REGISTERED COMPANY NUMBER: 08154119 (England and Walos) REGISTERED CHARITY NUMBER: 1148431 Group Strategie Report, Report of the Trustees and Audited Consolidated Financial Statements For the year ended 31" December 2023 for NILIL4NTH ESTATES
Nilkantb Estates Contellts of the Consolidated Financial Statements For the year ended 31" December 2023 P2ge5 Report of the Trustees (in¢luding Group Strategic Report) Report of the Independent Auditors io Consolidated and Chartty Statement of Financial Activities 14 Consolidated and Charity Balance Sheets 15 Consolidated and Charity C&sh Flow St2tement 16 Notes to the Consolidated financia] statements 17-27
Nillianth Estates Report of the Trustees (includints Group Strategic Report) For the year ended 31st December 2023 The Tnstees (who are also directors of the Charity for the purposes of the CoTnpanies Act) present their Annual Repo¢ Strategic Report and the audited financial stst¢ments of Nilkanth Estates (the 'Charity' or 'Company') and th¢ group for the year ended 3 1st December 2023. Nilkanth Estates (company number 08154119, incorporated in England on 24 July 2012) and its wholly-controlled subsidiary, Brandon House Limited (company number 10612051, incorporated in England on 9 February 2017}. are both charitable orJ(y nisations established as mpanIeS limited by .uuarantee. The Charity is based in the UK and has its head otYi¢e in Neasden. London. OBJECTIVES AND ACTIVITIES The group's purposes, as set out in the Objects claus¢ Contsined in the Charity's and its subsidiary's Memorandum of Association are: to advanee the Akshar Purushottam Swaminarayan d¢nomination of the Hindu religion based upon the teachings and principles ofBhagwan Swaminarayan. and to fosterthe practice 2nd worship ofthe Akshar Purushottam Swatninarayan denomination of the Hindu r¢ligion as revealed by Bhagwan Swaminardyan" preserve and safeguard the health of all persons and in particular of voung peOnS who are in danger of becoming addicted to or dependent upon illegal druus of any descrEption, Cohol, solvents or other addictive subst8n¢es' advance education for th¢ public benefi( pmmote community participation in healthy recreation so as to develop participants, physical, mental and spiritual capacities; and for those purposes without prejudice to the generality of the foregoing. to allow other charities having similar objects to occupy any of its premises &t nil or nominal rent. Our aims fully reflect the purposes that the group was set up to further. Ensuring our work delivers ollr aims The trustees review the aims, objectives and activities of th¢ 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 success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission's general guidanee on public benefit when reviewing our aim and objectives and in planning our future a¢tivities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. Volunteers Tlie 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
Nill(anth Estates Report of the Trnstees For the year ended 31$t December 2023 GROUP STRATEGIC REPORT Achievement and perforn)2nce Nilkanth Estates own and managc a debt-free diverse propety portfolio with a carryino value of £95.28 million, of which properties with a net book value of £52.] million are used for charitable purposes specifically for use by Bochasanwasi Shri Akshar Purshottam Sanstha BAPS, in the advancement of our common objectives. Properties valued at £43.18 million are held for investment purposes. Our expenditure objective is two-fold= increase invesDnent income by increasing our propety Portfolio in order to support the operating costs where required by BAPS and other charities which share the ¢otnmon objective of advancement of th¢ Akshar Purushottam Swaminarayan denomination of the Hindu faith. to fund the acquisition and development of properties for use by BAPS and other charities which share the common objective of advan¢eTt]ent of the Akshar Purushottam Swaminarayan denomination of the Hindu faith. The pmperties held for investh)ent purposes are predominantly residenti&l properties and a property which was used as a private Hindu faith-based school has ¢eed its activities. This propety therefore has now been reclassified from investment propety to a freehold property. The Trustees are considerin(r alternative use of this property. The properties held as tangible fed assets are those provided by the Charity to BAPS for use across the county as temples, assembly halls and ancillary purposes. In addition, there are a number of resident121 properties which are held to provide accommodation for full-time volunteers, priests and overseas visitors. During the year the Charity reclassified one of its properties. onc tangible fixed asset began being let to earn rentsl income. Upon the reclassification the Charity assessed its fair valuation and was satisfied. Charitable actiTrities During the year, the Group achieved its aims and objectives by providing properties with & carrying value of £52.1 million rent-free to BAPS and The sarJUd Foundation (and its Wholly-o1¢d subsidiaries and.oroup undertakings). Both these charities have the same aims and objectives Nilkanth Estates. The properties provided by the Group to BAPS include Mandirs situated in= Neasden, London Leeds Manchester South London Coventry Leicester Birni1natn WellingborouJ(r Chigwell, London Loughborough Preston Havant Luto Southend-on-sea The a¢tivities undertaken at the above properties further the Charity's common aims and objectives for the public benefit and include a variety of we¢kly a¢tiviti¢s, spiritual forums for children and adults, courses in ethnic language, music, and dance, and events which cultivate personal talents and interpersonal skills and promot¢ the strengthening of relationships within communities and families. Duringthe year the Charity provided a loan of £2.2m to the Satiudas Foundation: in furtheran¢e of charitabl¢ objects of Nilkanth Estates. This was repaid in full after the year-end. Financial review The Group is funded by the following main activities= Rental incom¢ Donations received Treasury management. Page 2
Nilkanth Estates Report of the Trustees For the year ended 31$t December 2023 The Group fund5 its expenditure from rental income derived from its investment propety portfolio and has the freedom to spend both income and capitsl. The Group holds cash balances to mana(re fluctuations in cash flow. In 2023, the Group received donations of £Nil (2022.. £7.2m) from saudas Foundation, a registered Charity with similar aims and objectives as the Charity and after net investment income of £1.554m (2022 £1.461m), depreciation costs on Its fixed asset properties and governance costs of £l.102m (2022- £1.214m), and net gains on the revaluation of fixed assets of £Nil (2022 - £3.8m). the Group's retained net income for year was £78,860 (2022 £12.15m) and accumulated reserves at the year-end were £100.447m (2022- £100.J68m}- During 2023, the Group spent a total of approximately £1.475m (2022 - £1.582m) on operatin(F costs. Fundraising actiiTrties Neither the Group nor the Charity undertake any public fundraising activities. Investment performauce In 2023. the Group's PToperty investment portfolio valued at £31.46Tn (cost- £19.687m) generated a total return of c.50/0 on value which the trustees consider is reasonable for its property portfolio and broadly around market expectations. Liability Insurance The Group purchases trust¢¢ liability insurance on behalf of the trustees to protectth¢m against claims that may arise from the pcrforn)ance of their ¢haritsble duties. Reserve Policy The Trustees review reserves annually. Their policy is to hold enou(rh cash reserves to meet the operating 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. En establishing this policy, the Board of Trustees ¢onducts an annual review of the level of llnrestrieted reserves in the general fund by considering risks associated with the various income streams. expenditure plans and balance sheet items. This enables an estiTnate 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-goin(y work progrdmme; and to allow the Group to meet its objectives Risks and issues considered by the Board of Trustees in making this judgement on the level of unrestricted reserves include.. likelihood of a dowiturn in income streams; period of time required to re-establish income strwdms. period of time required to downsize the Group operations. whether ther¢ is adequate control over budgets potential decrease in the value of the investtnent portfolio; and requirements for a reasonable level of working capital. Page 3
Ni]kanth Estates Report of the Trustees For the year ended 31st December 2023 The Group's operating expenditure (operation21 expenditure comprises of all the expenditure incurred by the charitv in undertaking its work to meet its charitable objcctives) does not normallv exceed £400,000 per annum. The Trustees are of the view that maintaining free reserves, which are considered total unrestricted funds less those funds reprcsented by operdtional and investtnent fixed assets. of at least three times this amounL i.e. £1.2m, will provide sutTicient resources in the event of adverse conditions. As at 31 December 2023, the Group's free reserves amounted to £5.Im. The Charity holds surplus reserves to fund the future purchase of additional properties for use in furtherance of its charitable objectives. The Truste¢s have confirn)ed that, after carefvl review ofthe reserves policy, as at 31 December 2023, the Group's free reserves were in excess of its reserves policy, purchase of additional properties are beino actively sought by the Trustees for furtherance of Charity's objectives. In considering the adequacy of the reserves. the Trustees have taken into account the largely dis¢retionary natyre of its expenditur¢ and the amount of cash held and investment income derived. Princip21 risk% and uncertaillties The main risks for the Group ar¢.. generation of renta] income from its investment properties to fund its ow) operating costs and support the operations of other Charities with common objects and activities. Income from letting its investment properties Is dependent on the economic cycles, including their impact on tenant covenant quality, interest rates, inflatio property values and environmental and health and safety measures and its compliance. The Group typic211y acquires properties in areas which its tnjstees believe can be readily let at reasonable income levels and with little risk of void periods. The trustees regularly carry out maintenance of its properties to comply with health and safety obligations and to ensure that its properties do not fall into a state of disrepair. The Group relies on donations from S2rjudas Foundation to supplement its rental incoTne surpluses in order to be able to financ¢ the acquisition of both investment properties and properties acquired by the Charity and tnade available for use by BAPS and other charities with similar aims and objectives. Saryudas Foundation is an established Charity and the trustees see no reason why donations from that Charity may cease, however, the Group has an unencumbered invesknent property portfolio with a value of £31.5m and could easily gear up with debt to finance further property acquisitions should donations from Sarjudas Foundation ease. Financial and risk management objectives and policies The Trustees are responsible for ensuring effective risk management and that internal controls are in place to appropriately manatre the risk exposure of the Group. In doing so, the Board has considered the major risks to which the Group is exposed, the potential impact and probability associated with each risk and the mitigating actions needed to reduce each risk to a level that the Trustees considers to be acceptable. The major financial risks are each subject to ongoing monitoring and management. Income and cost control are subj¢¢t to ongoing review on at least a quarterly basis with prior approval of the Board needed for si.(mificant cost activities. The following sections provide detsils regarding the Group's exposure to the above-mentioned financial risks and the objective4 policies and processes for the management of these risks. (a) Credit risk Credit risk is the risk of loss that m&y 2rise on outstanding financial instruments should a counterpaty default on its obligations. Such credit risk would arise primarily from trade and other receivables. The Group's trade debtors are 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 credit risk by dealing exclusively with high credit rating financial institutions. Page 4
NAlkanth Estates Report of the Trustees For the year ended 31" December 2023 (b) Liquidity risk Liquidity risk is the risk that the Group will encounter diificulty in meeting financial obligations due to short2g¢ of funds. The Group has no debt or other significant financial obligations and maintains sufficient liquid cash resources to meet its operating cash flows. (c) Interest rats risk Interest rate risk is the risk that the fair value or future cash flows of the Group's financial instruTnents will fluctuate because of clianges in market interest rates. The Group has no int¢rest-bearing borrowings and as such has no exposure to interest rate risk. As the Group has no significant interest-bearinu financial assets, its income and operating cash flows are substantially independent of changes in market interest rates. The Group's interest bearing financial assets are mainly short temi in nature. Internal Control The Trustees have overall responsibility for ensuring that the Group has appropriate Systems of internal controls across the entire organisation. The systems of internal control arc desIed to provide reasonable, but not absolute, assurance against materiat misstatement or loss. Internal Control processes implemented by the Trust¢¢s include.. Production of monthly mana(Fement accounts and review of financial results and perforniance indicators by the Trustees at monthly meetings. Delegation of authority and se(Fre.(vtion of duties. Identification and manauement of risk. Futsre plans Nilkanth Estates continue to seek suitable investment properties to develop its portfolio. With the support of donations from sid Foundation and surplus renta] income from its investment properti¢s, the Group intends to acqutre further investment properties and support the activities of BAPS who share common aims and obje¢tiv¢s. Subsidiary Undertaking: Nilkanth Estates also holds wholly-controlled subsidiary, Brandon House Limited. Brandon House Limited has same objects as the Nilkanth Estates. Brandon House Limited holds a mixed-use assets, Brandon House, part of which is rented out commercially and thus accounted for as an investment, and part of which is used for operational purposes and thus accounted for as a tangible fixed asset. The principal risks are similar to th¢ ones highlighted for the group in th¢ se¢tion below. Page 5
Nilkanth Estates Report of the TTUStees For the year ended 31" December 2023 STRUCTURE, MANAGEMENT AND GOVERNANCE Governing document Nilk2nth EsEates is a registered Charity (number 1148431) under the Charities Act 2011 and is a ¢haritable organisation incorporated in En812nd on 24 July 2012 as a company limited by ouarantee under Company number 08154119. The Charity is controlled by its governing documenl Memordndum and Articles of Association. Trvstees There were 3 trustees during the year. The trustees have responsibility formeeting the Group's charitable obligations and objectives. Changes in Trustees during the year are provided below. Under the requirements of the Memor8nduEn and Articl¢s of Association of thc Charity, truste¢s are elected to serve for a period of three years after which they must be re-elected. Subject to article 20A, the trustees may appoint new and additional trustees by a resolution ofthe Trustees passed at a Trustee meeting. These individuals work alongside existing Trustees for a period of three years before beino considered for appointment. Onuoin(r training is received by the trustees through attendance at courses and being provided Trith relevant infomiation from various resources, as required. All trllstees give their time voluntarily and receive no remuneration or benefits from the Charity. As the trustees are the key management personnel of the Ch8rity and are not remuneratel there is no remuneration policy for key management personnel. Operation Tlie Board of Trustees, which can have up to 7 members, administers the Group. There is one fijll time trustee (Mr G P Pltel) who is supported by two full-time administrators appointed by the trustees to manage the day-to-day operations of the Group. To facilitate effective operations, the administrators have delegated authority. within terns of the delegation approved by the trustees, for operdtional matters such finance. Most trustees are already familiar with the practical work of the Group having been involved in various activities themselves as volunteers. Additionally, newtrusEees are invited and encouraged to attend a series of training sessions to familiarise themselves with the Group and the context within which it operates. These are jointly led by the Chair of the Board of Trustees. All trustees give their time voluntsrily and receive no remuneration or b¢nefits from the Group. AttendaDce at board Jneetings The board meets when necessary but seeks to meet forthightly at least. During the year, all trustees attended IOOO/o of all meetin. Page 6
Nilkanth Estates Report of the Trustees For the year ended 31$t December 2023 Statement of Tru5tees' Responsibilities The Trustees are responsible for preparing the Trustees. Repor¢ th¢ Group Strategic R¢port and the ¢onsolidat¢d financial sEatements in accordance with applicable law and United Kin(rdom Accounting Standards (United Kingdom Generally Accepted Accountin Practice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which uive a true and fair view of the state of affairs of the Charity and the Group, and of the incoming resources and application of resources of the Charity and the Group for that period. In preparing these financial statements, the Trustees are required to= select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities Ststement of Recommended Prdctice on Accounting and Reporting" make judgements and estimates that are reasonable and prudent; state whether applicable a¢countinLY standards liave been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operatc. The Trustees are responsible for maintaining adequate accounting rccords that disclose with re&gonable accuracy at any tim¢ the financial position of the Charity and the Group and enable thetn to ensure the financial statements comply with the Companies Act 2006. They are also responsible for safe.(ryarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other Iegularltie$. Statement as to Disclosure of Information to Auditors The Trustees who w¢r¢ in office on the date of approval of these financial statements have COnfed, as far as they are aware, that there is no relevant audit inforniation of which the auditors are unaware. Each of the Trustees have confirnied that they have tsk¢n all the steps that they ought to have taken as Trustees in ordcr to make themselves aware of any relevant audit infomjation and to establish that it has been communicated to the auditor. Public benefIt The trustecs are mindful of the Charity Commission's guidance on public benefit'charities and Public Benefit, an(L in particular the supplementary guidance for charities whose aims inelude advancin(r reljDion 'The Advancement of Reli(yion for the Public Benefit, and have regard to that guidance when reviewing the Group's aims and objectives and in planning future activities. We are confident that, by providing financial resources to support the work of BAPS and other similar charities which share the common objective of advancement of the Aksh2r PurushottaJn SwaTninarayan denomination of the Hindu faith, we help to promote the faith more effectively, at a national level, and in individual centres. and that in doing so provide a benefit to the public by= - providing facilities for public worship, spiritual, moral and intellectual development both thos¢ who wish to benefit from what the what the Group offers. and through it5 SUPPOrt of BAPS, promoting Hindu values and service by members of BAPS in and to their communities to the benefit of individuals and society as a whole. Events since the end of the year Information relating to events since the end of the year is given in the notes to the financial statements. Page 7
Nilkanth Estates Report of the Trustees For tbe year ended 315t December 2023 Related parties and relationships Ivith other organisations Nilkanth Estates is related to both Satiudas Foundation and BAPS Swaminarayan Sanstha, and th¢re is a trustee in common with BAPS Swaminarayan Sansth& all thre¢ Charities share the same objectives. In 202). the Charity received a donation of£Nil (2Q22- £7.2m) from sarJUd Foundation and continued to provide BAPS with premises from which to hold congre. (Fations etc in the advancement of their objectives. During the year the Charity provided a loan of £2.2m to the Sarjudas Foundation, in furtherance of the charitsble objects of Nilkanth Eststes. The loan was intsrest-free, unsecured and repayable on demand. This was paid in full after the year£nd. BAPS occupies a number of properties owned by Nilkanth Estates for which no rent is payable. Reference and administrative details Registered Comp2ny number: 08154119 (England and Wales) Registered Charity number: 1148431 Trustees: Mr. G.P Patel - Accountant Mr. S J Kard Director of Strate(FiC Alliances- IT Services Mr K Bhattessa Hotelier Country of registration: England Auditors: Sixth floor 2 London Wall Place London EC2Y SAU Principal Ballkers: The Royll Bank of Scotland ple 354 Station Road Harrow HAI 3XZ Page 8
Nilkanth Estates Report of the Trustees For the year ended 31$t Deeember 2023 Solicitors: Hugh CartWTight & Amin 12 John Stret London WCIN 2EB AUDrroRS The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual Genera] Meeting following their appointment during the year. Report of the trus directors, on I ees. incorporating a strateiC report. approved by order of the board of trustees, as the company eptember 2024 and signed on the board's behalf by: Mr G P Patel- Trustee Page 9
Tr4illianth Estates Report of the Independent Auditors For the year ended 31" December 2023 Opinion We have audited the financial statements of Nilkanth Estates (the 'parent charitsble company,) and its subsidiary (the 'wup') for the year ended 31 December 2023 which comprise the Consolidated and Charity Statement of Financial Activities, the Consolidated and Charity Balance Shects. the Consolidated and Charity Statement of Cash Flows and notes to the financial statements, including a summary of si.(mifieant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Ac¢ountin(r Standards, including Financial R¢porting Standard 102 The FinoncialReporting St(7ndardapplicable in ihe UK(7nd Republic ofIreland (Unitcd Kingdom Generally Accepted Accounting Practice). In our opinion the financial statetnents= give a true and fair view of the state of the group's and parent cliaritable companv's affairs as at 31 December 2023, and of their incoming resources and application of resources, including their income and expenditure, for the year then ended. have been properly prepad in accordance with United Kingdom Generally Accepted Accounting Practice" and have been prepared in a¢cordan¢e with the requirements of the Companies Act 2006. Basis for opinion W¢ conducted our audit in accordanc¢ with International Standards on Auditing (UK) (ISAS (UK)) and applicable llw. Our responsibilities under those stondards are further described in the Auditor's Responsibilities for the audit of the financial statemcnts section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiretnents. We believe that the audit evid¢nc¢ w¢ have obtained is sulTicient and appropriate to provide a blS for our opinion. Conclusions relating to going eoDcern In auditing the financial ststements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluatÈon of the Trustees, assessment of the entity's ability to continue to adopt the uoing concern basis of accountinu included critical reviews of their future investment Strate and expected investment income. Based on the work we have perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company's abilitv to continue as a going concern for a period of at leasttwelve months from when the financial statements are authorised for issue. Our responsibilitics and theresponsibilities of the Trustees with respe¢tto going concem are described in the relevant sections of this report. Other inforniation The Trustees are responsible for the other information. The other information comprises the inforniation included in the annual reporL otherthan the financial statements and our auditor's report thereon. Ouropinion on the financial statements does not cover the other information and, except to the extent othenvise explicitly stated in our repoit we do not express any fortn of assurance Conclusion thcreon. Page 10
Nillnth Estates Report of the Independent Auditors For the year ended 31" December 2023 In connection with our audit of the financial statements, our responsibility is to read the other information and, in doinu so, consider whether the other information is materially inconsistent with the financial statements or our knowledoe obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to deteminc whether there is a material misstatement in the financial statements or a material misstatement of the other inforn)ation. If. based on the work we have p¢rfornied, we conclude that there is a material misstatement of this other infomiation, we are required to report that facL We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit". the information given in the Tnjstees, rq)ort (incorporating the Directors, report) forthe financial yearfor which the financial statements arc prepared is consistent with the financial stateTnents: and the Tnsiees, report (incorporating the Directors, report) has been preparcd in accordance with applicable leJu I requirements. Matters on which we are required to report by exception In the li1t of our knowledge and understanding of th¢ group and parent charitable company and its environment obtained in the course of the audiL we have not identified material misstatsments in the Directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us. or the parent charitable company's financial statements are not in agreement with the accounting records and returns; or certain disclosures of Directors, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Trustees, responsibilities statement included in the Trustees, Annual Repor( the Trustees {who are also the Directors ofthc charitablc company for the purposes of company law) are responsible for the preparation of the financial statements 2nd for being satisfied that they give a true and fair view, and for such int¢mal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatemenL whether due to fraud or em)r. In preparing the financial statements, the Trustees are responsible for assessing the group's and parent charitable company's ability to continue as a tsoing concern, disclosino as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitsble company or to cease op¢ratlOns, or have no realistic alternative but to do so. Page11
Nilkanth Estates Report of the Independent Auditors For the year ended 31S1 December 2023 Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatemenL whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high lcvel of assurance. but is not a guarantee that an audit conducted in accordane¢ with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggre. ate, they could reasonably be expected to influence the economic decisions of uscrs taken on the basis of these financial statements. IrreoularÉti¢s, includin(y fraud are instances of non-compliance with12ws and reuulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irreoularities. including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. Obtaining an understanding of the legal and regulatory frameworks that the entity operates in. focusing on those laws and regulations that had a direct effect on the financial statements. Enquiry of tliose charoed with governance concernino any instances of knoThm or suspected instances of fraud. Enquiry of those charged with governance concerning actual and potential lititiOn and claims- Enquiry of those Charged with governance concerning any instances of non-compliance with laws and re.(yulations' Reviewing the design and implementation of control systems in place; Testing the operational effectiveness of the controls- Perforniin(F audit work over the risk of management Oveide of controls, including testing ofjournaj entries and other adjustments for appropriateness- Evaluating the business rationale of sig)ific8nttr8nsactions outside the nornjal course of business and reviewing accounting estimates for bias. ReviewinLT minutes of meetinus of those char.Lrd with <rovernance' Reviewin(F financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and re.(Fulations. Because of the inherent limitations of an audit there is a risk that we will not detect all irre.(Fularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increeS the more that compliance with a law or re.(yulation is removed from the events and transactions reflected in the financial stateTnents. as we will be less likelj to become aware of instances of non-compliance. The risk is also greater regarding irregularities O¢¢UJTing due to fraud rather than error, as fraud involves intentional concealmen¢ forgery, collusion, omission or misrepresentation. A further descriptioll of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. https.'//www.frc.oru.uklOur-WorkJAudidAudit-and-assurance/Standards-and- guidancelstandards-and-ouidance-for-auditors/Auditors-responsibilities-for-auditlDescription-of_auditors- responsibilities-for-&udit.2spx. This description fonns part of our auditor's report. Use of this report This report is made solely to th¢ charitable company's members, as a body, in accordan¢¢ with Chapter ) of P2rt 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to thetn in an auditor's report and for no other purpose. To the fullest extent pennitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this repo¢ or for the opinions we have fonned. Page 12
Nilkanth Estates Report of the Independent Auditors For the year ended 31" December 2023 Sudhir Sillgh FCA (Senior Statutory Auditor) For and on behalf of MHA. Statutory Auditor London, United Kingdom Date: 30 September 2024 HA is the trading name of Mactntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313) Page 13
Nillianth Estates Consolid2ted and Charity Statement of Financial Activities (incorporating income and expenditure aceount) For the year ended 31st Deeember 2023 The Group unrestricted funds 2023 2022 The Charity - unrestrictsd funds 2023 2022 Notes Income frorn: Donations and legacies Invesbnent income Other 7.661,452 1,461.097 782,449 461,452 1.061,098 782,449 1,554,189 1,030205 Totsl income I,i54,189 9,904,998 1,030,205 2,J04,999 Eipenditure on". Raising finds Charitable activities.. Provision of facilities 373.024 368,018 318,628 347,683 1,147,698 1.214.405 1,118,764 1,185.705 Totsl expenditure 1,520,722 1.582,423 1,437?92 1.533.388 Net incomel(expendxture) before net losses on investments 33,467 8.322.575 {407,187) 771,611 Gains on revaluation 8nd reclassification of 12113 fixed Sets 3.829,100 3,829,100 Net movement ID funds 33,467 12,151.675 (407,187) 4.600.711 Funds brought fOard 100?68,505 88,216,830 89,074,168 84,47),457 Funds carried forward 18 I(K),401,972 100,368,505 88,666,981 89,074,168 The totsl funds of the Company were unrestricted. There were no restricted or designated funds durÉng the year or for the previous year. All of the above results are derived from continuing activities. There were no recognised gains or losses other than those stated above. The appended notes for part of these accounts. Page 14
Nilkanth Eststes CoDsolidated and Cbarity B]ance Sbeets as at 31 December 2023 Companynurnber08154119 The Croup 20Z3 The Charity 2023 2022 2022 Tangiblc assets Investmentproperti¢S 12 13 14 5302S632 31.416J47 10.000.000 55,123.190 30.898.020 lo,,000 51177072 53,451J50 25A06364 24,896,063 9S241,979 96,021210 77584J36 78.347,413 Currentassets". Debt¢)rs Cath at bank a[ in hand 16 2J86.069 3,111338 2,032.043 2,680,606 &834251 l489024 8.580.991 1426.980 5.49&407 4.712.649 IIJ2£075 Liablllries: Creth"tor5.' aMots falling due Nithin one year 11,007,971 17 (33&414) 1365,3541 (241A30) (281.2161 Net eurrent assets 5,159.993 4,347295 li,0644 10.726,755 Total assets kss eurnt ]iabiFitles IOOAiIIJ72 IOOJ68505 8&666,981 89.074,J68 Totsl ttet wts 100.401,972 100.368505 88ffj66,981 89,074.168 Funds: Unrestricted ine(>me fijnds 18 IOONOI,972 100.368,505 8&666,981 89.074.168 Tolxl IIJo,401,972 100.368.505 88,(O6.981 89.074.168 The Group's financial statements have been prepared in accordance with the provisions applicabl¢ to companies subject to the small companie5 reqme. The appended notc5 formpart of thes¢ accoJJnts. The financial staten]ents We approved by the Bo#rd OrTn on 11 September 2024 and were signed on its behalf b G P Patel K Bbattessa Trnstee Page 15
Nilkxnth Estates Consolidated and Charity Ststement of Cash Flows For the year ended 31 December 2023 The Group 2023 The Charity 2023 2022 2022 Notes Net cash provided byl opernting activities 19 777J47 7,628,102 400,413 1,750.908 Cash floTrYs from investing activities: Dividends, interesL and rents received from investsnents Purchase of tangible fixed assets Purchase of investment propety Proceeds from sa]e of FIH Property (337,689) (62,966) (7,926) (8,541.756) 472.936 (337,689) (62.966) (2,539.801) 472,936 Net cash provided byl(used in) investing activiti£g (345,615) (8,131,786) (337,689) (2.129.831) Change in cash and eash equivalents in the year 431,732 (503.684) 62,724 (378,923) Cash and eagh equivalents 2t the beginning of the ye8 2,680,606 3,184.290 2,426,980 2.805,903 Cash 2nd cash equivalents at the end of the year 3,112?38 2.680,606 2,489,704 2,426,980 ANALYSIS OF CHANGES IN NET DEBT INO Debt is held by the Charity and Group) Asat31 December 2023 Asatol January 2023 Group Cash flows C&gh at ba and in hand 2.680.606 431.732 3.112,338 2,680,606 431,732 3.112J38 Cbgrity Cash at bank and in hand 2,426,980 62,724 2.489,704 2,426,980 62,724 2,489,704 Page 16
Niikanth Estates Notes to the Consolidated financial statemellts For the year ended 31 December 2023 Accounting policies Basis of preparation The financial staiements of the charitable company. have been prepared in accordance with the Charities SORP (FRS 102)'Accounting and Reporting by Charities: Ststement 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 ?019)', Financia] Reporting Standd 102 'The Financial Reporting Standard appli¢able in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historica] cost convention. as modified by the revaluation of certain assets. (a) The functiona] and presentation curren¢y is UK Pound Sterling (£). These financial statements consolidate the results of the Charity and its wholly-controlled subsidiary on a line by line basis. Transactions 2nd balances between the Charity 2nd it5 subsidiary have been eliminatsd from the consolidated financial statements. Balances between the entTties are disclosed in the notes of the Charity's balance sheet. (b) Publi¢ benefit entity The Charity and its wholly-controlled subsidiary meet the definition of a public benefit entity under Charities SORP (FRS 102). (e) GoiDg concern The majority of the income received from by the Group is investment incorne from its investment property portfolio which are let to social housing providers. The Group has continued to receive income based on its investment in properties over the years. The Charity has minimal on-going leoal or constructive commitments. There are no uncertainties, material or otherwise, regarding the Group's going concern. The trustees therefore have reasonable expectation that the Group has adequate resources to continue in operational existence forthe foreseeable future which exceeds 12 months from the date of signing of the financiaI ststements and therefore continue to adopt the going concern basis of accounting in preparing the annual c0011dated financial statements. (d) tneome All income is recognised in the Statement of Financial Activities once the Group has entitlement to the funds, it is probable that the income will be received and that the amount can be measured reliably. Volunt3Jy income comprises revenues generated from various form5 of donations. Investtnent income includes income generated from propety investment 2nd interest received on cash deposits. (e) Don2tions of gifts, services xud facilities Donated professional services and donated facilities are recognised as income when the group hag control over the item or received the service. any conditions associated with the donation have been TneL the receipt of economic benefit from the use by the group of the item is probable and that economic benefit can be measured reliably. In ac¢ordan¢e with the Charities SORP (FRS 102), volunteer time is not recogni5ed so refer to the trustees, annual report for more infortnation about their contribution. On receipt, donated gilb, professional services and donated facilities Jre re¢ognised on the basis of the value of the gift to the group which is the amount the group would have been willing to pay to obtain services or facilities of equivalent ewnomi¢ benefii on the open Tnarket. a ctsrresponding amtsunt is then reoognised in expenditure in the period of receipt. Page 17
Nilkanth Estates Notes to the Consolidated financial statements For the year ended 31 December 2023 Accounting policies (eontinued) (D Expenditure and irrecoverable VAT Expenditure is recogniged once there is a lega] or ¢onstructive obligation to make a payment to a third paty, it is probable that settlement will be required and the amount of the obligation ¢an be measured reliably. Expenditure is classified under the following activity headin= Costs of raising funds relate to the investment management costs. Expenditure on charitsble activities includes the costs of activities undertaken to further the purposes of the Charity and their associated support Costs including govemance costs and depreciation of tangible fixed sets. Expenditure is accounted for on an accruals basis and has been classified under headings that agegate all cost related to th¢ category. IlThere costs [u10t be directly attributed to particular headings they have been allocated to a¢tivities on a basis consistent with the use of resources. Irrecoverable VAT is ch8Jged &8 2 cost against the activity for which the expenditure w&s incUd. (g) Allocation of support costs All supporE costs are allocated to the expenditure on charitable activities &s none of these costs are allocable to the costs of raising funds, which are the investment manaLtement costs. Support costs include govemance costs, which are the costs associated with the governance arrangements of the Charity. These costs are associated with constitutional and ststutory requirements and include any costs sociated with the strategic management of the group's activities. (b) Taxation The group is exempt from corporation t&x on its charitable activities. (i) Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £500. DePreeatiOn costs are allocated to activities on the basis of the of the related assets in those activities. Assets are reviewed for impairment sf circumstances indicate their canying value may exceed their net realisable value and value in use. Drpreciation is provided at rates calculated to write dowTJ the cost of each asset to its estirnated residual value over its expected life. The depreciation rdtes in use are as follows.. Freehold buildin 20/0 on cost Freehold land is not depreciated. ti) Investment properties Investsnent properties are measured at fair value at each reporting date and are not depreciated. Cash investments Ch held in fixed terni deposit accounts exceeding one year are classified as fIxed asset investments as they are generally held with the overdll intention of long tertn retention for the continuing benefit of the group in the forn] of income and capital appreciation. (k) Debtors Trdde and other debttsrs are recognised atthe settlemeni amount due after any trade discountoffered. Prepanents are valued at the amount prepaid net of any trade discounts duc. Page 18
Nill(auth Estat£s Notes to the Consolidated fjnancial ststements For the year ended 31 December 2023 Accounting policies (continued) IAians which have been provided with an interest rate below the market rate and for charitable purposes are deemed concessionary loans. o) Cxsh at bank and in hand Cash at bank and in hand includes ¢ash 8nd short terni highly liquid investtnents with a short maturity of three rnon or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any finds held on behalf of service users. (m) Creditors and provisions Creditors and provisions are recOlSed where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be Meured or estimated reliably. Creditors and provisions are nornially recognised at their settlement amount after allowing for any trade discounts due. The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently Meured at their settlement value with the exception of bank loans which are Subsequently Tneasured at amortised cost using the effective interest method. (ll) Fund aceountiDg Unrestricted funds can be used in accordance with the charitsble objectives at the dis¢retion of the trustees. Restricted funds c2n only be used for particular restricted puwoses within the objects of the Charity. Restrictions arise when Specified by the donor or when funds are raised for particular restri¢ted puryoses. Critie21 accounting estimates and judgements The Group Tnakes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaIuated based on historical experience and other factors, includingthe expectations of future events that are believed to be reonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and sUmptiOnS that have a si.(mificant risk of causing a materia adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.. InveslpneniProperties Invesknent properties whose fair value can be measured reliably without undue cost or effort should be m¢Ured at fair value at the year end with any changes in fair value recognised in the stateTnent of financial activities. The investment properties have been valued by the trteeS at the period<nd based on th¢ir knowledge of the properties and their location and having conducted infonnal market research considering COEnparable properties. Following their a8sessmenL they have concluded that there has been no material change in the fair value since the Previo valuation. with the exceptitsn of one investtnent property whose fair value is considered to have in¢reased by £2.6m since the previous year-en¢ following an independent valuation by Rtcs-accredited chartered surveyor. A change in the assumptits used by the trustees Tnay result in a change in the value of investment properties. Page 19
Nilkallth Eststes Notes to the Consolidated fInancial ststements For the year ended 31 Deeember 2023 Critical accounting estimates and judgements, continued Fre£koldPropety The Group and the Charity hold freehold land and buildings. The freehold buildings are depreciated overa period of 50 years whi15t18nd is not depreciated as its value is not likely to diminish over time. The Group carries out regul maintenance of its freehold properties and therefore it is likely that the useful lives of the property may exceed 50 years. The tsustees have been required in the absence of a split of purch&se COSL to estimate the allocation of the cost of these propertses between the relative elements attributable to land. which is not depreciated, and buildings. Having consulted with property professionals, considered statutory provisions, and researched market factors. the trustees consider 30 % of the acquisition cost of each tanoible fixed asset to represent land and 70D/o to represent buildings. As SUCK 30% of the ¢ost of each tangÉble fixed Set property is not depreciated. Income from donations 2nd leuacies Grollp Charity 2023 2022 2023 2022 Donations 7,661.452 461,452 Income from investments Group Charity 2023 2022 2023 2022 RentaI inctsme- operating leases 1,554,189 1.461.097 1,030,205 1,061,098 1,554,189 1,461,097 1,030,205 1,061,098 Other Income Group Charity 2023 2022 2023 2022 Profit on disposal of fixed assets Insurance income 322,561 459,888 322,561 459,888 782,449 782.449 Page 20
Nilkanth Est2tes Notes to the Consolidated finanei21 statsments For the year ended 31 December 2023 Cost of raising funds- investment management costs Group Charity 2023 2022 2023 2022 Rates Gas and elcctricity Repairs and maintenance Insurance Consultancy fees Bank charges Sundries (1,395) 40,688 135,416 97.864 100,034 (837) 53,737 200,J80 72.956 41,497 259 26 129 23.173 135,41) 88.145 71,460 295 13 324 37.062 200,380 40,360 244 13 26 373,024 368,018 318,628 347,683 Expendithre on charitable activities Group Charity 2023 2022 2023 2022 Provision of facilities Governance costs (See note S) Tnterest payable 1,124,844 22,800 54 1.192,625 21.78Q 1,100,764 18,000 1.168,545 17.160 1,147,698 1.214,405 1,118,764 1.185.705 All the above costs support costs. GovemanTr costs represent auditors. remuneration only. Net income/(expenditure) for the year Net incomel(expenditure) for the year is stated after charging". Group Charity 2023 2022 2023 2022 Depreciation of fixed aqsets - owned Auditors, remuneration (including VAD= 1,124,844 22.800 1.192.625 21,780 1.100.764 18,000 1.168.545 17,160 Staff costs The Group doe5 not have any employees. Tts twstees are responsible for the governance of the Group and give their time freely. Volunteers, in¢luding employees of The Saoudas Foundation and BAPS Charitie& "manage" the day-to-day operations of the Group. Whilst the nature of the volunteers, time is not consid¢red general, the monetary value of their time is not considered rnatcrial and thus not recognised in the accounts. Page 21
Nilkallth Estates Notes to the Consolid2ted financial statements For the year ended 31 December 2023 io. Trustees, remuneration and expenses Neither the Charity trustres nor the dittCt0 of the subsidiary were paid any remuneration. nor did they receive y other benefits from employment with the Group in the y&qr (2022.. £nil). No Charity trtee received payment for professional or other services supplied to the Charity, nor received reimbursed expenw. (2022.. £nil)- No trustee expenses were incurred in the year (2022- £nil). ii. Taxation The group is exempt from corporation tsx as all its income is Charitsble and is applied for ch2ritable purposes. 12. Tangible fixed assets Group Assets under construction Freehtsld Total Cost At start of the year Additions Recl8ssifi¢ation 73,572,102 298,688 337.689 73,870,790 337,689 (555,791) (555,791) At end of the year 73.016.311 636,377 73,652.688 reciation At start of the year Charge for the year Reclassification 18,747,600 1.124.844 (45,389) 18.747,600 1.124,844 (45,389) At end of theyear 19.827.056 19,827,056 Net Book Values: At end of theyear 53,189,255 636,377 53,825,632 At start of the year 54.824.502 298.688 55,123,190 Included in cost or valuation of land and buildings is freehold land of £1.128.373 (2022- £959.173) which is not depreciated. During the year, the Charity re¢lSIfied one of its properties,. a tangible fixed asset began being let to eam rentaI incotne. Upon die re¢lSifiCation tsf the tsngible fixed asset to an investment property, the Charity asseed and was satisfied with its fair valuation. Page 22
Niikanth Estates Notes to the Consolidated financial ststements For the year ended 31 December 2023 12. Tangible fixed assets (Cont'd) Charity Assets under construction Freehold Total Cost At start of the year Additions Reclassification 71.852,102 298,688 72.150,790 337.689 337.689 (555,791) (555,791) At end of the year 71,296.311 636.377 71,932.688 reciatioD At Start of the year Charge for the year R¢¢lassification 18.699,440 1,100.764 (45,389) 18,699.440 1,100,764 (45.389) At end of the year 19.754.815 19,754,816 Net Book Values: At end of theyear 51,451,495 636,377 52,177,872 At start of the year 53.152,662 298,688 53,451,350 13. Investment properties The Group 2022 The Charity 2023 2022 2023 Market value At start of the year Additions Revaluation Reclassification 30,898,020 7,925 28,322,585 24,896.062 28.322,585 8,541,757 2.539,800 (170,899) (170,899) (5.795,423) (5,795,423) 510,402 51(>,402 At end of the year 31,416J47 30,898,020 25,406,464 24,896,063 Investment properties with an original c(>st of £26.539m have been valued at £31.46m by the tsustees. The ttee5 of the Group perfornied an assessment of the market value of its investment properties at the ye8r- end. The trustees reviewed the presentation of the Brandon Hoe propety at 31 December 2020. They reassessed the presentation and considered it a mixed-use Se( the investment part of which is recognised at year-end fair value (see Note 14 below). Page 23
Nilkxnth Estates Notes to the Consolidated financial statements For the year ended 31 December 2023 14. Ivlixed-use assets The Group 2022 The Charity 2023 2022 2023 Fair value At start of the year 10,000,000 10,000,ooo At end of tbe year 10,000,000 10,000,000 The trustees of the group reviewed the fair value Df the element ofthe Brandon House propety which is ed for investment purpose5 at 31 December 2020. An infomiai valuation from a Rtcs-accredited property advisor at this date atthbuted a fair value of £1 Orn to the proportion of the building let commercia]ly, and the gain in value recogniscd in the SOFA. The trustees of the wup perfOned an assessment of the market value of this property at 31 Deccmber 2023 and did not consider a revaluation necessary. 15. Investments in subsidiaries Nilkanth Estates controls IOOQ/o of 2 ¢haritable company, Brandon House Limited (Reg. Charity no. 1172517 and Company no. 10612051). which was incorptsrated in Bngland and WaIes on 9 February 2017. Brandon House Limited is a ¢ompany limited by guarantee. It three lit industrial units and BeddingLon Conference Centre ('BCC'). The ]ndtrIa] units have been rented out to a single tenant on a 10-year lease at an initial rent of £200.000 forthe first year rising to £400,000 from the second year with rent review after 5 years. A summary of the financia] statements of the Charity's subsidiary, Brandon Hoe Limited is shown below.. Ststemellt of financial #ctivities 2023 2022 Income and Endowments from: Donations and legacies Invesknent income 7,200,000 399,999 523,984 Total income 523,984 7.599,999 Expenditure: on raising find5 (83.328) (49.037) Total expenditure (83,328) (49.037) Net income 440,656 7.550,963 Page 24
Nilkanth Estates Notes to the Consolidated fiuaneiai statements For the year ended 31 December 2022 Balanee sheet 2023 2022 Tangible assets Investment properties Mixed use assets CuTreni assets Creditors due within one year Creditors due after more than one vear 1,647,760 1,671.840 6,009.882 6.001,956 i 0.000,000 10,000,000 808,583 1,638,929 (96,982) (84, li8) (6.91J.251) (8,213,251) Net assets 11,455,992 11,015.336 16. Debtors Group 2022 Charity 2023 2023 2022 Amounts falling due within one year.. Trade Debtors Other debtors VA T recoverable Loans receivable Prepayments & accrued income 19,768 166,301 19,002 166.301 1,200,000 2,200.000 2.200.000 646,740 646,740 2J86,069 2,032,04) 2200,000 646,740 Amounts falling duc after more than one year: Concessionary loan 6.634,251 7,934,251 Aggregate amounts 286,069 2,032,043 8,834,251 8.580.991 Flilkanth Estates provided a loanto its subsidiary, Brandon House Limit¢d, of £8,201,331 in 2017 forthe purchase of the subsidiary s property and to rther both entities, charitable objectives. The loan.. incurred interest at 30/0 per annum up until 31 DeceTnber 2020 after which loan bec8me interest free. is secured against the propery- is repayable on demand, though the parent Charity has provided SUrance$ that it wll not be repayable until at least one year from 31 December 202J. The Charity a]so provided a loan of £2.2m to the S8rjudas Foundation during the year. in furtherance of the charitable objects of Nilkanth Estates. The loan interest-free, unsecured and repayable on demand. As dctailed in Note 23, the loan was repaid in full after the year-end. Page 25
Nilkanth Estates Notes to the Consolidated financial Statemeuts For the year ended 31 December 2023 17. Creditors: Amounts falling due TrvithiD one year GTOUP Charity 2023 2022 2023 2022 Trade creditors Other creditOTS Aecruals VAT payable 246,163 92.175 26J,728 97.006 4,620 231.289 10.141 251,266 29,950 76 338,414 365,354 241,430 281,216 18. Furtds The Group 2022 Tbe Charity 2023 2022 2023 Unrestricted funds At start of the year Incc>ming resources Resourtts expended Gain on reva]uation of fixed assets 100.368,505 1.554,189 (1.520.722) 88,216,8)0 89.074,168 84.473,457 9,904.998 1,030.205 2,304.999 (1.582.423) (1,437,392) (1,53),388) 3,829,100 3,829,100 At end of theyear 100,401,972 IOOJ68,505 88,666,981 89,074,168 19. Reconciliation of net incomel(expenditure) to net easb flow from operating aetivities Group Charity 2023 2022 2023 2022 Net income for the reportAng period as per statement of financial activities) Depreciation (Gain)Aoss on investments (Gain)Iloss on revaluation of fixed assets Profit on disposal tsf tangible fed assets (Increaseydecrwe in debtors (Decre&e)fincre in CditorS 33.467 12,151,674 (407,187) 4.6QO,711 1.124,844 1,192,625 170,899 (4.000.000) (322.561) (1,799,302) 234,766 1.100.764 1.108,545 170,900 (4,000.000) {322,561) (96,740} 230,053 (354,026) (26.938) (253.290) (39,874) Net cash provided byl(used in) opernting #etiYitie5 777J47 7.628,101 400,413 1,750,908 Page 26
Nilk#nth Estates Notes to the Consolidated fIn2ncial statements For the year ended 31 December 2023 20. Relatsd party trans2etioDS The Group provided operational and investent properties with a carrying value of £44.60rR to The Satiudas Foundation (and its wholly owned subsidiaries and group undertakings) and BAPS Charities rent- free. for a nominal rent amounL or on an aml's length basis. A5 detsEled in Note 16 above, the Charity provided the Sariud2s Foundation with an interest-free. unsecured £2.2m loan during the year. The Sarjudas Foundation and BAPS Charities have the same aims and objectives and the same beneficiaries as Nilkanth Estates. There are also common trUsteedirectOrS among the three entities. Brandon House Limited also received unrestricted donations aJnountingto £Nil (2022.. £7.2m) from The Satiudas Foundation during the year. In 2017, Nilkanth Estates provided a concessionary loan of £8,271.331 to Brandon Hoe Limited. its wholly- controlled subsidiary. Of this loan. £8.201,331 was ed to fund the purchase of the investment property held by this company. Interest on the loan was charged at 30/0 per annum up until ) Isi December 2020, and h& been interest free since. The loan is repayable on an indeterniinate period. Nilkanth Estates has also provided financial support to Brandon House Limited so that the latter remains a going concern. 2023 2022 Balance receivable from Brandon House Ltd Impairment provision R¢paJTnent 9,213,251 (279,000) 9.213,251 (279,000) 21. Post Balanee-sheet events In April 2024, the £2.2m loan to the Sarjudas Foundation (detailed in Note 16 above) was repaid in full. The same amount was subsequently grdnted to the Sarjudas Foundation in furtherance of the Charity's objects. In August 2024 a ant of £1,025,000 received from Sarjudas Foundation for purch&se of property.. 9-17 Shenley Avenue. Ruislip HA4 6BP. The propety was purchased on 16th August 2024. After the year end: Nilkanth Investments Limited fomed as a wholly-owT]ed subsidiary of Nilkanth Estates. The intention, subject to the advice of its professional advise. is that the company would be used tc> cary out the development of the property at Old GloucesEer Street. 22. Legal ststus of the Charity and its Subsidiary The Charity is a company limited by guarnitee and no shar¢ capitai. Its registered office address is I Pramukh Swami Road, Neden, London NWIO 8HW. In the event of a winding up of the company, the liability of the trteeS who are also the members of the company is limited to £1. Its subsidiary, Brandon House Limited, is a]so a company limited by gu8r8ntee. has no share capita] and is also a registered Charity. Nilkanth Estates is the sole member of Brandon House Limited and the fornier's liability in the event of a winding up is limited to £1. The registered office address of the Subsidiary is Brdndon House. 104 College Roa(L Harrow HAI I BQ. Page 27