738
	===============================	===============================
Aggregate capital and reserves	374,104	261,736
	===============================	===============================

15. Stocks

		Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Finished goods	493,372	481,067	–	–
		----------------------------------	----------------------------------	------------------------------	------------------------------
16.	Debtors
		Group		Company
		2021	2020	2021	2020
		£	£	£	£
	Trade debtors	73,205	37,290	–	–
	Other debtors	–	2,217	–	–
		----------------------------------	----------------------------------	---------------------	-----------------------------
		73,205	39,507	–	–
		==============	==============	=========	============

17. Creditors: Amounts falling due within one year

	Group		Company
	2021	2020	2021	2020
	£	£	£	£
Overdraft	–	6	–	–
Trade creditors	439,866	521,126	–	–
Other taxation and social security	16,168	5,384	–	–
Amounts owed to group undertakings	–	–	71,271	199,271
Corporation Tax	–	–	–	–
Other creditors	43,858	9,824	6,060	2,820
	-----------------------------------	-----------------------------------	---------------------------	---------------------------
	499,892	536,340	77,331	202,091
	==============	==============	===========	===========

- 21 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

18. Financial instruments

The carrying amount for each category of financial instrument is as follows:

			2021	2020
			£	£
Financial assets measured at amortised cost
Financial assets measured at undiscounted amount net of impairment			1,298,508	1,132,289
			=========================================	=========================================
Financial liabilities measured at amortised cost
Financial liabilities measured at undiscounted amount			499,892	536,340
			======================================	======================================
Unrestricted funds
Group
	Balance at			Balance at
	1 February			31 January
	2020	Income	Expenditure	2021
	£	£	£	£
General Funds	1,109,396	6,944,262	(6,733,564)	1,320,094
	===================================	===========================================	===========================================	====================================
Company
	Balance at			Balance at
	1 February			31 January
	2020	Income	Expenditure	2021
	£	£	£	£
General Funds	847,661	249,704	(151,374)	945,991
	===================================	===================================	====================================	==================================
Group
	Balance at			Balance at
	1 February			31 January
	2018	Income	Expenditure	2020
	£	£	£	£
General Funds	1,023,863	7,640,629	(7,555,096)	1,109,396
	===================================	===========================================	===========================================	====================================
Company
	Balance at			Balance at
	1 February			31 January
	2018	Income	Expenditure	2020
	£	£	£	£
General Funds	691,866	464,263	(308,468)	847,661
	===================================	===================================	====================================	==================================

19. Unrestricted funds

- 22 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

20. Analysis of net assets between funds

Group

		Net current	Total Funds
	Investments	assets	2021
	£	£	£
Unrestricted Funds	28,106	1,291,988	1,320,094
	=============================	=============================	===============================
Company
		Net current	Total Funds
	Investments	assets	2021
	£	£	£
Unrestricted Funds	1	945,990	945,991
	==========	===========================	===============================
Group
		Net current	Total Funds
	Investments	assets	2020
	£	£	£
Unrestricted Funds	32,380	1,077,016	1,109,396
	=============================	=============================	===============================
Company
		Net current	Total Funds
	Investments	assets	2020
	£	£	£
Unrestricted Funds	1	847,660	847,661
	==========	===========================	===============================
Statement of financial activities of the charity
The results of Kosher Outlet Assistance Ltd are shown below for the year ended 31 January			2021:
		2021	2020
		£	£
Income and endowments
Donations and legacies		248,700	442,096
Investment income		1,004	22,167
		──────────	──────────
Total income		249,704	464,263
		══════════	══════════
Expenditure
Expenditure on charitable activities		151,374	308,468
		──────────	──────────
Total expenditure		151,374	308,468
		══════════	══════════
		──────────	──────────
Net income and net movement in funds		98,330	155,795
		══════════	══════════
Reconciliation of funds
Total funds brought forward		847,661	691,866
		──────────	──────────
Total funds carried forward		945,991	847,661
		══════════	══════════

21. Statement of financial activities of the charity

- 23 -

Kosher Outlet Assistance Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 January 2021

22. Related parties

As reflected in Note 14, Kosher Outlet Ltd is a wholly owned subsidiary of the charity and is also related by virtue of the directors and trustees being common to the charity.

23. Accounting estimates and judgements

Stock

Management considers the nature and condition of the stock held at the year-end as well as the saleability of returned goods in determining an appropriate provision.

Trade debtors

Management uses details of the age of trade debtors and the status of any disputes together with external evidence of the credit status of the counterparty in making judgements concerning any need to impair the carrying values.

Operating lease commitments

The charity has entered into a commercial lease as a lessee on its store premises. The classification of such leases as operating or finance lease requires the charity to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets.

- 24 -