REGISTERF.D COMPANY NUIVIB£I R: 081541 J9 (Eiigland Aiid Wale5) REI GISTEI RED CHikTIITY NUMBER: 1148431 Croup Sti'ategic Report, Report of the Ti'u5tees and Audited Consolidated Finaneial Statements For the year ended 31" December 2022 for NILKANTH ESTATES
Nilkanth Est1ffj tes Conteiits of tlie Cojisolidattd financlal Stateinents ior the year ended 31st December 2022 Pages Rcporl of the Twstccs (including Group Stiatcgic Rcport) Repoil of tlie Indepeiideiit Auditors 10 Coiisolidated aiid Charity Siatem¢iil of Fiiiaiicial Activities 14 Coi)solidat¢d and Charity Balai)cc Sheets 15 Collsolidated aiid Chai'ity Cash Flow Statement 16 Notes to the Consolidated financial stateinenls 17-27
Nilkaiith Li states Report of the Triistees (including Group Strategic Report) rior the year elided 31. Deeember 2022 The Tjiislees (wlio dre also diyecloi's of thc Charity for the puiposcs of the Companies Acl} pi'esenl tl)eii' Annual Repoitt, Stratcgic Report and tlie audited financial statements of Nilkanih Estal¢s (tlie'charity, oi Coinp8ny') and thc gi'oup foi. Ihc year ended 31st December 2022. Nilkanth Bslaleb (company niimbcr 08154119, incotpoizled in England on 24 July 2012) and 115 wholly-controllcd .qiibsidiary, Brandoi) Hoiise Limilcd (coinpany niimbei. 10612051, incoivoi'ated iii England on 9 February 2017), ai'¢ boili Lhii'itablc organisalions established aq eompaiiies limited by guarantee. The Cliai'ity is based in tlie UK and l)as its head officc iii Ncasden, Londoii. OBJECTIVES AND ACTIVITIES Thc groiip's piirposes, as sel out iii Il)e Obje¢ls ¢laus¢ contained iii the Chaiity's and it8 subsidiary's Memorandum of AssocialLOII I'C.. lo advaiice the Aks1] Purusl)ottam Swainiiiai'ayan denominalioii of th¢ Fliiidii i'cligioii based iiBN)ii the leachiiigs aiidprinciples of Bhagwai) Swamii)arayan,' kuid to fosterthe practice aiid worship of the Akshai. Puiiishottam Sw#ii)iiiarayaii delloinin8tioii of the Hii)du religion as revcaled by Bhagwan swaiii1irayall. pres¢rye ld saf¢gird the health of all persons a]Id in parttcular of young pe130ns who are iii daiigei. of becomiiig addicted lo or dq)eiideiit iipon illegal diugs of any descriptioiTr. alcohol, solvents oi. othei. addictive subslallces- advance education for the public Ixiiefit. pi'oinote ¢ommuiiity participation in healthy Yecrealion so a5 to devclop pailicipants, physical, meiital and spirithal capacitie5' and foi. those pury)oses without PTejudic¢ lo the 8enei'ality of the foregoing, to allow oilier charities having similar objects to occupy any of its premises al nil or nominMI relit. Our aims fully reflect the purposes that the group was set up to further. I nsuring our Ivork delivers our #ims The liustees review the aims, objectives and activities of the Charity each year. This review looks al what the Charity has achieved aiid the outcome8 of ils work in the previoiis 12 moiiths. The review look8 at tlie success of each key activity aiid thc bcncfils they have brought ts> tliose groups of people we are sel Up lo hvlp. The review albv hclps us ensure our aim, objectives and a¢tiviti¢s i'emain focused on OiiT Stated purposes. Wc hav¢ refen'ed to the guidaii¢¢ coiilained in the Charity Commission's general guidance oil public b¢n¢fit when reviewing our aim aiid objectives and iii plaillliiig our fviure activities. Ii) parti¢ular, the tNslee8 consider Iiow planned activities will ntribute to the aim5 and obje¢tiv¢s th¢y have set. Volunteers The Chai'ity is by its trustees and other volunteers who give their lime fr¢ely in thc day-to-day management of the Charity. Page 1
Nilliantli Ei states Repoi't of tlie Trustees For tlie ye&ir ended 31$t December 2022 GROUP STRATEGIC REPORT AehievemeIit and perforniance Nilkantli Estates own and manage a debt-free diverse pKopeity portfolio willi a cryIng value of £96.74 million, or whicli propcrti&8 wilh a iiel book valu¢ of £53.5 million us¢d foi. charilablc purpose8 spcGifi¢glly for use by Bochasaiiwasi Shi'i Akshar Pui'sholtam Sanstha 'BAPS' in tlic advanccmcnl of our cominon objcrlivcs. Properties valiied at £43.24 millioii are held foi. investment piirposcs. thii. cxpeiidittii'e objective is two-fold.. iiicrease iiivestmeiit iiicoine by iiici'easing our property portfolio In oi'd¢i' to support the operating costs whci'c reqiiiiEd by BAPS aiid oihei. chatitics whieli sh81"e the coinmnii objeclivc of advancemriil of the Aksh<ir PLirusholtam Swamiiiarayaii deiiomiiiatioii of the l-liiidu faith. to fuiid the hcquisitioii and development of properties for use by BAPS aiid other chai'ities which share the cointnon objective of advancement of the Alcshai. Pul7hOltaM swll1nardYan denomination of the Hindu faith. Th¢ prop¢rlies lield for iiiveslin¢iit purposes ai'¢ predoinitiaiitly re8idei)lial properties and a property wliich was us¢d as a private Hii)du faith-based school has ceased its activitie5. This pi'operty thei'efoi'e has nowbeen i¢¢las8ified froin investmettt property to a freehold property. The Tiustees are considcring altciiialive use of this propcrty. The propeities held as tangible fixed assets are those provided by the Chai'ity lo BAPS foi. use acr05S the counliy as Icmplcs, ass¢mbly halls and ancillary puiyoses. In addition, there arc a huinbcr of residential properties which are held lo provide accoinmodalion for tull-time voliii)teers, priest5 and overseas visitors. Two iiiveslmenl properties wei'e damaged by fire duriiig the yeai.. Due to significant damage majoi. St01'alI0n works are being eatried out 011 these properties. Chi)ritable actItIeS Duriiig Ihb ycar, the Group a¢hieved ils aims and objectives by providiiig properties with a carrying value of £53.5 millton renl-free to BAPS andThe Sarjudas Fouiidalion (and its wholly-owned siib5idiari¢s aiid groiip undertakings). Both these charities have the same aims aiid objectives as Nilkanth Estates. The properties provided by the Group to BAPS includ¢ Mandirs situated in: Neasden, London Leeds Manchester South London Coventry Leicester Binningham Wellingborough Chigwell, London Loughboroii Pi'eslon Havant Lulon Southend-on-sea Th¢ activities undertaken at the above pi'operties fuitheT the Charity's common ain)s and objectives for the public benefit and include a variety of weekly activities, spiritual forums for childi-en and adults, courses in ethni¢ language. music, Imd dance, and events which cultivate personal talenls and interpersonal skills and proinote the stren8thening of relationships within communities and families. Financial r¢vie]Y The GroLiP is fuuded by the following main activities: (i) (li) Rental inconie Donations received Treasury management. Page 2
Nilkallth li state5 Report of the TISteeS For the year ended 31. December 2022 The Group ndS ils cxi)cndiluiE fl'om I'enlal incoine derived froin ils investmcnt pi'opcrty poi'tfolio and has tlie freedom to spend both income and capildl. The Group holds cash balances to manage flucttiatioi)s in cosh flow. In 2022, thc Group reccived donations of £7.2n) fiDm Sarjudas Fotiiidalioii, a i'egistei'ed Charity willi siinilar aims and obje¢livc5 as Ihc Charity (2021 -£Nil) aiid aftcT n¢t iiivttslmei)l income of £1.461m {2021 £1.321m), depr¢ciation costs on ils fixcd asscl properties aiid govcriiaiice costs of £1.214m (2021- £1.080m), and net gains on Ihe revaluation of fixed a%8els of £3.8in (2021- £540,000), the Group's relained iict inconie foi. year was £12.15m {2021- £1.246m) and occumulaled resc¢$ at the year-end were £100.368m (2021- £88.217m). Duri2)g 2022, the Group spetita total of approxin]at#ly £l.867m (2021-£1.25 Im) 011 operating costs. Four properties wei'¢ acqiiired duTiiig the year. Fundraislng actlvlties Neither the Group iior the Cliarity utiderlake aiiy piiblic l]dI.81$111g activities. Investment perfortnance 111 2022, the Gi'oup's property iiiveslineiit poi'ifolio valu¢d al £24.896in (¢ost- £19.687in) generated a total irtt]iii of c.4/D 01) value which the li9¢ee8 consider is reasonable foi. ils pi'operty portfolio aiid broadly ai'oui)d Inai'ket expcclalioi)s'. Lfiability Insurance The Group purchases lStee liability insui'ance on behalf of the trustces to protect them against claims that may arise from the peifomiance of their charitable duties. Reserve Policy The Trusle¢s Irview i'¢s¢rves ai)nually. Their policy is to hold enoiigli cash reserves to meet the op¢raÉiiig cost5 of Ilie Ciroiip 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 Tnjstees coxducls ali annual review of the level of unrestricted reseives in the general fund by consid¢i'ing risks asso¢iat¢d with tlie various income streams, expenditure plans and balance sheel items. This enables an estimate to be made of the level of reseives that are sufificient: to allow lime for i'e-organisation in the event of a downturn ill income or asset values. to protect on-going woi'k programme. and to allow the Group to meet its objectives Risks and iueS consideTed by the Board of TTUStces in making this judgem¢nt on the Icvel of unrestricted A'eserves include.. likelihood of a dow11tLn in income stream8. period of time required lo re-establish income streams. pcriod of time required to downsi7£ the Cii'oilp operations. whethei. theie is adequate control over bud¥els potential deciEase in the value of the investment poitfolio- and reqiiirements foi. a Yeasonable level of working capital. Page 3
Nilkanth Li states Report of the Trustees ior the year ended 31%1 Deeember 2022 The ThDUP'8 opcraliThg expciidittii'e does not iiormally exceed £400,000 per a])num. The Trustees arc of the vicw that inaiiilaiiiing frce rcservcs, whicli aLC considered total illuestticled fuiids less t1105c funds rcpreseiited by operational and invesliiieiit fixed assets, of at Ica5t thr¢c tiines tliis Ellnoimt, i.e. £1.2in, will provide sufficieiit rcsourccs in Ilie event of adverse coiiditions. As at 31 Dcccmber 2022, the Group's free reserv&8 amounted to £2.68m. The Cliai'ity holds SiTrpliis reseives to fund Ilic fiituyc purchabe of additional pi'operties for iise iThfiii'ÉheA'aiice of ils charitsble objectives. The T211Stces liave confii'med Iliat, aftei. careful i'cvicw of the r¢scives policy, as at 31 Deccrnbci-2022, Ilie Groiip's free i'eseives wei'e iii ¢xc¢ss of ils r¢sei'ves policy. Iii c0115ideriiig the adequacy of the i'e5eLVCS, the Tnislees hav¢ takeii into accoui)t the lai'gely discretioftary iiature of its expendittirc aiid the amowit of cash held #lid iiiveslment iiicome derived. Principal risl<s and uncertainties The maiti risks for the Group al'e-. gei)eralion of rei)lal income fi'om its iiivestineiit propa'lics to fund its owi opeE7ting costs and support th¢ opei'atioiis of other charities with coiniiioii objects aiid activities. Iiicome froin lettiiig ils iiiveslmeiit properties is depeiident an the eeoiiomic cyel&s, incllldiiig their impact oll tenant eoveiiaiil quality, inleresl i"ates, iiiflation, property values aiid enviroiimental and health and safety measure5 and ils compliancc. Thc CTI'OUP typically acquiirs propeilies iii areas which its Irustees believe can be i'eudily lel al reOIbI¢ ii)come levels and with little risk of void periods. The trustees i'egulai'ly caiiy oiit InEntertance of its pi'op¢rlies lo comply with health and safety obligations and lo ensLire that its piDpeities do not fall iiito a slate of disrepair. - The GIDup relies on don8tion8 from Satiiidas Foundation to supplement ils rcnlal income surpluses in order to be able to finance the avquisitioii of bot]i investment properties and properlics acquired by the Chaiity and made avail&ible for usc by BAPS and other chaiities with simiL4r aims and objectives. Sarjiidas Poiiiidation is an eslabh'slied Charity the trustees see no reason why donalioiis from that Charity may cease, howevei, the Group has an unencumbei'cd inveslinent property portfolio with a valuc of £31.8m and coiild c88ily gear up with debi to finance further property acquisitions should donations from Sajiudas Foundation ease. Finan¢ial and rlsk Inanagement objectives and policie$ The Trustees aTe responsible foi. ensuring effective risk management. and that inlemal ¢ontrols are in place lo appropriately manage ihe risk cxposure of the '0p. In doing so, the Boai'd has considered the major risks to which the Gi'oup is exposcd, the pulenlial impa¢l and probability associated witli each risK kd the mitigating actions needed to reduce each risk to a level that the Trustees considers to be acc¢ptable. The major financial risks are each siibject to ongoirAg monitoi'ing and management. Lncome and cost coiitt'ol are subject to ongoing review on at least a quartei'ly basis wkth prior approval of the Board n¢¢ded loi. significant ¢ost activities. The following sections plovide details gardIng the Group's exposur¢ to the above-mentioned financial Tisks and the objcctives, policies and processes for the management of tliese risks. (a) Credit risk Credit i'isk ts the risk of loss that may arise on outstsnding financial instnunents should a coiinteryaTty default on its obligations. Such ci'edit i'isk would alis¢ PLIM.11Y from ti'ade and othei. receivables. The Group's trade deblors are minimal and other debtors relate to paymcnls on account of constniction work on ceilain of 115 existing propertics. coleqUentIy, the Group considei's its credit i'isk to be mininial. For cash aiid bank balaiices, Ihe Group minimises credit risk by dealing exclusively with hi CiEdil rating fsnaiicial institutions. Page 4
Nillcanth li states Report of the Trllstees For the year ended 31%1 Deeembe?. 2022 (b) J,iqiiidily risk Liqiiidily iisk is Ihc I'isk that the 'Ol1p will encoiintci- ditTLailty in ii)eeling finaiicial obligali0115 due to shortagc of fid5. Th¢ Gi'oup ha.% no debt or other signifi¢ant fiiiancial obligatioi)s aiid matnlains siifficient IiqLiid ¢ash resoui'ces lo mccl ils operating cash flows. (c) Inlcrcsl i'ale risk Inlei'est 18te risk is tlic risk that Ihc fdif VdliTC oi. future ¢asl) flows of the Group's fEnancial insttuincnts will fliichiate because of chaiiges in mai'kel iiiterest i'ales. The Groiip has iio iiitei'est-bearing boi'i'owiiigs and as siich has iio eKPOSUI'e to iiilei'est lite risk. As the GIDiiP has iio sigiiificanl inteirBt-beariiig finaiiLial assets, ils income and opeialing cash flows al'e subslanlially indepeiident of changes in mark¢t intei'est i'ales. T])e Group's iiiterest be¢iring fliiancial assets al'e maiiily short lenn in iiattjre. Internal Conti'ol The Trustees have overall spoIlS1bIlity for eiisLii'ing that the Group has appi'opriate system5 of intcimal conh'ols across the eiitire oigaiiisation. The sysleiii8 of interi)al coiitt'ol al'e desigiied to provicle rgasvllJble, bul not absolute, assurailce agaiiist mat•ul misslatcrllciit or loss. liitcnial coiitrol processes iinplcmciilcd by the Tiustees includ¢- Produclioii of moiiihly managemeiil accounts and review of finaiicial i'esults and performance indicator5 by Ilie Trustees at monthly mcetings. Delegation of autlioi'ity and segregation of (lulies. Identification and management of risk. Future plans Nilkaiiih Estates continue to seek suitable investment propeitties to develop its portfolio. With the SUPPOTt of donations from salidas Foundation and surplus renlal income from its investmcnt prop¢rties, Ihe Group inlends to acquire further tnv¢slm¢nt properti and support the activities of BAPS who Shal'e common aims and objectives. Subsidlary Undertaking: Nilkanth Islates also holds wholly-conti-olled subsidiary, Brandoii House Limited. Bi'andon House Limited hab same objects as the Nilkanth Estat¢s. Bi'andon House Limited holds a mixed-use assets. Bi'aAidoD House, part of which is rented out eominercially and thiis accounted for as an Investment, and parl of which is used for operational purposes and thus accounted foi. as a tangible fixcd asset. The principal risks are similar to the ones highlighted for the groiip in the section below. Brandon House Limited purchased investinent property of £6m diiring the y¢ar. The Charitablc company also received doiiations of £7.2m from Sarjudas foundation in the year. Page 5
Nill<aiitli Estates Report oftlie Tyuytees For the yeai" ended 31 St Deeeinbej. 2022 STRUCTURE, MANAGEMENT AND GOVERNANCE Govei'ning document Nilkallili Estates is a regist¢i'¢d Cliai'ity (iiuinbw 1148431) under the Charities Act 2011 and is a charitablc organisalion incorporated in E4ngland on 24 j[Y 2012 as a compai)y limited by giiai'anlee iii)dcr Company nuinber 08154119. The Chai'ity is contslIed by ils Eoverning documcnt. Memoizndutn aiid ticI¢S of Association. Trllstees There ivci'c 3 trLiStees dui'iiig the year. Tlie tiiistees liave responsibility formeetiiig the Gi'oiip'8 charitable obligations aiid objeelives. Chaiiges in Tiiislees duiiiig tlie yea]. arc provided below. Uiider the requiremeiils of the Memoi'andum and Ai'liclcb of Asso¢iatioi) of the Chai-ity, trustees are elected to serve for a pei'iod of three years afier wliich they inust be re*lecled. Subject to article 20A, the tiiislees m&y appoiiit new aiid additioiial tiiislees by a i'esoliitioii of the Tnistees pas5cd at a Trustee meeÉing. These individuals work aloiigside CX15tiiig Tlustees for a period of three years before being considered foi. appointtnent. Oiigoiiig Iratning is received by tlie trustees throiigh atlei)dance at coui'ses and beiiig piovidcd with relevaiit infonnalioi) fi'om varioiis i'esoiiyces, as I'equired. All tnistees give theii. tiiiie voliiiitaiily aiid receive llo itmiiiieratioii or beiiefiis fi'om the Chaiity- As the trustees al'e the key maiiagemeiil peIsonnel ot the Charity aiid are iiot I'einiinei'ated, thei'e is iio reniuiieiatioi) policy foT key management persoiin¢l. Operation The Board of Trustees, which can have up to 7 members. administers the Group. There is one fidl time ttee (Mr G P Patel) who is suppoi'led by two fvll-time admiiiists'atoi's appoii)led by the trustees to managc the day-to-day op¢ralioiis ofihe GTOUP. To facililale effeclive op¢ralions, tli¢ administralois have delegated authority, within terms of the delegation opproved by the Irusle¢s, for operational matters such as finance. Most Iwslees are already familiar with ilie prnctical work of the Group having bccn involved in varioiis activiti&s themselves as volunteers. Additioiially, newtriistees aTe invited and encoiiraged to allend a selies of Irainit)g sessions lo familiarise themselves with the Group and the coiitex¢withiii whicli it operates. These are joiiitly led by th¢ Chair of the Board of Tnl¢es. All tnislees give their time volllnl81ily and receive no remuneration or be]]efits fi'om Ihe Group. Attendance at board meetings The board meets when necessaiy but seeks to meet fortnighily at least. During the year, all trustees 8ttend¢d IOO/o of all meetings. Page 6
Nilkanth slates Report of the Trustees r4or tlie year ended 31, December 2022 Statement of Triislees? Responsibilities T])e Tiiisle¢s dr¢ Pubibl¢ fur i)I'¢Pdring th¢ Trustccs, Rcpoi'l, Ihc Groiip Stt'ategic Rcport and the consolidated financial ,qlalem¢nts iii accoi'daii¢e with applicable law and Uiiited Kiiigdom Accounting Standards Iunited Kingdom Gencrally Accepted Accoiinting Pi'aclice). Thc law api)li¢able lo charities ii) England & Wal¢5 I'equires the Trustees to pi'epare financial stateiiients for each finallcial year wliicli givc a true aiid fail. vicw of Ilie slatc of affairs of tlie Cl)ai'ily and the Gt'oup, aE)d of thc incoiniiig rcsources and application of resources of thc c.harity and tlic '0p foi. that pei'iod. In prcparing thcse finarAcial slalcments, tlie Trustees ali rcqiiired to.. sclecl 5uilable accouiilllig policics aiid thcn apply them coi)sisleiiily; observe the methods aiid piinciples iii the Charities Stateillent of Recommeiided Pi'actice on Accouiiting i)d Reportiiig., Inake judgements and esliinRt¢s that are reysoiiable aiid piudenl; slate whether applicable accoiiiiliiig slandai'ds have bccn followcd, siibject to any inaterial depaitsres disclosed and explained iii the fiiiancial stateinei)ts' pi'epai'e the finaiicial stalenieJ)ts oil the going concern basis unless it is ikiappropi'iate to piEsume Ihat the Charity will coiitiiiiie to opei'ale. Th¥ Trtisle¢s are respoiisible for Inaiiitainiiig adequatc accountii)g i'ecords that disclose with r¢asoiiable a¢1racY at ai)y liiiie the financial position of the Charity aiid thc Gi'oup aiid enable Ihein to ensui'e Ihe finaiicial statein¢iits comply with the Compaiiies Act 2006. They are also responsible for safeguarding the assets of thc Charity and the Group and heiice for taking reasonable steps for the prevention and delcction of fraud and other irregularities. Statemetkt #s to Disclosure of Information to Auditors The Trustees who wei'e in office on Ilie dhle of aPPiDval of Iheye financial statements have confii'med, as fai. as they arc aware, that Ihcre is no relevant audit inforn]ation of wliich the aiiditors al'e unaware. Each UF th¢ Trustces have coiifirmcd that they have taken all the steps that they ought to have takeii as Ti'ustees in order to make th¢mselves awarc of any rel¢vaiit audit iiiforn)atiott and to establi8h that il has been communicated to the Auditor. Public beneflt The trustees are miiidful olihe Charity Convni&sion's guidance oki piiblic bcnefit'charities and Public Benefiv and, in particular the supplementary guidaiice for charities whose aiins in¢ludc advancing religion'Th¢ Advancement of Religkon foi. the Publi¢ Benefit, and haiTe regard lo tliat guidaiire when Yeviewing the Group's aims and objectives and in plannittg fiitule aclivAties. We are coJ)fidenl Ihal. by providing financial resoiwces to support the work of BAPS and other similar ChltieS which share the common objective of advancement of the Akshar Purushottam Swaminarayan denoinination of the Hindu faith, we help to pi'oinote the faith more effectively, at a national level. and in individual centres, and that in doing so provide & benefit to the public by.. - providing faciliti¢s for public worship, sp&ritual, moral and iiitellecttial development both those who wish to benefit from what Ihe what the Group offers,. and tlu'ough ils support of BAPS, pi'omoling Hiiidii valiies and service by memE*rs of BAPS in and lo thcir commullities, to the bencfil of individuals and society as a whole. Events since the ettd of the year li)f0mtion rclating to evei)ts siiice the end of the year is given in th¢ notc5 to the financial statements. Page 7
Nilkanth states Repoj-t of the Tr115tees ri or tlie yeai. ended 31st December 2022 Related parties and relationships wFth other oi'ganisations Nilkdnili E48lal¢b IS I'¢lal¢d lu boili Sarjiidas Foundation lind BAPS Swaminarayan San51ha, aiid thei'e are a number of Inistees in common, and all three chariti¢q share thc same objeclivcs. In 2022, thc Charity reccivcd a donation Df £7.2m (2021 £Nil) from Saoudas FoE]Iiddtion and coiiliniied to pi'ovide BAPS witli pi'emi8&8 fi'om which lo Iiold congregatiDns etc in the advaiicement of Iheii. objeclivcs. BAPS occupies a iiumber of pi'opcities owned by Nilkanth Estates for which no rent is payable. Reference and adlllinisti'ative details Registered Company number: 08154119 (EnElaiid ai)d Wales) Registered Cliarity number: 1148431 Trustees: Mr. G.P Pal¢l Accouiilaiit Mi.. S J Kara Director of Sirategic Alliances- IT Services Mr K Bhattessa Hotelier Country of registration: England Auditors: MHA Sixth floor 2 London Wall Place London EC2Y SAU Prin¢ipRI Bankers: The Royal Bank of Scotland plc 354 Staiioll Road Harrow HAI 3XZ PLmjab National Bank (tnteinational) Limited 188 Ealing Road Wembley HAO 4QD Page 8
}i- Liidc.d .11 1)L'CL'JJibe.r 2V22 W("'l N ?I:-11 Allf)Il'()R% Page 9
Nilkanth Ei stales Report of the Independent Auditors For the yeai. ended 31, Deee)nbe7" 2022 Oplnion We have audited the financial slalements of Nilkanth Estates (the 'pareiit cbarilabl¢ cormpany,) alld ils subsidiary (tlie 'groiip') for tlie year ended 31 Decembei. 2022 whirh complisc thc ConsolEdaled and Cliarity Statement of Financik)l Activities, the CoLi80lidaled diid Chai-ily BJlance Sheets, thc Coiisolidated and Cliai'ity Stalcmcjil of Cash Flow5 ai)d notes to thc financial slatcmcnlg, including a siitlliiiaiy of sigllificai)t aL¢ounttiig policie8. Thc fit)8nctal rcpoi'liiig framcwoTk Iliat IS becn l& pplied in Ihcir prepatIOn is applicablc law <ind Uiiited Iliiigdom AccountinL' StandaR'ds, includiiig Financial Rcportiiig Siandai'd 102 TheFina17cioIRcpoi ling Siaiiddi'LI fwpliciible ihe UK<ind Repiiblic oflp-elaiid (Uiiiled Kiiigdom Gciici'ally A¢¢ept¢d Accoiiiiting Pr8cti¢e), Iii oui. opiiiioii the finaiicial slatsmenls.. give a true aiid fair view of the stale of the groiip's kii)d pareiit charilablc company's affaii's as al 31 Dc¢ember 2022, aiid of theii. incoining rcsoiirccs aiid applicatioii of i'esources, includii)g Iheii. ii)coine and expeiiditui'e, for the yeai. then ctided,. have beeii propei'ly prepai'ed in accordance with United Kiiigdom GeLiei'ally Accepted Accouliting P17Ctire,' an(1 have be¢n pr¢pai'ed in ac¢ordance ivith the requiirinents of the CoiMpanie8 Act 2006. Basis for opinion We ¢onducl¢d our audit in a¢¢oi'dance with liiteimational Standards on Auditing {UK) (ISAS (UK)) and applicable law. Oiir responsibilities under thos¢ standards ale furtiier described in the Aiiditor's Responsibilities for the aiidit of the filil¢la[ statements section of ow- i'epoil. We arc indepeiidei)t of the bry'OUP aiid parellt charitable company in a¢¢oi'dan¢e with Ili¢ ethical i'equirenients that are relevaiil lo oui- audit of the finai)cial 5tatcmciits in the IJK, including tlie FRC'% Ethical Stai)d&rd, and we have fullilled our oilier LihicaS r¢spoi)sibilities iii £lccordaiice with Ihese i'equiremeiils. We believe Iliat the audit evidenc we have obtaiiied is sufficient and appropriate lo provide a basis for Ol opinion. Concluslons relating to guing concern In auditing the financial statements, we havc concludcd that the Tiustees, use of the going conceni basis of acLOiU]liiigT in Ihe preparation ot the fmancial statements is appi'opiiate. Our evaluation of tlie Twstecg. assessmeiit of the entity'.s ability to continue to adopt the going conceii) basis of accounting inLluded critical reviews of tlieir tw'e investment strategy and expected investment inwme. Based on the WQTk we have perforn]ed, we have not identified any malciial uncertainties relating to events or Conditions that, individually or collectively, may cast significant doiibt on the oharitable company's ability to continue as a goitsg conccm for a peiiod of at least twelve months from when the [ancIal statcments are authorised for issue. Oui. responsibilities and the responsibiliti of th¢ TNstees witlirespectto going concern are de5ciibed Rnther¢levant sections of tbi8 report. Other informatlon The Ti'ustee5 irsponsible foi. the other infoiination. The oiha. iiifoiThalion compiises the infonn&tion included in the Amtual i'eport, othei. than the fitwcial stat¢meiits and Oill aiiditor's reportth.eOn. Olii. opiiiion i)n the financial statements docs not covci. the othei. ii)foimatiDn and, except to thc extent othenvise explicitly Blat¢d in our i'epolt, we do not expi'ess any fomi of a8suran¢e Conclilon tliereon. Page 10
Nilkantli Estate. RepoR't of the Independent AuditTri's Fur the yeai. e))ded 31st T)eceinber 2022 In coniieclion willi oiir audtt of the financial statements, our resk)onsibility is to rcad the other iiifonnalion and, in doiiig so, consid¢r wheilier the othei. infonnation is materially iiiconsi.%tenl with the fin¢iii¢ial stalcmeiits or oi l(nowlcdge obtained in Ilie audit or oihenvise appears to bc malcrially misslalcd. If we id¢nlify such rndterial inconsistellci&4 or appaiint mal¢rial mi%slat¢meiil.8, wc arc irqiiircd lo d¢lcrmine whetlier there is a material misslalement in the fii)811¢ial slaleinenls or a maleridl tnisstaleniciil of thc oihcr inforinalioii. If, based on tlic woi'k we have peifoi'med, we conclude tlidl tliere is a n]aterial misstatcincnt of this other infoi'nution. we are i'equired lo i'eport that fact. We have nothiiig to report in this regai'd. Opinion5 Qn other matters pyescribed by the Companies Act 2006 Iii our opinioii, based on lh¢ woyk undeytaken in the course of the audit.. tlie it)fonlliltioii giveii ii) thc I'iiistces, i'epoi't (iiiLOry)01?liiig the Dii'ectors, i'eport) for tlie financial year foi. which the fiiiaiicial slilteLneiits arc prcpared is consi51ciil with the fii)aiicial stateineiits. aiid Ihe'fiiistees, rep(>rt (iii¢orENli'atii)g the DiiELtors' i'eport) has keli prepared iii accoi'dai)ce with applicable legal i'¢qiiii'einents. Matters on Ivhich we are requlred to repoi't by exeeption In Ilic light of oiir knowlcdge and undcr51anding of th¢ groiip and parent charitable compa1)y and ils environment obtained in the course of the audit, we have iiot idlI1r1ed material misstalem¢nls iii the Dii'cctors, rq)ort. We have i)oihing to IEPOrt iii I'especl of Ilie following mattel's in relation to which the Compaiiies A¢t 2(M)6 tEquires lis lo report lo you if, in our opinion.. adeqiiate accounting iEcords h1& ve iioi been kept by the parail chaiitabl¢ Company, oi. retun)8 adeluate for our audit have not been rec.eived fiom braiiches iiol v151t¢d by us. oi. the parent chaiitable company's finEclaI stateinenls are not in agreement with the accoimting records and i'eturns. or certain disclosures of Dii'ectoi's, Kemiiiie¥ation specified by law are not made. or we have not received all the infon)kntion and explanations we require foi. our audit. Responsibilities olTriistees As explaiiied more fylly in the Tntee8, responsibilities slateinent iThcluded in the Ttees, Annual Rep(Trrt, the Trustec5 (who al'e also the Directors of tlie charitable company for the purposes of company law) .¢ responsiblc for the preparation of the financial statements ai)d foi beijkg satisfied that they give a ttue and lair view, and foi. su¢h inteinal control as the Tnislees detennine is ncccssaiy to enablc thc prcpai'alion of financial statements that ai"¢ free froin material misstatement, whether due to fraiid or eJTOi'. IJ) preparing the financial statements, tlie Trustees -e responsiblc for asscssing the giDup's and parent chai'ilable company's ability to contiiiue as a going concern, disc105ing, as applicable, matteiE I'elaled to going concern and Iising tlie going concein basi8 of accouiiting iinless tlie Ti'uslees either intend to liquidate Ilic '0up or thc pai'cnt chai'ilable ¢oinpany or lo cease opcrations, oi. liave no iralistic alieniative biit to do so. Page11
Nillianth li states Report of the Independent Auditors lor the year ended 31*t Deeeniber 21122 Aiiditoi s respon5ibilitie5 for the audit of the finaiiclal statements Oiii. objectives thie to obiatn iEagonable assuiznce about whciher th¢ fin2n¢ial statements as a whole are free from molei'ial misglatcmcnt, whcthcT duc to fraud oi. ciyor, and to issiie dn allditor's report that ii)¢ludes oiir opinion. Rcas01)dbl¢ a551u.ancc is a Ill Icvcl of assiiiancc, but is not a lat'antee that ali aiidit condiiclcd in d¢COI'daiicc willi ISAS (UK) will always dclccl a n]alci'ial misslalcmcnl wlien it cxists. Misstatements ¢an ai'ise from fraiid or enor and &l1'C con5ideiEd maleiial if, individiially or iii thc aggrcgale, Iliey coiild i'casonably iK expected to infliience the cconomic dccisions of users lakcn on the basis of tliese financial slatcmcnls. ItYegLilai'ities, incliidiiig fi'aud, are iiistan¢cs of noij-compliaiice with laws aiid i'egulations. We desi] procedures iii line with our iespoi)stbililies, OLiiliiied abovc, lo detect Matla1 Ini5Statetneiits in reSPLuI of iritgulai'ities, iiicludiiig fraLid. The specific proccdiTrcs foi. this eiigagemeijl ai)d the extellt to which these are capable of detectiiig iii'egularilies, iiicludiiig fraud is detailed below.. Obtainii)g ali uiidei'standiiig of the legal and regiilatory fi'amewoi'k5 that the entity op¢rates iii, fvcusing on those laws ai)d tEgiilatioiis that had a direct effect 011 the fiiiancial stalemeiils; Eiiquiry of those Lhai'ged with govei'iiaiice coii¢en)ing aiiy instaiices of kiiowii or suspected iiistances of fi'aud. Eiiquiry ofthose cliargcd with govcniakTrce coiiceri)ii)g actual and poteiitial liligdlion and claims; Bnquiiy of those chai'g¢d with governaiice coi)ceriiiiig any iiislaiices of nun-coinpliance with laws aiid Irgiilaliot)s' Reviewiiig the design and implementalioii of control systems in place. Testing thc opetalional effcclivene5s of the coiilrols,. Perfoi'ming aiidit work over the risk of managemenl ovenide of controls, including testing ofjournal eiitiies and othei. adjiislments for appropi'iateness- EvaIltIng1]Ie biisiiiess rationale of significant transactions oiitside the noniial Course of biisiness and i'cviewii)g accowiting estimates foi. bias; Rcvicwing mii)iile8 of meetings of those charged with goveniaiice. Reviewing fiiiancial slalemenl disclosui'es and le61ing lo siipporting do¢wnentaÉion to assess ¢omplian¢e with app.licable laws and reiltions. Becaiise of the iither¢nl limitations of ali audit, there is a risk that we will iiot detect all i]Tegularities, including those leadiiig to a material misstatement in the financial slatenienls oriion-compliance with regulation. This i'isk in¢i'eases tlie mol'e that compliance with a law or i'egulalion is i'cmoved fi'om th¢ events aiid tt'ansactions reflected in the fmancial statemei)ts, as we 11] be less lik¢ly to become aware of instanc¢s of non-coAnplian¢e. The risk is also greater regardiiig irrcgularitics occuning duc to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omissioii or misrepres¢nt&tion. A further description of oui. responsibilities for the aiidit of Ilie financial statements is located on the Financial Reporting Council's website at.. https.'Ih4wnv.fir.org.uk/Our-WorklAudiVAudit-and-assurancelStandards-and- guidallce/Standards-and-guidance-foi'_aiidilorslAuditOTS-responsibilities-for-aiiditll)escriptioii-of4uditors- respoiisibilities-for-aiidit.aspx. This description fonns part of our auditor's report. Use of tliis report This i'eport is made solely to the charitable company's menibers, as a body, in a¢cordanee with Chapt¢T 3 of Part 16 of the Companies Act 2006. Oiir audit woi'k has been undei1aken so that we misht state to the charitable company's member8 those matters we 'e reqiiired lo slate to them in an auditoi s repoit and foi. no other puryose. To the fullest exleiil pei'mitted by law, we do iiot a¢cepl or assum¢ responsibility lo anyoiie odiei. than the charitable company and the chaiilable coinpaiiy's members as a body. foi. oiii. aiidit woi'k, for this i'eport, orfor thc opinions we have foiined. Page 12
Trlilkalltli Estates Report of the Independent Auditors For the yeai- ended .iJsI December 2022 Sudhir Singli FCA {S¢iiior Stattitory Aiidilor) For and oil bel)alf of MHA, Sldtiiloiy Aiiditor Indon, United I(ingdom Date= 29 September 2023 MHA 15 the ts'adiiig iiame of Mllcliit'e Hudsoi) LLP, a limiled liability partiiership iii Ei)glaiid hiid Wales (registered iiiimber OC312313) Page 13
Nilk¢qntli Ei state5 Coiisolidated and Charity Statement of Financial Aclivitics {incorpuratiiig an income aiid expendiliiie #Cclbliiit) r4OY tl)e year ende<l Ilst Deceinl)ei' 2022 The Group rtrestrACted fiinds 2022 2021 The ChRrity Iini'estricted fund5 2022 2021 Notes 1CoMe froin: Donations and legacies Inv¢slment incoine Other 7,661,452 1,461,097 782,449 461,452 1,061,098 782,449 1,320,930 636,871 1,054,262 636,1171 Tot#1 Income 9,904,998 1,957,801 2,304,999 1,691,133 Expemditure on: Raising fiinds Chai'ilable activiti¥s'. Pi'ovision of facilities 368,018 171,369 347,683 159,779 1,214,40S 1,079,971 1,185,705 1,051,577 Total expenditure 1,582,423 1,251,340 1,533,388 1,2kl,356 r4et ineome befoi'e net losses on Investments 8,322,575 706,461 771,611 479,777 Gasiis on rev21iiatioii and reelassific&tion of 12113 fixed assels 3,829,IIK) 540,000 3,829,100 540,000 Net movement In funds 12,151,675 1,246,461 4,600 711 1,019777 Fiinds brought forward 88,216,830 86,970,369 84,473,457 83,453,680 Fvnds carried fonyard 18 IOOJ68,505 88,216,830 89,074,168 84,473,457 The total fiu]ds of tlic CoTE]Pa¥ky were UnltI]Cted. There were no restricted or designated fvnds dwing Ihc year or for Ilic previoiis year. All of the above results Are derived fi'om colltinuing activilies. Tlierc W¢ no reco8ni8ed gains or losses other than ihos¢ stated above. The apnded notes for part of these accoimts. r4iikaMth Estates Page 14
21122 •.1,451.-1511 ?4.8()6.V&l -311,119N,O21> ?li.I??.SX j ?¥..i?? 4xs 1ixt(l U%L a%%CI¥ 14 96,1121.21 %4,1)311..3¥7 78,.147.411 C.'urretit 2,032.114.1 ?12.741 3,1 &4.?110 ¥.q¥o,yi)I 2.426,YXII 4,712.114 17 {363_1441 4.147.294 3 2R6.441 10.726.7£5 1110.l()R.S1 x'x.? I h.,s_11 111).1174.1fi11 4.47.1'.4i7 ioo.-368.511. 8.211>.Y.111 111).074,1(116 X4.47.1.457 Fujids: IUO.361LS11.5 8 ?16,Slll 119.074.168 4.47.1.417 89.1)74.l6¥ 84.47.1.4.57 'I'lic appcndoil iiiite% Inni) i)art i)I'IIiLv ¥il)iii)ls. hehaifby.. Ti'ustee rusi¢¢ Pag6 15
Nilkantli Estates Consolidated And Charity Statenient ot. CAslI Floivs For the }'eai' en(led 31 Deeeniber 21)22 The Groiip 2022 The ClIArlty 2022 2021 2021 Note5 Net cash proi'ided byl operating activities 19 7,628,102 1.289,909 1,750,908 1,535,967 Cash flows from investing activities: Dividends, intei'esl, and I'enls received fi'oni investments Piiicliasc of tai)giblc fixed assets Puirhase of investment pn)peity PIDceeds fiDm sale olFIH Pi'opeity (62,966} (223,375) (8,541,756) (1.466,323} 472,936 907,808 (62,966) {223,374) {2,539,801) {1,466,323} 472,936 907,808 Nel cash provt(Icd byJ(used ill) investing activitics (8,l31,786) (781,890) (2,129,831) (781,889) Change in cAsl) And cAsh equii'alents in the year (503,684) 508,019 (374923) 754,078 Cash attd cash equivalents at the b¢giiining of the year 3,184,290 2,676271 2,805,903 2,051,825 Cash and cash equivalents at the end of the year 2,680,606 3,184.290 2,426,98 2,805,903 ANALYSJS OF CHANGES IN N£1 T DEBT Asa131 Decem1. 2022 Asaiol Janiiary 2022 Group Cash flows Cash at bank and in hai)d 3,184.290 {503.684) 2,680,606 3,184,290 (503,684) 2,680,606 Charity Cath at bank and in haiid 2,805.903 {378,923) 2,426,980 2,805,903 (378,923) 2,426,980 Page 16
Nilliaiitli Estates Notes to the Consolidated financial state.Inents rior tlie yeAr eiiile(131 Deceiiiber 2022 Aceoiinting policies Basi5 of preparation T]1¢ fiiiaiicial statcittcnt8 of the eh£iritAblc company, have becii prepared tn aecoi'dance with the Charities SORP (FRS 102) 'Arcouiiting and Reporting, by Chaiities.. Statem¢i)t of Recomn)ended Practice applicable to chaL'Sties prepariiig tlieir aceounts in aecoi"danLe witli the Fini2ncial R¢i)Drting StiinddrLI applicable in the UK and RepiiblTC of li"¢laiid (FRS 102) (l5.11£d iii October 20191,, Fiiiaiicial Repoiting St*ndard 102 'Th¢ Finaiicial Repoiting Staiid81"d applieable in the UK &nd Repiibltc of .elaT1d, and the Compaiiies Aet 2006. The finallcial statemetsts have be¢ii piEpaiEd under the hi.storical cost convcntioii, as modified by the revalualioii of cei1ain assets. (%) The ftinctioii&l and pr¢sentation ciirrency is UK Poiind Sterling (£)- These financial statements consolidate the kEsu115 of th¢ Cliai'ity and ils wholly-conli'olled subsidiary on a line by linc bgsi5. Ti'aTLsactions and balanfje5 between tli¢ chl.]ty and its siib8idiaiy have b¢en ellminated fiom the on501idat¢d financial statements, Balances between the ctLtitÉ¢s di6¢losed in th¢ iiotes of th¢ Charity's balance sheet. (b) Puhlie benefit entity Thc Charity aiid ils wholly-coiiti'olltd SLibsidiaiy mcct th# d¢finilion of a public benefit entity under Chai'ities SORP (FRS 102). {c} Going concern Tlie majoi.ity of Ili¢ ill¢onie re¢¢iv¢d from by the Groiip is inveslmeiit income fi'om ils investment pi'opcity portfolio which air Icl lo social housing pi'oviders. The Gyoiip hos continiLed to receive in¢ome bas¢d on its investment in piDpcitics oyci. tlic year&. The Charity has miniiiial on-going Icgal or consmiclive commitments. Thei'e are llo icerta]ll¢s, mat¢]ial QT Oth¢rwise, Irgarding Ihc Groiip'$ going concern. The ttustees tlierefore have itasonable expectation that the Gi'oiip has ad¢quate resources to continue in opei3tioiial exi51encc for Ihc for¢s¢eable futtii'e which exceeds 12 months from th¢ date of sigiiing of th¢ financial statements and thcrcforc continue lo adopt th¢ going concern basi5 of awouttting in preI]ng the annual consolidated financig15tat¢mcnls. (d) Income All income is recogniscd Èn th¢ Statcment of Financial Activities once the Group hds entitlcment to the fi]nds, il is probable that ihe income will be re¢eiv¢d and that the amoiint can be measur¢d Keliably. Voliintary incoiTJe compi'ises reveniies g¢n¢rat¢d froFn various fom]8 of don8tions. Invc5tsncnt income ineliides incoine generat1 from property inv¢¢1 and ititerest received on ca$li deposits. (e) Donatlons of gifts, services and f2¢ilitleg Donated professional services and donated fAcilities ar¢ gnised as incoine whcn the group has control ov¢r the ilcm or re¢¢iv¢d tli¢ s¢rvi¢¢, any conditions asyocialed with the donation havc be¢n mel. the receipt of econoniic bcncfil from tlie iise by the gi'oiip of the item is pi'obable and tlial ¢conomi¢ benefit can be m¢asiired rcliably. In accoi'dance with the Cliarilie5 SORP (FRS 102), voliinteci. time is not r¢¢ogtiised so ref£i' to the tn151¢¢s' anttiial report for more information al?oiit thcir eontribulion. On iEceipt. donated gifts, profc8$ional S¢1¢¢S and donated facilities are rccogijised on t]ie basis of tl)e valiie of the gift to tlie groiip which is thc aiiiount the giDup would have been williiig to pay to oblaiii services or farilities of equivalent cconomic bcn¢fit on the open market. a corresponding amount is then recognised in expcndittii'e in the period of receipt. Page 17
Nilkanth Ei states Tr4otes fo She Consolidated finailcial statejnents Foi- tlie year enile(131 December 2U22 Aeeounting polieies (contiiiiied) (D Expendiliiye and irrecoverable VAT Exi)enditui'e iq recognised once there is a legal or constructive obligation lo make a P<?yment to a third party, it is probable that settlemellt will be requircd at]d the amount of tlie obligatioii can be measured ieliably. ExpenditLire is classilied iindei. the following aLtivity headiiigs.. Costs ofi?ising fuiids ielale to tlie investment management Costs. Expendittire on charitable activities ii)¢liides the costs of activities undeilak¢n to ILlI'ilicr the piirp05es of tlie Cliarity and thciy associated siippoil Costs in¢luding govekiiancc costs aiid deprecidliun ot tangible fixed assets. Expeiidittire is accoiiiited foi. on ali aeeruals basis aiid has been classified uiider hcadiilgs that aggregate all cost Iclatcd to tli¥ categoi"y. WheiE costs cailliot be directly alliibuted lo particulai. hcadings they have bccn allocaled lo activities on a ba515 coiisislent with the use of resources. 'iEcoveible VAT is chliged as a cost against lh¢ aclivity for whicli the cxpenditure was iiicurred. AIIocAtlon of suppui't cost5 All siipport Losts al'e allocated to the expenditure on charitable dctivities as none of ilies¢ Costs are Allocabl¢ to th¢ co3t3 of raising fiind5, which are the invcstmcnt inaiiagement costs. Support cogls include govenian¢¢ costs, wliich are the costs associated with the govei'nanc¢ prrangements of Ille Cl)orily. Th¢5¢ Costs ait associated iyith constitutional and slattitory requirenict]Is and includ¢ any costs associalcd with die 8ti'tttegic management of the groiip's aclivitics, (h) Taxation The gn)up is exempt fiDm corporation tax on tts ch8ritabl¢ activities. (i) 'I'angible fixed assets It¢ins of equipment are capitalised where the purchase pricc ¢x¢¢¢cls £500. Depreciation ¢osts are allocat¢d to activities on the basi5 of Ilic us¢ of th¢ related assets in thos¢ activities. Assets al'e reviewcd foi. imp8iinient if ¢irciim5tsnce5 indicat¢ th¢ir ¢2trying valiie May exceed their net realisablc vali1¢ aiid valuc in us¢. DepLrcialion 15 providcd at rates calculated to wrÉte down Ilie cost of ¢a¢h asset to 115 Cstimated residual value over ils expe¢t¢d us¢fiil li(¢. The depreciation rates in us¢ arc as follows: Freehold buildings 2% oncost Freehold land is not d¢pre¢ial¢d. ti) Investment properties IDve5tm¢nl pi'op¢rti¢s al'e measiired al fair value at cacli rcporting dat¢ and are not dcprc¢iated. Cash inv¢slments C2sh lield in fixed temi deposit accounts ¢Kceeding oli¢ y¢ar are classified as fixcd asset ittvestments as th¢y ar¢ gen¢i'ally held with the oveiall intention of long terin retention foi. the continuing b¢nefit of the group in the fonn of in¢ome and capital appiEcialion. (li) Debtors Trade wid other debtors are recognised al Ilic scttlcincnl amouiit diie aficraiiy tradediscountoffered. PIEpaynients are valuEd al Ili¢ amounl pr¢pyid net of aiiy ts'adc discounts due. Page 18
Tr4ilkaiith Estates Trlotes to the Consolidated tinancial staten)ents rior tlle yeai. L'iiil¢(131 December 2022 Aeeoiijitlng pollcles (continued) Loans whi¢h h8ve be¢1) pi'ovided with an int¢r¢st ral¢ bclow the market rate and for ch£il'itabl¢ PLll'P05C5 are deemed Lofftcegsionary ltsaijs. {1) Csli bank and in Cash at bank and cash in hand incliide8 cash 8E]d 51ioi't teiin highly liquid invegtments with a 5hoil maliii'ity of tIEe months oi. less fi'om the date of 1lCqiiiSition oi" openEng of the deposit 01 similai" dccoiint. Cash balancas excliide aiiy fiinds lield on behalf Df seiwice useiE. (In) Creditors and provisions Cieditors and pi'ovisions are recognised wli¢r¢ th¢ group has a pi-eseiil obligation iEsulting fj'om a past eveiit that will probably i'esLIII in ihe Iransfei. of tuiiils to a thii'd party aiid the aniounl due to settlc thc abligati()n can be measiiitd oi. estimk)ted i'eliably. Ci'editoi's and provision5 noEinally irco8nis¢d at theii. settlctllent amoiinl after alloThiing foi. any trade discoiiiits diie. Tlie gi'oiip only has finaiieial assets aiid fiiiancial li8bilities of a kind that qualify as basic financial inslruEnenls. Basic financial iiistLYments al'e ii)itially i'ecognised at tl'ansaction value and subseqiiently me#ired at theii. setrleinent valiie Miith the exception of bank loans whi¢li are siibsequeiitly measured at É¥niortised cost iising the elTeLtLV¢ int¢rcst meihod. (n) Fund accounting Unrestii¢led fiinds ¢ai) be used in accordance with the charitable objecliv¢s at the discretion of the trL)slees. Restt'ictcd fvnds Can only b¢ used for paiticulai. Irstrict¢d puTrose$ witliin the objects of thc Charity. Restrictions ari5¢ wh¢J) spccificd by the donoi. oi. when fvnds are raised for partiGulai'restricted purposes. Critical c¢ounting estimxtes and jlldgements The GiY)iip mak¢5 Ccrtain ¢stimates and assumptions regaYdit)g tlie future. Estimat¢s judLFemcnts are co2itinually eipaluatedbaged on l)istorical experience and othFr factors, inLluding the expectations of tUre ¢v¢nls that aiE believed lo be rea50nabl¢ Ilnder the circEimstanc¢s. In Ihc fiittire, aettl experienc¢ may diff¢i' from these estimates and assumplioi)s. The estimates and assumptions ihal liav¢ 8 sisnificaiit risk of causing a material adjusthienl to the carrying amoiints of assets aiid liabililies within th¢ i)ext financial year ar¢ disc[Sed below: In>YsliiiÉni provIl£S Investmcnl pi'opcitics whos¢ fair valiie canbemeasiircd rcliably without iindLie costoreffort shoiildb¢ mcasured at fair N'alue at the year end ivith any changes in fail. value recognised iti tlie statcmcnt ot financial activities. Th¢ investtn¢iit properties have been valued by the trustee5 al th¢ PEriod-end based on thcir knowledge of the pIDp¢rti¢s and tlieir location and liaving condiicfrd infonnal market i'eseairh considcring comparable properties. Following their assessment, they Iiave Concluded Ilial th"¢ lias been no lllatcrial ¢hange in the fair vglue sin¢e the previo1 valiiation, witli the exception of oli¢ investn)en¢ property whose fau. valiie is considei'ed to have inrTeased by £2.6m since the pirvious year-end, following an independent valithtion by RICS-a¢credil cliartered suiveyor. A change in the assumptions i¢d by tlie tNstees iiiay r¢5111t in a change the valiic of invesin)eiit piY)perties. Page 19
Nillvaiitli Estates Notes to tlie Cons01id#ted financial stateinents For the year eii(led 31 Deeembei. 2021 Critical accounting estin]ates and judgements, continued FreeholdProperty The Group and the Charity liold treehold land and bLiilding5. The fteehold buildings ait depreciated over aperiod of50 yearb ivhilst land is not depreciated ils valiie is iiot likely to diminish ovei. time. Th¢ GIDUP callies out I'egulai. mau]tenance of its fr¢¢liold properties and thei'efoir it is likely that the useful lives of the PiDpeity may exceed 50 yea1%. Th¢ liustces Iiav¢ b¢cn qUilt, in the abseiicc of a.4plit of purchase cost, lo estÉmate the allocatioii of the cost of Iliese pi'operties between the i'elative elemeii15 attEibutable to land, whtcll is iiot deprecial¢d, ancl bLiildsiigs. HaviiiBI Lvllbiilt¢d willi pruperty professtsonals, considered glattitoiy provisions. and researchcd market factors, the li"Iistc¢s considci. 300/0 of tlie a¢qiiisition cost of each tangiblc fixed asset to rcpresent land and 70 /0 to irpi'e5cnt biiildii)Lrs. As su¢h, 30/0 orth¢ cost of ¢ach tangiblc fJx¢d asset property is not d¢pr¢¢iated. In¢ome fi'om donations and legacies Group Cliyrity 2022 2021 21)22 2021 Donations 7.661.452 461,452 Income from investments Group Charity 2022 2021 2022 2021 Rental income- operaling leases 1,461,097 1,320,930 1,061,098 1,054,262 1,461,097 1,320,930 1,061,098 1,054,262 other Ineome Group Charity 2022 2021 2022 2021 Profit on disposal of fixed ass¢ts Insurance incom¢ 322,561 459.888 636,87 322,561 459,888 636,871 782,449 636,871 782,449 636,871 Page 20
Nilkantli states Notes to tlie C011501idated fiiianeial statements Fur the year cnded 31 Deceniber 2022 Cost ol. raising fiinds - investment nianagement Costs Croup Charity 2022 2021 2022 2021 Rates Gas and electticity Repairs and Mainteiiance li)sui'aiice Consiiliancy fees Bank chaiges Siindrics {837) 53,737 200,38U 72,956 41,497 259 26 412 16,873 75,146 57,335 20,958 469 176 324 37,062 200,380 69,300 40,360 244 13 7,651 75,146 55,435 20,958 426 163 368,018 171,369 347,683 159,779 Expenditiire charitable activities Group Charity 2022 2021 2022 2021 PIDvision of facilities Governance costs (See note 8) 1,192,625 21,780 1,050,752 29,219 1,168,545 17,160 1,026,672 24,905 1,214,405 1,079,971 1,185,705 1.051,577 All the above $t$ are support costs. Govemance costs r¢pi'esent ailIOrs, remuneration only. Net Èncomel{expendlture) for the year Nel in¢ome/(expendittire) for the year is stated after ¢hftrging'. Group Cliarity 2022 2021 2022 2021 Depreciation of fixed assets- owned Aiiditors, remimei'ation (incliiding VATI.. 1,192,625 21,780 1,050.752 29,219 1,168,545 17,160 1,026,672 24.905 Stiff costs Tlie th'oup does not have any employee8. Its triislcc5 Rr¢ T¢Sponsible for tlie governance of die Groiip and give their time freely. Voluntecrs. iiicliidilig employees of The SaLjLidas Foundation ond 13APS Charities, 'manage" the day-to-day operdtion5 of Ilie Group. Whilbl Ihe natLll'e of tlie voliintecis, tim¢ is not conSided gcn¢r81. thc monetary valiie of tiieiT tt.me is not Considered matei'ial and thus not recognised in thc arcounts. Page 21
Nilkiijilli Ei sl#tL',S Notes to tl)e CoIisoli(lafred finaiiclal sfatenients ri0i- the.year enile1131 Decenibcr 2022 io. Triistees, remiinei'ation and expenses Neither the Chaiily liustees nor the dii'ecioi"s of the subsidiaiy We paEd any remuiiei'atinn, Iior did they receive any oth¢i' benefit5 fi.om employni¢iil witli the Gi'oiip in the yeai. (2021.. £nil). No Chai'ity triiske i'eceivedpayment fui. i)iofe%sioiial or otliei" sei"vi¢es SLipplied to the C'harity {2021'. £nil). No ttte expenses were it)CLIITed ill tlie yeay {2021.. £nil). Taxation Th¢ &FI'04LP is ¢xenii)I from ¢OEyoIHlioi) tax as all ils incotn¢ is charitable and is applied foi. cl)aiitable piiiposes. 12. Tangible fixed assets Assets Fr¢¢hold Iiiider I'o ctsiisttiJcli()n cr Total C05t Al 5tait of the year Additions Disposals Reclassification 64.152,525 235,722 64,388,247 62,966 62,966 (298,834) 9,718,411 (298,834) 9,718,411 At end of the year 73,572,102 298,688 73.870.790 reeiation At start of the year Chai'ge foi t]ie yeai. Disposals R¢rlassificatiDn 17.780,446 1,192,625 (148,459) (77,012) 17,780.446 ,192,625 (148.459) (77.012) At end of the year 18.747,600 18,747,600 r4et Book Values: At eiid of the year 54,824,502 298,688 55,123,190 At stait ofthe year 46,372,080 235,722 46,607,801 Incliidcd in cost or valiiation of latsd and buildiii8s is freeliold land of £959.173 (2021- £959.173) whicli is not depreciated. Diiriiw tlic year, the Charity reCIatfIed three of its propertics,. two tangible fixed as8ets began being l¢l to rental iiicom¢. and on¢ illY¢btin¢nt properly stal'ted bcing iiscd to tuither thc Charity's objectLVCS. Upoii the rcclassifi¢ktioii of the investmcnt property to a tangible fix¢d abs¢t, Ilitt Cliarily ass¢sscd its fair valu2tLDlI Wlth thc 8%Si8tan¢e of a IUCS-accTedited chai'led suivcyor. As a result of this assessmeiil. a gaill on ¢laSsIfICation of £4.000,000 lths be¢n re¢ognised iii ibese accoutils. Page 22
Iyllkanth Estates Note5 to fhe Consolidated fjiiancial state.Inents Foi- tlie yeai- eniled 31 DeeeiiibLY 2022 12. Tangible tixed assets (Cont'd) Charity Assets iiiider conshu¢lion Fi'eeliol(f Tota Cost At stait of the yeai. Additions Disposals RlaSsification 62,432,525 235,722 62,668,247 62,96C) 62,9C)6 (298,834) 9,718,411 (298,834) 9,718.411 At end of the year 71,852,I02 298,688 72,150,790 reciAtion At stai't of the yeai. ChiiiEe foi. the year Disposals Reclassification 17,756,366 1,168,545 (148,459) (77,012) 17,756,366 1.168,545 (148,459) (77,0121 At end of the ye4r 18,699,440 18,699,440 Net Book VAliies: At end ol. the yeAr 53.152,062 298,688 53,451 J50 At start of lh¢ y¢ar 44,676,159 235,722 44,911,881 13. Investment propertie5 Tlie Group 2021 The Chai'ity 2022 2021 2022 Market value At %lart of thc y¢¢lr Addition5 Revaluation R#las5ifs¢ation 28,322,585 8,541,757 {170,899) (5,795,423) 26,316,262 28,322.585 26J16,262 1,466,323 2,539.801 1,466,323 540,000 (170,899) 540,000 (5,795,423) At end of the year 30,898,020 28,322,585 24,896,064 28,322,585 Investment propcrties with an original cost of £26.539m have been valued at £30.898m by tlie trustees. The ttstees of the Group performed an assessincThl of th¢ market valiie of its invcstment propertics at tl)e year- end. The tnist¢¢s r¢vi¢wcd th¢ pir5¢ntation of the Bi'andon House pi'opety al 31 D¢¢ember 2020. Thcy iEas5essed the pi'csciitatioii an(Iconsidffl'ed il a Inix¢d-iis¢ ass¢¢ the inveslmeiil part ofwliicli is reco)18ed at year-end fairvalue (see Nolc 14 bclow}. Page 23
Tr4ilkantli Estates Notes to the Consolidated tiiianeiol statenients rial. tlle year eiideil 31 Deceinbei. 2022 14. Mixed-use ussets Tlie Croup 2021 The Charity 2022 2021 2022 Fair value At start of tlie year i 0,10,00 io,000,i)00 At td of thtt year J 0,000,000 ID,000,000 Th¢ tiiisi¢¢s of th¢ giDilP reviewed the fair valiie ot'the clcmciit of the Brandon House pwperty which is iised for investment piiiposes at 31 Decembei. 2020. An infomul v01uation from a RICS-accirdile(I PlDpeity advisoi. at this date atti'ibuted a tsir value of £IOm to tlie piopoi'tion of thc buildiiig let conimei'cially, and tlie gain in vali1¢ was recogtTri5ed in th¢ SOFA. Tlic ¢iiist¢¢s of tl)¢ giY)up peifoTmed an as8csgment of tl)e market value of thi.8 pi'op¢rty ¢lt 31 Deccnibei. 2022 and did not consider a revaluation necessary. 15. Investments in siibsidiarie8 Nilk2ntb Estates controls lo/9 ofa cl)ai'itable coimpany? Bi?iidon Hous¢ Limited (Reg. Charity no. 1172517 and Company no. 10612051), which was in¢oipoi'ated Èn Englaiid and Wales on 9 February 2017. Brandon House LiJnil¢d is a company limit¢d by 78[antee. Itowjis thire light industrial unils aiid BeddiIigton Conferenc¢ C¢ntre ('BCC'). The indiistt'ial iinits have en rented oiil lo a siiigle l¢iiant on a 10-year lease at an initial i'enl of £200.noD for the fi( yr i'ising to £400,000 fi'om the second ycar with rent I'eview after 5 years. A summary of the financial stst¢ni¢nts of the Clwity's sub5idiary> BIAndon House Limited is shown below.. Statement of finan¢ial a¢tivitie$ 2022 2021 Ineonie and Endowments from: Donations and Icgacic5 InvcstTri¢ni incomc 7.200.000 399,999 266,667 Total income 7,599,999 266,667 Kxpendlture: on raising ftinds (49,037) (39,984) Total expendittwe (49,037) (39,984) Net Ineome/(expendlture) 7,550,963 226,683 Page 24
Nilliaiitli states Notes to the Coiisolidated financiAI 5tateTnents r401- tlie year ended 31 December 2022 Balance sbeet 2022 2021 Tangible assets Investinent piY)perties Mixed iise assets Cuix'ent assets Creditors due within one year 'cditois due aflei. Inoi'e tliaii oiie year 1,671,840 6,001,95(1 i o,uoo,000 10,000,noo 1,638,929 561,128 {84,138) (79,425) (8,213,251) (8,713,251} 1,695,920 Net assets 11,015,336 3,464,372 16. Debtors Group 2021 Charity 2022 2022 2021 Amoiiiits falling diie within one year.. Ti'ade Debtoys Other debtors VAT IEcovei'able Prepayments & accrned income 19,002 166,301 1,200,IX)O 646,740 16,440 216,301 50,000 646,740 2,1132,043 232,741 646,740 50,OIMI Amoiint$ falling diie aftermote than one year.. Con¢¢ssionary loan 7.934,251 8.434,251 Agy'egate #mounts 2,032,043 232,741 8580,991 8,484.251 Nilkanth Eststcs provid¢d a loan to Ils subsidiary, BrandonHoiisc Lin)ilcd. of £8201.331 in 2017 for the purchase of tlie siibsidiary's propeity and to thrther both entities. cliaritable objecliv¢s. The loan.. incurrcd interest ut 30/ p¢r annum up unt1 31 D¢¢¥mber 2020 after which loan becaliic iiilcrcst tree. is seeiiiEd against the property. is r¢p2yable on deinanl Ihoiigh Ilie parent Charity haspi'ovided assiwances that it will notbe irpayablc until al least oli¢ y¢ar from 31 Deceinber 2022. 17. Creditors: Amounts falling due iyithin olle year Group Charity 2022 2021 2022 2021 Trad¢ cr¢ditors Otlier creditors Accruals 263.728 97,006 4,620 40,129 90,459 251,266 29,950 27,615 23.548 365J54 130,588 281,216 51.163 Page 25
Nilliantli Ei stales Notes to tlie Consvlidated liiianeial statenienls rior tlie yeai. cnded 31 Dcccinbcr 2022 18. Fiinds Tlie Group 2021 The CliarSty 2022 2021 2022 U)iYestricted funds At blart of Ili¢ y¢ar Jncomiiig i'esoiirces Resviii"c¢s ¢xp¢nded Gaiii oil revdluation ol'tixed assets 88,216,830 9,904.998 (1,582,423) 3,829,1(Xl 86,970,369 84.473,457 83,453,680 1,957,801 2,304,999 1,691,133 (1,251,34ti) (1,533.388) (1.211,356) 540,000 3,829.100 540,000 At end of tlie year 100,368,505 83,216,830 89,074,168 84,473,457 19. Retihn¢ili#tion of net ineoniel(expendlture} to net c#sh lloiv from operatlng activities Gi'nup Charity 2022 2021 2022 2021 Net income for the repoi1ing period 12,151.674 as per stAtement orrillancial xclivilies) D¢pCIatIon 1.192,625 {Gain)Iloss on investnieiits 170,899 (Gain)nDss on r¢valiiation of fjxed assets (4,000,(N)o) Profit on digposal of tangible fixed assets (322,561) (In6r¢ase)/ile¥rease in debtors (1,799,302) (Dcci'¢a$eyin¢rease iii ClEditor.8 234,766 1,246,461 4,600,711 1,019,777 1,050,752 (540,OL)O) 1,168,545 170,900 (4,000,000) (322,5611 {96,740) 230,053 1,026,672 (540,000) (636,871) 189.557 (19.990) (636,871} 684,271 (17,882) Net cash provided byl(used in) operating activities 7,628,101 1,289,909 1,750,908 1.535,967 20. Related party transAcdoi15 Tl)e Groiip lias provided opei'ational and inveslmcnt propeities with a canying vali1¢ of £44.60ni to Tlie Sarjiidas FoldatIon laiid ils wholly owned subsidiaries nnd gi'oup undertakings) and BAPS Cliarittes rent- fl'ee, for a nominal i'ellt amount, oi. on 811 arm's lengtli basis. Tlic SaTjudas Foundation and BAPS Charities have the same aims and objecliv¢s and thc same benefieiai'ies as Nilkanth Eslal¢s. Th¢re arc also ¢OAI)moti tnisteeddii'ectors among tlie Il)r¢e enlitics. Brandon EIousc Limitcd a150 uiw¢stricted donatioi)s amountii)g to £7.2m (2021.. £Nil) from Th¢ Saijiidas Fouiidation during the yeat. Page 26
rlilkanth stntes Notes to the Consolidateil ftiiiancial slatcmo.iits rior the year ended 31 December 2022 20. Related party tr#nsa¢tlons {¢ontlniied) In 2017, Nilkanth Estates provided a ¢oiicessioE)aiy loan of £8,271,331 to Bi?ndon Ilouse Limited, its. wholly" conti'olled 511bsi(liary. Of this loan, £8,201,331 Wc1S u8ed to fun(1 the pur¢hase of tlie inve8lmeiit property held by tliis company. Inteicst Dn the loan wds cliaiged ii t 30/0 per anE]iim lip Lintil 3 1st December 202D, and hag been intei'est fi'ee since. The lo&n is repayabl¢ on an indet¢iminatc pei"iad. Nilkaiiih Estates has also i)rovided financial siippoi't lo Brandon Hoiise Limited so that the lattci. I'emains a going conccm. 2022 2021 Balancc irc¢ivablc fi'on1 Bi'an(loii House Ltd Impaiimenl pi'ovision Repaymeiil 9,213,251 {279,000) 9,213,251 (279,(KJO) 21. IKgal stRtus of the Charity and its Subsidlary The Charity is a comp41ny limited by ginIc¢ and has no sliarc capilal. Ils r¢gistered office addr¢ss Is I Praniiikh Swanii Road, Neasdeii, London NWIQ 8HW. In the event of a windiiig up of Ilie company, the liability of the tnistees who are also the membeis of the comp4)ny is litnited to £1. Its siib3idiary, Brdtsdon Holl Limitcd, is also a company liniited by guaranlffjhas Tho share capital and 15 also a registettd Chariry. Nilkantli Estates is the sole rncmb¢r of BKandon House Limited aiid the fonn¢r's li&bility in th¥ ¢Y¢nt ora winding up is limited to £1. Thc i'egisteitd office address of the Subsidiary is Brandon Housc, 104 College Road, Haii'ow HAI IBQ, Page 27