s£ REGISTERED COMPANY NUMBER: 08154119 (England and Wales) REGISTERED CHAIUTY IWMBKR: 1148431 Group Strategic Report, Report of the Trustees And Audited Consolidated Financial Statemeots For the year ethded 3151 December 2021 for NILKANfH ESTATES Nilkanth Estates Contents of the Consolidated Financial Statements For the year ended 315t December 2021 Pages Trustees, Report (including Group Strategic Report) Ind¢pend¢nt Auditor's Report 10 Consolidated and Charity Stat¢m¢nÉ of Financial Activities 14 Consolidated Charity Balan¢¢ Sheel 15 Consolidated and Clwity Cash Flow Statement 16 Notes to the Consolidated Accounts 17-27 Nilkanth Estates Report of th¢ Trustees (including Group Strategie Report) For the year ended 31st December 2021 Th¢ Trnst¢es (who are a150 directors ol th¢ Clwity for th¢ purpos¢s of the Companies Act) present their Atmual RepKptL Strateglc Report and the audited financial statements of Nilkanth Estates (the 'Charity or,Compan￿> and the group for the year ended 3 1st December 2021 Nilkanth Estat¢s (company number 08154119, incorporated in England on 24 July 2012) and its wholly-controlled subsidiary, Brandon Hous¢ Limit¢d (company number 106E2051. incorporat¢d in England on 9 February 2017), are both charitable or8anisaltons established as Companies limit¢d by guardntee. The Charity is based in the UK and has its head office in Neasden, London. The group's purpose& as set out in th¢ Objects Clause conlained in the Charity's and its subsidiary's M¢moTandum of Asswiation are.. to advance th¢ Akshar Purushottam Swaminarayan denomination of the Hindu religion based upon the teaching5 principles of Bhagwan Swaminarayan; and to foster the practice and worship of th¢ Akshar Purnshottam Swavninarayan denomination of the Hindu religion as revealed by Bhagwan Swaminar&yan' preserye and safeguard the health of all persons and in particular of young persons who are in danger of becoming addicted to or dependent upon illegal drugs of aThy descript10￿ alcohol. solvents or oth¢r addictive substances" advance education for the public benefit" protnot¢ community participation tn h￿lthY reereation $0 &8 to develop participants, physical. menthl and spiritual capaoili¢s' and for those purposes without pr¢judice to the g¢nernlity of the foregoin& to allow other charities having similar objects to occupy any of its premises at nil or nominal rent. Our &ift￿ fully reflect th¢ putposes that the group was set up to further. EllsuriDg our work deliver& our aims The trustees review th¢ aims, objectives and activities of the Charity each year. This review looks at what the Charity has achieved and the outcomes of its work in the previous 12 months. The review looks at the 5uc¢ess of each key activity and the benefits they have brought to those groups ofpeople w¢ are set up to help. The review also helps us ensure our aim. objectives and activilies remain focused on our stated purposes. We have referred to the guidance contain¢d in the Charity Commission's generdl guidance on public benefit when reviewing our aim and obj¢cliv¢s and in planning our future activities. In particular, th¢ trusl¢es consider how planned activities will contTibute to th¢ aims and obj¢ctive5 they have set. Volunteers Th¢ Charity is run by its trustees and other volunteers who give their time freely in th¢ day-to-day management of the Charity. Page 1 Nilkanth Estates Report of the Truste¢s For the year ended 315¢ December 2021 GROUP STRATEGIC REPORT Achievement and perforniance Nilkanth Estates own and manage a debt-free dIVe￿e propety Portfolio with a carrying value of £84.93 million. of which properties with M net IK>ok value of £44.67 million are used for charitsble purposes specifically for us¢ by Bo¢hasanwasi Shri Aksh8r PuTshottam san￿ha 'BAPS' in the advancement of our common objectives. Properties valued at £38.32 million are held for investment purp)s¢s. Our expenditure objective is two-fold-. Incre￿ inv¢stment in¢ome by increasing our property portfolio in order to support th¢ operating costs whcre required by BAPS and other charities which share the ¢ommon objective of advancement of the Akshar Purushottam Swaminarayan denomination of the Hindu faith. to fund the acquisilion and development of properties for us¢ by BAPS and other charili¢5 whirh share the common objective of advancement of the Akshar Purushottam Swaminardyan denomination of th¢ Hindu faith. The properties held for investment purposes are predominantly residential properties and a propffjused as a private Hindu faith-based school which has recently ceased its activities and which the Trustees are consid¢ring alternative uses. The propxrti¢s held as tangible fixed assets are those provided by the Charity to BAPS for us¢ across the county as temples, assembly halls and ancillary purpose5. In addition, there are a number of residential properties which are held io provide accommodation for fiJll-tim¢ volunteers, priests and ov¢r5¢as visitors. Charl¢able Activitles During the year, the Group achieved its aims and objectives by providing properties with a carrying value of £46.67 million rent-free to BAPS and The s￿Jud&s Foundation (and its wholly-owned subsidiaries and group underthkings). Both th¢se charities have the same aims and objectives as Nilkanth Estal¢s. Th¢ prO￿tieS provided by the Group to BAPS in¢lud¢ Mandirs situated in: Neasden, London Leeds Manchester South London Coventry Leicester Birmingham Wellingborough Chigwell, London Loughborou Preston Havant Luton Southend-on-sea The activtties undertakcn at the above properties further the Charity's common aims and objectives for the publi¢ benefit and include a variety of weekly activities, spiritual forums for children and adults. courses in ethnic language, music, and dance, and events which cultivate personal talents and interpersonal skills and promote Ihe strengthening of r¢lationships within communities and families, The holding of congregations was prohibited during th¢ Covid-19 pandemic as a result of which the properties provided to BAPS wer¢ used on a restricted basis. These restrictions ar¢ now being eased and il is expected that normal us¢ will resume soon. FiDancial review Th¢ Group is fund¢d by th¢ following main ￿tIvities.. Rental income Donations r¢¢¢ived Treasury management. Page 2 NilkaDth Estates Report of the Trustees For the yev4r ended 318t December 2021 The Group funds its ¢xpenditur¢ from rental income d¢rived frotn its investment propeTty PKJrtfolio and has the freedom to spend both in¢om¢ and capital. provided th¢ core endowment of the fund is maintained. Th¢ Group holds ash balances to manage fluctuations in cash flow. In 2021, th¢ Group received donations of £NIL from S￿Judas Foundation, a registered Charity with Simil￿ aims and objectives as th¢ Charity (2020 £lm) and after net investment inwme of £1.321m (2020 - £1.113m). depreciation costs on its fixed asset properties and governance costs of £1.080m (2020- £1.038m). and n¢t gains on the revaluation of fixed a55ets of £540,000 (2020- £6.199m). the Group's retained net income for yearwas £1.246m (2020- £7.02m) and awumulated r¢s¢rv¢s at the y¢ar-end were £88.217m (2020- £86.970m). During 2021, the Group spent atotal of approximately £1251m (2020- £1.234m) on operating costs. Two properties were acquired during the year. Fundrnising activitie The Group nor th¢ Charity undertake any public fimdraising a¢tivtti¢s. Investment perfonnattee In 2021. the Group'5 property investment portfolio valued at £28.322m (cost- £26.316m) genernted a totsl return of c.50/0 on value which th¢ trustees ronsider is reasonable for its prop¢ty Portfolio and broadly around market expectations. Liability 1tt8uranee The Group pu￿h&s¢S trust¢¢ liability insurantt on behalf of the twslees to protectthem against claims that may arise from the perfornmnce of their charitable duties. Res¢rv¢ Policy The Trustees review re5erYes annually. Their policy is to hold enough cash reserv¢s to meel the op¢rating costs of the Group for at least one year. Surplus funds from donations and rental income are accumulated and used to build new temples or maintain existing ones. In establishing this policy. the Board of Truste¢s conducts an annual review of the level of unrestricted reserv¢s in the general fund by ¢onsideTing risks assooiat¢d with the various incom¢ streams, expenditur¢ plans and balanc¢ sheet items. This ¢nables an estimate to be made of the level of reserves that are sufficient: to allow time for re-organisation in the event of a downturn in income or asset values- to protect on-going work programme. and to allow the Group to meet its objectives Risks and issues considered by the Board of Trnsl¢es in making this judgement on the level of unrestricted Teserves include.. likelihood of a downturn in income stream5: period of time required to re*stablish in¢om¢ str¢ams' period of time required to downsize the Group operations" whether there is adequate control over budgets potential decrease in the value of the inv¢stment portfolio- and requirements for a reasonable level of working capital. Page 3 Nilkanth Estst¢s Report of the Trustees For the year ended 31sI December 2021 The Group's opeTatin8 expenditur¢ does not nornially exceed £400,000 per annum. Th¢ Tn￿teeS are of th¢ view that maintaining free r¢S￿V¢s, which are considered total unr¢stricted funds less those funds represented by operational and investment fixed assets. of at least thr¢¢ times this amounL i.¢. £1.2nL will provide suifi¢ient resources in the event of advetse conditions. As at 31 December 2021, the Group's free reserves amounted to £3.29m. The Charity holds surplus res¢rv¢s to fund the fu￿re purchase of addilional properties for use in fiutherdnce of its charitable objectives. The Trustees have confirnied that, after careful revicw ofthe res¢rv¢s policy. as at 31 December 2021, the Group's free reserves were in excess of its reserves policy. In considering the adequacy of the reserves, Ihe Tru5t¢es have taken into account the largely discretionary nature of its expenditure and th¢ amount of cash held and investment income derived. Principal risks And uneertainties The main risks for th¢ Group are: generation of rental income from its investment properties to fund its own operating ¢osls and support the operations of other charities with Common objects and activities. Income from letting its investment properties is dependent on the economic cy¢les, includingtheir impact on l¢nant covenant quality, interest rates, inflation, property values and environmental and health and safety measures and its compliance. The Group typically a¢quires properti¢s in are&s which its tnJst¢¢s believe can be readily let at re&sonable income l¢v¢ls and with little risk of void p¢ri(Kls. The trustees regularly cary out maintenance of its properties to comply with health and safety oblig&tions and to ensure that its propwties do nirt fall into a st&t¢ of disrepair. - The Group r¢lie5 on donations from Sarjudas Foundation to supplement its rental income SU￿lUSeS in order to be abl¢ to financ¢ th¢ aquisition of both inv¢stm¢nt properties and properties acquired by the Charity and made available for use by BAPS and other charities with similaT aims and objectives. Sarjudas Foundation is an established Charity and the trnstee5 see no reason why donations from that Charity may cease. however. the Group has an un¢ncumbered investment prop¢rty portfolio with a valu¢ of £31 m and could ¢asily g¢ar up with d¢bt to finance further property aquisitions should donations from Sariudas Foundation ease. Fi￿ne1#1 and risk mall4gemellt objectives and policles Th¢ Trustees are responsible for ensuring effe¢tive risk managemenL and that internal controls are in place to approprial¢ly manage th¢ risk ¢xposur¢ of the Group. tn doing 50, the Board has considered the major risks to which the Group is exposed. the potential impact and probability associated with each ri5K and th¢ mitigating actions need¢d to reduce each risk to a level that the Trnstees considers to be acceptable. The major financial risks are each subje¢t to ongoing monitoring and managemenl. Income and ￿st control are subject to ongoing review on at least a quarterly basis with prior approval ofthe Board need¢d for significant cost activities. The following sections provid¢ details ￿gardIng the Group'5 exposure to the &bovfrmentioned financial risks and the objectives, policies and pro¢esses for the management of th¢5e risks. {a) Credit risk Credit risk is ihe risk of loss that may arise on oulstanding fllwicial instnllnents should a counterpaty default on ils obligations. Such credit risk would arise primarily from trade and other receivables. The Group's trade debtors Mre minimal and other debtors relate to payments on account of construction work on certain of its existing properties. Consequently, the Group considers its credit risk to be minimal. For cash and bank balances, the Group minimises r¢dit risk by dealing exclusively with high credit rating financial institutions. Page 4 Nilkxnth Estates Report of the Trustees For the year ended 31Jl Deceinber 2021 (b) Liquidity risk Liquidity risk is th¢ risk that the Group will encovnt¢r difficulty in meeting financial obligations due to shorta8¢ of funds. Th¢ Group has no debt or other significant financial obligations and maintain5 sufficieni liquid cash resources to meet its opeTating cash flows. (c) tnterest rdte risk Interest rate risk is the risk that the fair valu¢ or ￿tUre cash flows of the Group's financial instruments will fluctuate because of Changes in market interest rates. The Group has no interest-bearing borrowings and as such has no ¢xw)sure to interest rate risk. As the Group has no significant int¢r¢sl-b¢aring financial assets, its Income and operatin8 cash flows are substantially indep¢ndent of changes in market int¢r¢st rates. The Group 's interest beartng financial assets are mainly short temi in nature. Inltrnal Control The Trust¢¢s have overall responsibility for ¢nsuring that the Group has appropriate systems of internal controls across th¢ ¢ntire organisation. The systems of internal control are designed to provide reasonable. bul not absolute, assurance against material misstatement or loss. tnt¢mal control processes implemented by the Trnstees include." Production of monthly management accounts and review of financial results and p¢rforn)anc¢ indicators by the Trustees at monthly meetings. Delegation of authorty and segregation of duties. IdentifJ¢ation and manag¢ment of risk. Future plans Nlikanth Estates continu¢ to seek suitsble investhjent properties to develop its portfolio. With th¢ support of donatI(￿S from Sariudas Foundation and surplus ￿ntaI income from its investment properties, th¢ Group intends to a¢quir¢ further investment proiknies and support th¢ activities of BAPS who share common alms and obj¢¢tives. Subsidiary Undertaking: Nilkanih Estates also holds whollY￿ontrOl1ed subsidiary, Brandon House Limited. Brandon Hous¢ Limited has same objects as th¢ Nilkanth Estates. Brandon House Limited holds a mixed-use assets. Brandon Hous¢. part of which is rented oul commercially and thus account¢d for as an investment, and part of which is used for operational purposes and thus account¢d for as a tangible fixed ass¢t. The principal risks are similar to the ones hi8hlighted for the group in the section below. Page 5 Nilkantb Estate8 Report of the Trustees For the year ended 3111 D¢¢ember 2021 STRucfuRE, MANAGEMENT AND GOVERNANCE Governing do¢Mment Nilkanth Estates is a registered Charity (number 1148431) under the Charities Act 2011 and is a charitsble organisation incorporated in England on 24 July 2012 as a company limited by guarant¢¢ und¢r Company number 08154119. Th¢ Charity is controll¢d by its governing documenL Memorandum and Articles of Assoctation, Trustees There were 3 trustees durin8th¢ year. The ttwstee5 have responsibility form¢etingthe Group's charitable obliwdtions and objectives. Changes in Truste¢s during the year ar¢ provided below. Under the requirements of the Memorandum and Articles of Association of the Charity, trusle¢s are elected to serv¢ for a period of three years after which they must be re Spiritual, moral and int¢ll¢¢tual d¢velopmeni ix)th those who wish to benefit from what the what the Group offers" and through its support of BAPS. promoting Hindu valu¢5 and s¢￿Are by members of BAPS in and to their communities. to the ben¢fit of indivtduals and society as a whole. Events sill¢e the end of the year Inforniation relating to events since the end of the year is given in the notss to the financial statem¢nls. Page 7 Nilkanth Estates Report of the Trustees For the year ended 31st De¢emb¢r 2021 Related parties ¥nd r¢lationship$ witkn other orgauis4tiolls Nilkanth Estates is related to both Sarjudas Foundation and BAPS Swaminarayan Sansth4 and there are a number of ttustees in common, and all three charities share the same objectives. In 2021, the Charity r￿e1Ved a donation of £NtL (2020 - £lm) from Sarjudas Foundation and continued to provide BAPS with premises from which to hold cOn￿gatIonS ¢ts in the advan¢¢m¢nt of their objectives. BAPS ￿¢UpieS & numlxr of properties owned by Nilkanth Estates for which no rent is payable. Reference and administrative details Registered Comp*ny number: 08154119 (England and Wales) Registsred Ch4rity number: l148431 Truytees: Mr. G.P Palel - Accountant Mr. S J Kara - Director of Strategic Alliances- IT Services Mr K Bhattessa - Hotelier Country of registration: England AuditoTh: MHA MacIntyr¢ Hudson Sixth floor 2 tA)ndon Wall Place London EC2Y SAU Principal Bankers: Th¢ Royal Bank of Scotland plc 354 Station Road Harrow HAI 3XZ Punjab National Bank (International) Limited 188 Ealing Road Wembley HAO 4QD Page 8 Nill(anth Est4te8 Report of Ihe Trustees For Ib¢ year ended 31$1 Deeember 2021 Soli¢itors: HU￿ Cartwright & Amin 12 John Street London WCIN2EB Al[D￿ORs The audttors, MHA Maclntyre Hudson, will b¢ proposed for reTrapw>intment at the forthcoming Annual General M¢ding following their appointment during the year. Report of the directors, on lees. incorporating a stra￿gi¢ reporL approved by order of the tK)ard of trustees, as the wmpany eplember 2022 and signed on the board's behalf by.. .J.Karrd-T Page 9 IYill(anth Estates Report of the Independent Auditors For the year ended 318t December 2021 OpiDiOll We have audited the financial statements of Nilkanth Estates (the 'parent charitable company,) and its subsidiaries (the 'group') for ih¢ y¢ar ended 31 December 2021 which comprise the Consolidated and Charity Statement of Financial Activities, the Consolidated and Charity Balance Sh¢¢ts, th¢ Con501idated and Charity Statement of Cash Flows and notes to the financial statements, including a summary of $i￿1r1eant accounting policies. The financial rep)rting framework that has been applied in their preparation is appli¢abl¢ law and United Kingdom Accounting Siandards, including Financtal Reporting Standard 102 The Financial Rew)rting Standard applithle in the UK and R¢publi¢ of Ireland (United Kingdom Generally A¢c¢pt¢d AccoLTnting Practice). In our opinion the fmancial statements: give a true and fair vi¢w of the state of the wup's and parent ¢haritable company's affairs as at 31 Decemkr 2021. and of iheir incoming resources and applicalion of T¢sourc¢s. including their incom¢ and expenditure, for the year then ended. have been properly prepared in a¢cordan¢e with United Kingdom Generally Accepted Ac¢ounting Prnctice. and hav¢ b¢en pr¢pared in accordance with the requirements of the Companies Art 2006. Basis for opillion We ¢onducted our audit in accordance with Ini¢rnational Standards on Auditing (UK) (ISA5 (UK)) and applicable law. Our responsibilities under those stsndards are further described in ihe Auditor's Responsibilities for ihe audit of the financial statements s¢clion of our report. We are independent of the group and parent charitable company in a¢¢ordan¢¢ with th¢ ¢thi¢81 requirements a r¢l¢vant to our audit of the financial statements in th¢ UK including ihe FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe ihat th¢ audit evidence w¢ have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons ￿l￿till£ to going ¢oD¢ern In auditing th¢ financial statements. we have concluded that the Trnstees, us¢ of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Trustees, assessment of the entity's ability to continu¢ to adopt the going concern basis of accounting included critical reviews of their funjre investm¢nl strafrgy and expected investtnent income. Based on the work we have perforn)ed. we have not identified any material un¢ertainiies relating to events or conditions tha¢ individually or collectivety, may cast si￿]rICant doubt on the charitable COMpan￿S ability to continue as a going concem for a perii)d of 8t lea￿ twelve months from when the financial stat¢m¢nls aTe authorised for issue. OurresFrf)nsibilities and th¢ ￿spOnSibl11t1¢s of the Trustees with r¢sp¢cttO going concern are de￿ribed inih¢ relevant sections of this report. Other inforniation The Tn￿lee$ are responsible for the other inforniation. The other infonnation comprises the infornydtion included in the annual repo¢ otherthan the financial statements and our auditor's reportthereon. Our opinion on ihe fittancial stat¢m¢nts do¢s not cover th¢ other information and, except to the extent otherwis¢ ¢xplicitly stated in our reporL we do not express any forn) of assurance conclusion thereon. Page 10 NilkAnth Estates Report of the Independent Auditors For the year ended 315t December 2021 In connection with our audit of the ffftancial statements our responsibility is to read the other inforniation and, in doing so. consider whether the oth¢r information is materially inconsist¢nt with the financial statements or our knowledge obtained in the audit or otherwise app¢ars to be materially misstafrd. If we identify such material in¢onsistenci¢s or appar¢nt material misstatements, w¢ are required to deterniine whether there is a material misstatement in the r]nan¢ial statements or a material misstatement of ihe other infonnation. Lf, based on the work we hav¢ perfornied, we wnclude that there is a mat¢rial misstalement of this oth¢r infornialion, we are required to report that fact. We have nothing to report in this regard. Opinions oll other mAlters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the inforniation given in the Tnjstees, report (incorporating the Directors, report and Strategic Report) for the financial y&v for which the financial stat¢m¢nts are prepar¢d is consistent with the financial statements. and the Trustees. report (incorporating the Dire¢tors' report and Strdtegic Report) h&s been prepared in &coordance with applicable legal r¢quiren]¢nts. MatterJ oll which we are required to report by exceptio In the light of our knowledge and understanding of the group and par¢nt ¢haritabl¢ company and its ¢nvironm¢nt obtained in the course of the audi( we have not identified material misslatements in the Director5, report. W¢ have nothing to report in respect of th¢ following matters in r¢lation to which the Companies Act 2006 r¢quiTes us to report to you if, in our opinion: adequate aC￿Unting records have not been kept by th¢ parent charitable company. or returns adequate for our audit have not been r¢ceived from branches not visited by us; or the parent Charitable ¢ompany's financial statements are not in a￿¢¢Ment with the a￿Ounting ￿ordS and retUrn5' or certain disclosur¢s of Directors. remuneration specified by law we not made; or we have not received all the inforn)ation and explanations we require for our audit,. OT Responsibilities of Trustees As explained mor¢ fully in th¢ Trustees, responsibilities statement included in the Trustees, Annual Report, the Trusl¢es (who ar¢ also the Directors of the charitable company for rh¢ purposes of company law) are responsible for the preparation of the financial statements and for b¢in8 satisfied that they give a tru¢ and fair view. and for such internal control as the Ttwstees deterniine is necessary lo enMbl¢ the prepardtion of financial statements that ar¢ free from material mi5ststem¢nL whether due to fraud or error. In preparing the financial statementy the TTU5tees are reswynsibl¢ for ass¢ssing th¢ group's and pom]t choxitsble ompany's ability to continue As a going concern, disclosin& as applicable. matt¢Ts related to going concern and using the going cOn￿rn bAsis of accounting unl¢ss the Trustees cither intend to liquidat¢ the wFup or the parent ¢haritabl¢ company or to cease operations, or have no re&lislic alternative but to do 50. Page11 Nilkanth Estate$ Report of the Independent Auditors For tbe year ended 31$t December 2021 Auditor's responsibilitie8 for the audit of the financial st4t¢ments Our objectives ar¢ to obtain r¢asonable assurance about wh¢th¢r the financial stat¢ments as a whole are fr¢e from material misstat¢menL wheiher due to fraud or etror. and io issue an auditor's report that includ¢s our opinion. Reasonable assurnnce is a high level of assurance, but is nirt a guarantee that an audit condu¢t¢d in accordance with ISAS (UK) will always detect a material misstat¢m¢nl when it exists. Misslalements can arise from fraud or error and are considered material if, individually or in the aggregate, they ¢ould reasonably be ¢xp¢thed to Anfiuence the economi¢ decisions of users taken on the basis of th¢s¢ financia] statements. Irregularities, iTKluding frauQ are instances of non•compliance with laws gnd regulations. We design prwedures in line with our responsibilities, outlined above. to detect rnaterial misslatements in respect of irregularities. includin8 fraud. The spe¢ific procedures for this engagement and the extent to which these are capabl¢ of d¢t¢¢ting irregulariti¢s, including fraud is detailed below.. Obtaining an understanding of the legal and regulatory fram¢works that the entity oper4t¢s in, focusing on those laws and regulations that had a dire¢t effect on the financial statements. Enquiry of those Charged with governan¢¢ around any instances of known or Suspected instances of Enquiry of those charged with governance around actual and potential litigation and claims. Enquiry of those charged with governance an)und any Anstanc¢s of non-compliance with laws and regulations. Reviewing the design and implementation of control systems in place. Testing the operational effeciiveness of the controls. Perforn)ing audil work ov¢r the risk of manvlgement overrid¢ of wntrols, including testing of journal entries and other adjustments for appropriaten¢ss, Evaluating the business ralionale of significant transactions outside the nornial course of business and r¢viewing a¢¢ounting estimates for bias; Reviewing minutes of meetings of those ¢harg¢d with governance. Reviewing financial statement disclosures and fr5ting to supporting documentation to assess compliance with applicabl¢ laws l￿d regulations. Because of the inherent limitations of an audit, there is a risk that w¢ will not detect all irregularities, including those l¢ading to a material misstatement in the financial stal¢ment5 or non-complian¢¢ with regulation. This risk increases th¢ more that compliance with a law or regulatffton is remov¢d from th¢ events and transa¢tions reflected in th¢ financial statements, as we will be less likely to become aware ofinstsnces of non-compliance. The risk is also gr¢at¢r regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusiow omission or misrepr¢s¢ntation. A further description of our responsibilities for the audit of th¢ financial statements is located on the Financial Reporting Council's website at: https:Ilwww.frc.org.uklOur-WorklAudiVAudit-and-assurance/Standards-and- guidan¢e/Stsndards-and-guidanCe-for-audito￿Aud1tOrs-reSponsibil1t1e$-for•audItlDeS¢rlption-of-auditor5- responsibilities-for-audit.aspx. This description fornis part of our auditor's report. Page 12 Nilk8nth Estates Report of the Independent Auditors For the year ended 3151 Deeember 2021 Uye of this report This r¢port is made solely to the charitable company's m¢mbers, a5 a body. in ￿e0rdance with Chapter 3 of Part 16 of the Companies A¢1 2006. Our audit work has been undertaken so that we might stste to the charitabl¢ company's members those matters we are r¢quired to state to them in an auditor's report and for no other purpose. To the fullest extent perniitted by law, we do not accept or assume responsibility to anyone other than th¢ charitable company and the charitable company's members as a body, for our audit work, for this r¢port. or for the opinions we have forn]ed. £AL Sudhir Singh FCA {S¢nior Statutory Auditor) For and behalf of Mli4 MacIntyre Hudson Statutory Auditor London, United KitTrgdom Date: 27 September 2022 Page 13 Nilkanth Estates Consolidated ahd Charity Ststement of Finan¢iAI Ae¢ivlties (ineorporating an 1￿Corne expenditure #f¢QUDt) For the year ended 31￿ De¢ember 2021 The Group IIIITe5trl¢ted funds 2021 2020 The CbArlty - unrestricted fmnds 2021 2020 Notes Income from: Donations and legacies Investment income Other 1.004.389 1.113,378 IJ20,930 636071 1,000,000 ,115,057 1,054262 636,871 Totsl in¢ome 1,957,801 2,117,767 1,691,133 2,115.057 Expendl¢ure on". Raising fi]nds Charitsble activities.. Provision of f￿1￿ltieS 171J69 176,075 159,779 175,221 1.079,971 1.058,412 1,051,577 .054212 Total ￿peDdl￿re 1251J40 1,234,487 12llJ56 1,229.433 Net ineomel{expendithre) before net losses on ibvestments 706,461 883,280 479,777 885,624 G￿nS on revaluation of fixed &8s¢ts Impaimient provision 13114 540.000 6,118,669 540.000 2,6O0,OL￿j Net movement in fund8 J246.461 7,001,949 1,019,777 485.624 Ullrestrirted funds brougbt forward 86,970J69 79.968,420 83,453,680 79.968,056 Unrestrirted funds ￿rIed forw4rd 18 88216,830 86.970.369 84A73,457 83,453,680 The totsl funds of the Company were Un￿tricted. There were no r¢stricted or d¢5ignated funds during the year or for th¢ previous year. All of ihe above results are derived from continuing activities. Thete wer¢ no recognised gains or losses other than those stated abov¢. The appended noies for part of these accounts. Page 14 Nilkallth Estale Consolidated And Chgrity Balance Sheets 98 ai 31 December2021 Company number 08154119 The Group 2021 The Charlty 2021 2020 2020 Fixed xsJ¢ts: Tangible &8sets Investmenl properties Mixed use &ssets 12 13 14 46,607802 47,706,116 28J22,585 26,316,262 10,000,000 10.000.IKH) 44,911,881 45,986,116 28J22,585 26,316.262 84,930J87 84,022,378 73234,466 72,302,378 Currellt assets: De￿Or$ C&8h at bank and in hand 16 232,741 3,184290 422.298 1676,271 &484251 2005,903 9,168,522 2.051,825 Li4bi]ities: Credito￿. amounts falling due within one year 3,417.031 3,098.569 11290.154 11,220,347 17 (130,588) (150,578) (51,163) (69,045) Ne¢ current ajsets 3286,443 2.947,991 11,238,991 11.151,302 Tolal Assets legy current Ilabilities 88216*30 86.970,369 84,473,457 83.453.680 Totgl Det a&8ets 88214830 86.970J69 84,473,457 83,453.680 Funds: Unrestricted incorne funds 18 88216030 86,970,369 84,473,457 83.453,680 Totsl funds 88216,830 86.970,369 84,473,457 83,453.680 Th¢ Group's fllwncial slatements have been prepared in accordance with the provisions applicable to companies subject to the Small companies r¢gime. The apFtnded notes fomi part of these accounts. The financial statements were approved by the Board of Tn￿te¢S on behalf by-. September 2022 and were signed on its . J. Kara G. P. Patel Trnstee Trn51ee Page 15 Nilkanth FJtates Con801idated and Charity Statement of Casb Flows For the year ended 31 December 2021 Tbe Group 2021 Thecbjrity 2021 2020 2020 Notes Net ¢ash provided byl (used ill) operating ¥etlvitie5 19 1289,909 1.883.634 IA35967 1,314,638 Cash flows from investlng artlvities: Dividends, interes( rents received from investm¢nts Purchase of tangible fjxed assets Puwhase of investment propety Pr(Keeds from sale of F￿ ProrErty 268.347 (223J75) {1,466J23) (460.876) 7008 1223J74) (1866?23) 907￿08 (4￿,876) Net Cash provided by/{used ID) investing a¢tiviti¢g (781,890) {460,876) {781,889) (Ig2,532) Cbjnge ID tasb alld cash equivgjlents ltt the ye&r 50&019 1.422.758 754,078 1.122,106 CastL and cash equivalents at the ixginning of the year 2,676271 1,253.513 2,051,825 929.716 Cash ¥nd eash equlvaleDts ¥4t the eDd of the year 3,184290 2,676.271 2,805,91 2,051.825 ANALYSIS OF CHANGES IN NET DEBT AS￿3] A5atOI January 2021 Group Cash flows 2021 Cash at bank and in hand 2,676271 508,019 3.184,290 2,676271 504019 3,184390 Chlrlty Cash at b￿)k and in hand 2.051,825 754,078 2,805.903 2,051025 754,078 200S903 Page 16 Nilkanth Estates Notes to the Con80lidAted fin4ncial slatements For the year eDded 31 December 2021 Accounting policies Basis of preparatloD The financial statements of the charitable company, have been prepared in accordance with the Ch￿itIeS SORP (FRS 102)'A¢counting and Reporting by Chariti¢s." 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) {issued in October 2019),. Financial Reporting Stand￿d 102 'The Financial Reporting Standard applicable in the UK and Republic of ITeland' and the Companies Act 2006. The financial ststements have been prepatEd under the historical cost Conventio￿ as modified by the revaluation of certain assets. (a) The fU￿tiOnal and presenta¢ion currency is UK Pound Sfrrling (£). These financial statements consolidate Ihe results of the Charity And its wholly-controlled subsidiary on a lirte by line basis. Transactions and balances between the Charity and its subsidiary have been eliminated from the consolidated financial ststements. Balances betw¢en th¢ ¢ntities are disclosed in the notes of the Charily's balance sheet. {b} Public benefit entity The Chariiy and its wholly-controlled subsidiary meet the definition of a publi¢ benefit entity under Charities SORP (FRS 102). (¢) Going Concern The majority of the income received from by the Group is investment in¢ome from its investment propety rtfolio which are let to social housing providers. The Group has ¢ontinued lo receive this income despite disruptions to the economy caused by Covid 19 and has not changed its strategic and business plans. The Ch￿lty h&5 mitiimal on-going legal or ¢onstructive commitments. There are no uncertainties. materia] or otherwise, regarding the fjroup's going concern. The ITUStees therefore hav¢ reasonable expectstion that the Group has adequate resources to continue in oFrntionAI existence forthe foreseeable future whi¢h ¢xc¢¢ds 12 month5 from the date of5igningof the fin￿￿(la1 statements and the￿(oT¢ continue to adopt the going concern basis of accounting in preparing the annuat c01￿￿11d￿ed financial stalemenls. (d) Income All income is tr¢o￿lSed in the Ststement of Financial A¢tivities once the Group has entillement to the funds, it is probable that the income will be received and that the am0[￿( Can be measured reliably. Voluntary income cotnprises revenues generated from various fornis of donations. Investment income includes income gene￿ed from property investment and Inte￿St received on cash dep)sits. (e) Donations of gifts servlees *Dd facilities Don￿ed professional sejvices and donated facilities are ff¢ognised as income when the group ha% Control ov¢r th¢ item or received the service, any conditions associated with the donaiion have been meL the receipt of economi¢ benefit from the use by the group of ihe item is pmbable and that economic benefit ¢an be m¢8sured reliably. In accordance wth the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Ill￿1¢¢$, annual report for more information about their contribution. On receipL donated gifts. professional services and donAted facilities are reco￿lSed on the b&8is of the value of ihe gift to the group which is the amount the group would have been willing to pay to obtain services or facilities of equivalent economi¢ benefit on the open mark¢L a ¢orresponding amount is then recognised in expenditure in the peri{￿ of receipL Page 17 Nilkallth Estates Notes to the Consolidated financial slAtements For the year ended 31 December 2021 Accoulltittg policies (eontinued) (o Expenditur¢ and irreeoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlemeni will be required and the amount of th¢ obligalion be m¢asured reliably. Exp¢nditur¢ is classified under ihe following activily headings: Costs of raising funds relate to the investment management costs. Expenditure on charitable activities includes the Costs of activities undertaken to further the purposes of the Charity and their associated support costs including governance costs and depreciation of tangible fixed &8sets. Expenditure is accounted for on an awruais basi5 and has been classified under headings that aggregate all cost related to the category. Where costs ￿)not be directly attributed to particular headirtgs they have been allocated to activlties on a basis Consistent with th¢ use of resources. trrecoyerable VAT is charged as a ¢ost against the activity for which the ext*nditure w&$ InCu￿¢d. Allocation of support eos¢s All support Costs are allocated to the expenditure otl charitable a¢tiviti¢S &8 none ofthese costs are all￿able to the costs of raising fund& which the investment management ¢osts. Support costs include governance eosts, which are the costs associated with the governance aThngements of the Charity. These ¢osts are associated with conslilutional and staiutory requirements and include any costs &8sociated with Ihe stral¢gi¢ management of the ￿0up'S activities. (b) T*x4tiOD The group is exempt from cotyoration t&x on its charitsble a¢tiviti¢s. TaDgible r￿ed assets Items of equipment are capitalis¢d where the purch&se price exceeds £500. Depreciation costs are allocated to a¢tiviti¢s on the basis of the use of the related assets in those activities. Assets are reviewed for impairnient If ¢ircumstonces indicate their carrying value may exceed their net realisable value a￿1 value in use. Depre¢l￿10ft is provided at rates calculated to WTite down the cost of each asset to its estimaled residual value over its expected useful life. The depreciation ￿e5 in use are ￿ follows: Freehold buildings on cost Freehold land is not depreciated. u) Investment propertles Investment prot*rties are measured at fair value at each reporting date and are not depreciated. Cash Inv￿t￿ellts Cash held in r]xed term deFwit accounts exceeding one year atr classified as fixed asset investments &% they are generally held with the overdll intention of long term retention for the Continuing benefit of the wup in the forni of income 8ThJ capitsl appreciation. (k) Debtors Tradeandotherdebtors are recognised atthe settlement amount due after trade discountoffered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 18 Niiknnth Estates Noles to the Consolidated financial statements For the year ended 31 December 2021 Accounting poli¢ies (continued) Loans which have been provided with an interest rate klow the market rate aNI for charitsble purposes are deemed concession￿ loans. {1) Ca$b at bank and In hand Cash at bank and ¢ash in hand includes cash and short lemi highly liquid investments with a short maturity of three tnonths or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any fvnds held on behalf of s¢rvi¢e users. (m) Creditors and provlslons Creditors and provisions are recognised where the gTOUP has a presenl obligation resulting frorn a past eveDI that will pmbably result in the transfer of funds to a third party and the amount due to settle the obligation can be rne￿ured orestimaled reliably. Creditors and provisions ar¢ nomially r¢cognis¢d at their settlement amount after allowing for any Irade discounts due. The group only has financial assets and financial liabiliti¢s of a kind that qualify as basic financial instruments. Basic financial instruments gre initia]ly recognised at irdnsaetion value and subsequently measured at their settlement value with the exception of bank loans Mthich are subsequenlly measured at amortised cost using the effective inlerest meihod. (n) Fund ac¢oun¢iDg Unrestri¢*d funds can b¢ used in accordance with the ¢harithble objectives at the discretion of the trustees. Restricted funds can only b¢ used for particularr¢stri¢ted purposes within th¢ objects of the Charity. Restrictions arise when specified by the donor or when fimds are raised for particular restricted pU￿oses. Crl¢k*l accounting estlm*tes atsd judgements The Group makes certain estimates and &55umptions regarding the firture. Estimates and judgem¢nts a continually evaluated baqed on historical exp¢ri¢nc¢ and other factors, including the expe¢tations of future events that are believ￿ to be reasonable under the circumstances. In the future. actual experience may differ from ihese estin￿leS and assumptions. The estimates and &8sumptions that have a significant risk of ¢ausin8 a maieriki adjusttnent to the canying amounts (rfassets and liabilities within the next financial year are discussed below: InveslmentPropertl¢s InV￿tMen1 properties whose fair value can be measured reliably without undue cost oreffort should b¢ measured at fair value atthe y¢ar end with any changes in fair value recognised in the statement of financial a¢livities. Th¢ investment pmperties have been valued by the tn]ste¢s at the peri￿l-end based on their knowledge of the properties and their location and having conducted infomial market research considering comparable properties. Following their ￿menl they have con¢luded that there has been no material change in the fair value since the previous Valuatio￿ with the exception of one inv¢stm¢nt proFrty whose fair value is ¢onsid¢r¢d to hav¢ increased by £2.6m since the previous y¢ar-end, following an illdependent valuation by RICS-accredi*d ¢hart¢red surveyor. A chang¢ in the &8sumpti¢)ns used by the trt￿ee$ may result in a change in th¢ value of investment prop¢rkies. Page 19 Nilkanth Estales Notes to the Consolidated financial statements For the year ended 31 December 2021 Critical aecounting estimates and judgementy colltinued FrÉeholdProperty The Group and tlte Charity hold freehold land and buildings. The freehold buildings are depreCI￿ed over a peri(xl of 50 years whilst land is not depreciated as its value is not likely to diminish overtime. The GtY)up carries out ￿gular maintenance of its freehold propertie5 and therefore il is likely that the useful lives of the property may exceed 50 years. The trustees have been required, in the absence of a split of purchase cosL to estimate the allocation of the rost of these properties between the relativ¢ elements attributable to land, which is not depreciated, and buildings. Having c4)nsulted with property professionals, considered statutory provision& and resear¢hed market factors, the tNstees consider of the acquisition cost of each Lingibl¢ fixed asset to represent land and 70/0 lo represent buildings. As suc14 30ts/ts of the cost of each tangible r￿ed asset proFwty is not depreciated. Covid-19 has had no Impa￿ on any accounting estimates and judgements. Ineome from donations aDd leggeies Group Charity 2021 2020 2021 2020 I,IM)4,389 I,000,Ix)o Income from investments Group Charity 2021 2021 2020 Rents] income- operating leases Inlerest receivable .320,930 1,113.378 1,054.262 846,710 268.347 IJ20,930 1,113,378 1,054362 1,115.057 Other Income Group Charlty 2021 2020 2021 2020 Profit on disposal of r￿ed a55ets 636,871 636,871 63A871 636,871 Page 20 Nilkanth Estates Notes to the Collsolidated financial st4tements For the year ended 31 December 2021 Cost ofr4ising funds- Investment mY4nagement costs Group Charity 2021 2020 2021 2020 Rates Gas and electricity Repaits and maintenan¢e Insurance Consultancy fees Bank clwges Sundries 412 16.873 75.146 57J35 20.958 469 176 {8,473) 8,235 93,960 58,085 23.863 392 13 1.879 7,651 75,146 55,435 20.958 426 163 93,685 55,435 23,863 359 171J69 176.075 159,779 175,221 Expendithre on ¢harAtsble activiti Group Charity 2021 2020 2021 2020 Provision of facilities Govern8nc¢ costs 1.050,752 29.219 1.038.612 19.800 .026,672 24.905 1,038,612 15.600 ,079,971 ,058,412 1,051577 ,054,212 All th¢ alK)v¢ costs are suP￿rt cost& GOverna￿e costs rep￿Se￿ auditors, remuneration ¢)nly. Net inwmel(expenditsre) for the year Net incomel(expenditure) for the year is 5￿ted after ¢harging: Group Charity 2021 2020 2021 2020 Depre¢iation of fixed assets- owned Audilot3' remunerntion (including VAT): 1,050.752 29,219 1,038,612 19,800 1.026,672 24,905 1.038,612 15.600 Stsff cTh8ts The Group does n(rt have any employees. Its trustees responsible for the govemance of the Group and give their time freely. Volunteers, including employees of The s￿Jud&s FOUnd￿10n and BAPS Charities manage the day-to4ay operdtions of the Group. Whilst the nalure of the voluntr¢￿' lime is not considered general, the monetary value of their tim¢ is not considered material and th￿$ not ￿08n1$￿ in the ac¢ounls. Page 21 Nilkanth Estate¥ Notes lo the Consolidated financial ststetnents For the year ended 31 December 2021 io. Trustees. remuneration and ￿p¢ll$e$ Neither the Charity trustees nor the director5 of the subsidiary were paid any remuneratio￿ nor did they re¢eiv¢ any other benefits from employment with th¢ Group in the year{2020: £nil). No Charity tnjstee r¢¢eived payment for professiona] or other services supplied to the Charity (2020: £nil). No expenses We￿ incurred in the year (2020: £nil). Taxation The wup is ex¢rnpt from ¢oryy)rdtion tax as a]1 its income is charitable and is applied for ¢haritable purposes. 12. TAngible fixed assets Group Assets under nstruction FTeehold Total Cost At start of the year Additions Disposals 64,542.332 64,542,332 235,722 (389,807) 235,722 (389,807) A¢ end of tbe year 64,152,525 235,722 64,388,247 Teeiatlon At stort of the year Charge for the year Disposals 16,836,215 1.050.752 (106,522) 16,836,215 1,050.752 (106,522) At end of the year 17,780,445 17,780,455 Net Book V¥luu: At end of the year 46?72,080 23S722 46,607,802 At start of Ik yeaT 47,706,116 47,706,116 Included in cost or valuation of land and buildin&8 is freehold land of £959,173 (2020- £959,173) which is not depreciated. Page 22 NilkAnth Estates Notes lo the Consolidated financlal statements For the year ended 31 December 2021 12. Tallgible fixed ￿ets (Cont'd) Cbarity Assets under Freehold eons Total Cost At start of the year Additions Distosals 62.822,332 62.822,332 235,722 {389,807) 235.722 (389.807) At end of the year 62.432.525 235.722 62,668.247 reciation At start of the year Charg¢ for the year Disposals 16,836,216 1,026,672 (106,522) 16,836,216 .026,672 1106.522) At end of the year 17,756,366 17,756,366 Net Book Valu At end of the year 44,676,159 23&722 44911,881 At start ofthe year 45.986,116 45,986.116 13. InV￿¢￿ent properti¢g TheGroup 2020 2021 The Charlty 2021 2020 Market value At start of the year Additions Revaluation R¢cl&ssification 26,316.262 1,466.323 540,000 31,456.717 26,316.262 23255,386 460,876 1,466,323 460,876 2,600,000 540,0(K) 1600.000 (8201,331) At end of tbe year 28J22,385 26,316,262 28J22J85 26,316,262 Investment properties with an original cost of £23.716m have been valued at £28.322m by the trustees. The twstees of the Group Ferfornied an assessment of the market value of its investment properties at the year- ¢Dd Following an independent valuation by a RICS-a¢¢redited chartered suryeyor. one investment proikny's fair value w&8 de¢moJ io have increased by £540,(KJO sinc¢ the ptEViOUS yearryend. The truste¢s reviewed the pr¢sentstion of the Bra￿lon House propety al the previous yearryend. They reassessed the presentstion and considered it a mixed-use asseL the investmenl part of which is recognised at year-end fair value (see Note 14 below). Page 23 Nilkallth E8tates Notss to the cong0lidate41 financial statetllents For the year ended 31 Deeemb¢r 2021 14. Mlxed-use Assets The Group 2020 Thecbority 2021 202 2021 Fair v8lue At start of the yeaT Reclassification Revaiualion 10.000.000 6,481,331 3,518.669 At e￿d of theyear lo,￿0,000 10,000,000 The truste￿ of the group reviewed the cl&ssifi¢alion of their Brandon House prO￿ty at the previo￿8 yearwend. They reassessed the presentation to better describe the use of this property as a mixed-use a￿et used for both operational and investment purpos¢s as sel out in Chariiy SORP parn 10.47. The trLLSt¢¢s of the group also reviewed the fair value of the element of The asset which is used for investment purposes al the previous year-end, in line with SORP requirements. Followingan informal valuation from aRICS- accr¢dit¢d pro￿rtY a(hTisor, the fair value of the proportion of ihe building let commercially had increased to £IOm. This gain in volue was recognised in the SOFA. 15. Investments in subsidiaries Nilkanih Ests¢es wntrols lo￿/￿ of a charitable company. Brnndon Hous¢ Limited (R¢& Charity no. 1172517 and Company no. 10612051), which was incorporated in England ond Wales on 9 February 2017. Brandon House Limited 15 acompany limited by guarantee. It owns three light indllstrial units and Beddington Conference Centre ('BCC'}. The industrial units have been rented out to a single tenant on a 10-yeay lease at an initial Tent of £2(M).000 for the first year rising lo £400.000 from the second year with rent review after 5 years. A summary of the financial statem¢nls of the ch￿Ity'S subsidiary, Brandon House Limited 15 shown b¢low: tatement of fiDancig1 Activlties 2021 2020 lllcome and Endowments from: Donations and legacies InVe￿rnent irKom¢ 4,389 266,668 266,667 Total income 266,667 271,057 Expendlture: on raising fimds provision of r￿lI￿tieS (39.984) (5.053) (268.347) Totsl exp¢ndiiure (39,984) {273,400) GalDS on ReV#l￿tiOn of r￿e￿ gwts 3.518.636 F4et In¢omeJ(expenditure) 22&fJ83 3.516,293 Page 24 Flilkattth FJtale8 Notes to the Consolidated fin4ncial statements For the ye4r ended 31 December2021 Balance sheet 2021 2020 Tangible assets Mixed use &￿t$ CutTent assets Creditors due within one year Cr¢ditors due after moTe than one year 1,695,920 1,720.( lo,0￿,000 10.000,( 561,128 812,474 (79,425) (81,533) (8.713,251) (9,213.251) Ne¢ assetslolabilltles) 3,464J72 3,237,690 16. Debtors Croup Charlty 2021 2021 2020 Amounts falling due within one year. Trade Debtors Other debtors Prepayments & accrued income 16,440 216,301 21,726 389,072 11,500 50,000 222,771 11.500 232,741 422,298 50,000 234271 Amounts falling due after more than one year: Concessionary loan 8,434,251 8.934,251 Aggregate lmounts 232,741 422,298 &484251 9,168,522 Nilkanih Estatesprovided a loan to its sulxidiary, Brandon House Limilel of£8,201.331 in 2017 forthepU￿has¢ of the subsidiary's property and to further both entitie5' charitable objectives. The loan.. incurs interest al 30/0 per aTmum, which is CO￿5]dered klow market rate; is secuTed against the pD)pety; is repayable on deman(i though the parent Charity has provided assurdn¢es that it will not be repayable until at le&st one year from 31 December 2021. 17. Crnlilors: Amounts falling due withill one year Group Ch2rfty 2021 2020 2021 2020 Trade creditors Other creditors AccnMIs 40,129 90.459 41.105 89,673 19,800 27.615 23,548 30.676 22.769 15.6(K) 130¥8 150,578 51,163 69.045 Page 25 Nilk4nth Eststes Notes to the Consolidated financial statements For the yeAr ended 31 De¢ember 2021 i& Funds The Croup 2020 2021 The Cbarlty 2021 2020 Unrestricted funds At start of th¢ year Incoming resources Resources expended Gain on revaluation of fixed a&8ets 86.970,369 1,957,801 (1.251,340) 540,000 79,968,420 83,453,680 79.968,056 2.117,767 1,691,133 2.115,057 (1.234,487) (1211,356) (1.229,433) 6,118,669 540,0(M) 2,600.000 At end ofthe year 88216,830 86,970,369 81473,457 83.453,680 19. Reconeiliatioll of net incomel(expeDdlture} to nel ta5b flow from operatlng acttvitle8 Group Charity 2021 202 2021 2020 Net Income for the reportlng perlod as per statement Df fjllancial Activities) Depreciation Gain on investhienls 1,050,752 (540,(W) Profit on disposal of tangible fixed assets (636,871) Interest re¢¢ivable (Increaseydecr¢a5e in debtors (D¢¢reaseYincreas¢ in ¢reditors 1,246.461 7.001.949 1.019.777 3.485,624 1,038,612 (6.118,669) 1,026.672 (540,000} {636.871) 1.038,612 (2,600,IXKI) {268,347) (347,792) 6,541 189.557 [19,9￿) {53,346) 16,088 684,271 (17,882) Net cash provlded byl{used in) oper4ting ac¢iTrities 1,289.909 1.883.634 IW5,967 1,314.638 20. Related pArty ¢rAnsaetiollJ The Group has provided Ope￿lOnal and investment properties with a ￿Ing value of £44.61hn to The S8riudas Foundation (and its wholly owned subsidiaries and group und¢rtaking5) and BAPS Chariti¢s rent- fr¢¢, for a nominal rent amounL or on an arni's length b&sis. The Sariudas Foundation and BAPS Charities have the same aims and objectives and the same beneficiaries as Nilkanth Esthtes. There ar¢ also common tNslee￿dlrC¢tOrS among the three entities. Nilkanth Estat¢5 also received unrestricted donations amounting to £NIL (2020.. £1 m) from The Saryudas FoUnd￿lOn during the year. Page 26 Nllkanth Estates Notes to ihe Consolidated financial statements For the year ended 31 December 2021 20. Related party ¢roDsactiODS {eontinued) In 2017, Nilkanth Estates provided a Concessionary loan of £8,271,331 to Br8ndon House Limited, its wholly- ¢onlrolled subsidiary. Of this loa￿ £8,201,331 was used to fund the purchase of the investFnent property held by this company. Interest on the loan is 3Q/o per annuTn atKI the loan is repayable on an indeterniinate tKriod. Intere￿ received during the period amounted to £NIL (2020- £268,347). Nilkanth Estates h&s also provided financial support to Brandon House Limited so th￿ the latter remains a going concern. 2021 2020 Ba]an¢¢ re¢¢iv&ble from Brandon House Ltd Impairnient pmvision Repayment 9213,251 (279,OOOJ 9.213,251 (279.(M)O) Brnndon House Limited received unrestricted donations of £Nil during th¢ year (2020: £4,389 of rental income) from Beddington Conference Centre Limited. Mr V H Patel, a fornier tn￿lee of Brandon House Limited, is also a director of Beddington Conference Centre Limited. 21. Subsequent Events The following propertie5 were acquired by the charity post year-end: On 14 January 2022, Nilkanth Eslates completed the pU￿h￿Se of 39 Meadow Garth for £500,703. 22. I ststss of the Charity and its Subsidi*ry The Ch￿lty is a company limited by guarantee and has no share capital. Its registered office address is 105-119 Br¢nffield Roa4 tA)ndon NWO 8LD. tn the ¢v¢nt of a winding up of the company. the liability of the trustees who are also the members of the company is limited to £1. Its subsidiary. Brandon House Limite￿ is also a company limited by guarantee, has no share capital and is also a regisletEd Charity. Nilkonth Estafrs is the sole member of Brandon House Limited and the forn)er's liability in the event of a winding up is limited to £1. The registered office address of the Subsidiary 1$ 104 College Road, Harrow HAI IBQ. Page 27