REGISTERED COMPANY NUMBER: 08154119 (Ingland and Wales) REGISTERED CHARrrY NUMBER: 1148431 Group Strategic Report, Report of the Trustees and Audited Consolidated Finaneial Statements For the year ended 31" Deeember 2024 for NILKANfH ESTATES
Nilkanth Estates Contents of the Consolidated FinAncial Statements For the year ended 31¥1 December 2024 Pages Report of the Trustees {including Group Strategic Report) Report of the Independent Auditors 10 Consolidated and Charity Statement of Financial Activities 14 Consolidated and Charity Balance Sheets 15 Consolidated and Charity Cash Flow Statement 16 Notes to the Consolidated financial statements 17-29
Nilkanth Estates Report of the Trustees (including Group Strategic Report) For the year ended 3151 December 2024 The Tnistees (who ar¢ also directors of the Charity for the piirtK)ses of the Companies Act) present their Annual Report. Stral¢gi¢ Report 2nd the audiled financial statements of Nilkanih Estates {the 'Charity' or'Compai)y') and the group for the year ended 3 1st December 2024. Nilkanth Estates (company number 08154119, incorporated in En8land on 24 July 2012) and ils wholly-controlled subsidiaiy, Brandon House Limited (cotnpany number 10612051, incorporated iii England on 9 February 2017}, are both charitable organisations established as companies limit¢d by guarantee. The Charity is based in the UK and has its head olee in Neasden. London. 0EcT[V[s AND ACTIVITIES Th¢ groiip's purposes, as set out in the Objects clause contained in the Charity's and its subsidiary's Memorandum of Association are= to advance the Ak5har Purushottam Swaminarayan denomination of the Hindu religion based upon Ihe teachings and principles of Bhagwan Swaininai'ayan- and lo foster the practice and woi'ship of the Akshar Piirushottam Swaininarayan denomination of the Hindu religion as revealed by Bhagwan Swaminarayan,. preserve aiid saf¢guai'd the health of all persons and in particular of yOLing persong who are in danger of becoming addicted to or dependent upon illegal drugs of any description, alcohol, solvcnts or other addictive substances. advance ediication for the public benefit. promote COTnmunity parti¢ipation in healihy recreation so as to develop paiticipants, physical, mental and spiritual ¢apa¢ities' and for those piirtK>S¢S Without prejudice to the generality of the foregoing, lo allow other charities havillg similai. objects to occupy any of its premises at nil or nominal rent. Our aims fully r¢fle¢l the purrx)ses that the groLlP was set up to further. Ensuring our iyork delivers our aims The trustees vieW the aims, objectives and activities of the Charity each year. This review look8 at what ihe Charity has achieved and the outcomes of its work in the previous 12 months. The review looks at the success ol each key activity and the benefits they have brought to those groups of people we are set lip to help. The review also helps us ensure our aiin, objectives and activities remain focused on oiir Staled piirposes. We have referred to the guidance contained in the Chai'ity Commission's general guidance on piiblic beiiefit wheii I'eviewiiig oiir aim and objectives and in planning our future activities. In partiCLilar, the trustees Consider how planned activities will contr] ute to the aims FLnd objectives they have set. Volunteers The Charity is run by its trustees and other volunteers who give their lime fi'eely in the day-to-day mai)agem¢nl of the Charity. Page 1
Nilkanth Estate5 Report of the Trus¢ees For the year ended 3151 D¢¢ember 2024 GROUP STRATEGIC REPORT Achievement and performanee Nilkanih Estates own and manage a debt-free diverse property Portfolio with a carrying value of £98.14 million, of which properties iviih a nel book value of £51. I million arc iised for charitable Plirposes specifically for us¢ by Bochasanwasi Shri Akshar Purshottam Sansiha 'BAPS' in the advan¢em¢nt of our cominon objectives. Properties valued al £48.1 I million are h¢ld for investment purposcs. Our expenditui'e objective is tw(Ffold= increase investment in¢om¢ by increasing our property poitfolio in order lo siipport the operating costs whei'e requiied by BAPS and other cl)arities which sharc the common objective of advancement of the Akshar PLirushottam Swaminai'ayan denomination of tl)e Hindu faith. to fund the acquisltion and development ot properties for Lise by BAPS and other charities ivhich shal'e the common objective of adv&n¢ement of the Akshar PLirushottatn Swatninarayan denomination of the Hindu faith. Th¢ propeities held for inveslJncnl piirposes are predominantly residential properties and a property which was used as a private Hindii faith-based school has ¢eased its activities. This propcity therefor¢ has now been reclassified fiDtn investment property to a fiEehold propety. The Trustees al'e considering alternative use of this property. Th¢ properties held as tangible fixed assets are those provided by the Charity io BAPS for use across the country as temples, assembly ha115 and an¢illaiy purposes. In additioii, there are a number of residential properties which are held to proyide accommodation for full_time volunteei'S9 priest5 and ov¢rs¢as visitors. During the year tl)e Charity reelassified one of its properties; one tangibl¢ fixed asset began being let to earn rental income. UrK)n the reclassification the Charity assessed and increased its fair valuation. Dliring the year the Charity also acquired additional inv¢slm¢nl properties in order to increase ils inY¢stment portfolio and ultimately achieve the aims and objeciives of the Charity. One of the properties which was under consti'uction was gi'anted to Brandon House Limited. On eompletion of the constriiction works this properry is intended to have mixed iisage with part of it for own piirpos¢s for fuitlierance of tlie Charity's objcclives and i'emainder to be Commercial Plirposes. Charitable #ctivities During the year, the Group achieved its aims and objectives by providing properties with a carrying vali1¢ of £51.1 million rent-free lo BAPS aiid The Sarjudas Foundation (and its wholly-owned subsidiaries and groiip undertakings). Botli tl)ese charities have the saine aims and objeelives as Nilkanth Estates. The propeities provided by the Group to BAPS in¢liide Mandirs situated in.. Neasden, London Lceds Mai)chester South London Coventry Leicester Biriniiigham Wellingborough Chigwell, London Loughborough Preston Havanl Luton Souihend-on-sea The activiti¢s iindertaken at the above properties fuiil)er tlie Charity's coinmon aims and objectives for the public benefit and incliide a variety of weekly activities, spii'itual forums for childi'en and adults, courses in ethni¢ language, music, and dance, and events which cultivate personal talents and interpersonal skills and promote the strengthening of relationsliips within ¢ommiinities and fainilies. Page 2
Nilkanth Estates Report of the Trustees For the year ended 319I December 2024 Financial revieTrv The Group is fuiided by the following tnain activities.. (i) Rental income lil) Doiiations received lili) Tr¢asury managetnent. The Gi'oup funds its eKpeiiditLire from reiital incoine derived from its investineiit Pioperty portfolio and has the freedom to spend both income and capital. The Group holds cash balances to manage fliictualions in cash flow. In 2024, the Groiip received donations of £3.025m (2023.. £Nil) from Sarjudas Foundation. a regist¢r Chai'ity with similar aitns and objectives as the Charity and after net investment income of £1.459m {2023 £1.544m), depreciation costs on ils Fixed asset propeities and govcmanc¢ ¢osts of £1.102m (2023 £1.214m), and net gainsl(losses) on the revaluation of fixed assets of £(1.571m) [2023 £Nill, the GroLlP'S tttained net incotne/{cxpcnditui'e) for year was £1885,369}12023 £33,467] and a¢¢umiilated reserves at the year-end were £99.517m (2023 £100.401 m). During 2024. the Group sp¢nl a total of approximately £1.95tn (2023 - £1.475m} on operating costs. Fundraising activities Neither the Group nor th¢ Charity iindertake any public fiindraising activities. Investment peTformanee In 2024. the Groiip's propety investment portfolio valued at £31.94m {cost- £19.8i7m} g¢ncralcd a total return of c.5Q/o on value which the trustees eonsider is reasonable for ils property portfolio and broadly around market expectations. Liability InsurAnce Th¢ Group purchases triistee liability insLiranc¢ on behalf of the trustees to protect them against claims that may arise from the p¢rfomance of theii. charilable duties. Grant making Policy In r¢spe¢t to grant making, the Chai'ity ensiires the aims and principles in awai'ding grants are only to fiinds, projects and actives that are exclusively lor fiirtherance of Charity's aiins and obj¢¢lives. Diie diligence is applied to any grai)ts made to ensiire they contribuie towards achievement of advancemcnl of charitable purposes as detemiined by th¢ Trilee$. Reserve Policy The Trustees review reserves annually. Their policy is to hold enough cash res¢rves to meet the operating costs of the Group for al l¢asl one year. Sui'p5LlS funds from donations and rental income are accumulated and used to build n¢w teinple5 01. maintain existing ones. In establishing tliis poli¢y, the Board of Triistees conducts an annual review of the level of iinrestricted reserves in the general fund by considering I'isks associated witli thc varioiis income sti'eams, expenditure plaiis and balance sheet items. This enables an estiinate to be tnade of ihe level of reserves that are sufficient.. lo allow time for re-organisation in the eveni of a downturn in in¢ome or asset values; to protect on-going work pl021Me. and to allow the GroLlP to tneet its objectives Page 3
Nilkanth Estates Report of the Trustees For the year ended 31$1 December 2024 Risks and iSSLies considered by the Boai'd of Triistees in making this judgement on the level of unrestricted reserves include.. likelihood of a downtum in incoine streams,. period of time required to r¢-¢st8blish income streams; period of lime required to downsize the Group operations. whether there is adequate control over biidgets potcnlial d¢crease in the valLl¢ of the investment portfolio; and reqliirements for a reasonable level of working capital. The Group's operating expenditure (operational expenditure cotnprises of all the e.¥pei)ditui'e incurred by the charity in Lindertaking ils work to meet its charitable objectives) does not noiynally exceed £400.000 per annum. The Trnstees are of the view that Inaintaining free reserves, which are considered total iinrestricted fLinds less those fiinds repi'esented by operational and investtnenl fixed assets, of at least three times this amount, i.e. £1.2m, will provide sufticient resour¢e5 in the event ol'adverK conditions. As at 31 Decetnber 2023, the Groiip's free I'eserves amounted to £5.Im. N)e Charity holds Slirplus I'eserves lo tund the future purchase of additional prop¢iti¢s for iise in furtherance of its charitable objectives. The Tnislees have confimied that, after careful review of the r¢s¢rves rx)licy. as al 31 D¢¢ember 2023, the Group's fre¢ I'eserves were in excess of its reserves policy, puirhase of additional properties are being actively sought by the Trustees for fuitheranc¢ of Charity's objectiv¢s. In ¢onsidering the adeqiiacy of the reserves, the Triistees have taken into account the largely discretionary nature of its ¢xpenditLire and the amount of cash held aiid investment in¢ome derived. Principal risk8 and uncertainties The main risks for the GroLlP are.. generation of r¢nlal income from ils investment properties to fund its own operating costs and siipport the operations of other charities with common objects aiid activiti¢5. Income froill letting its investment properties is depeiident on the economic cycles, including their impact on tenant covenant quality, interest rates, inflatioii. property valii¢s and envii'onincntal 21)d health ai)d safety Ineaslires and ils coinpliance. The Group typically acqiiires pi'operties in areas ivhich its trustees believe can be readily let at reasonable income levels and with little risk of void periods. Th¢ Irusl¢¢s regiilarly carly 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 disirpair. The Group relies on donations fiDm Sarjudas Foiindation to siipplement its rental in¢om¢ surpluses in order to be able to finance the acquisitioii of both investment propeities and properties acquired by the Charity and made available for use by BAPS and other chai'ities Wlth similar aims and objectives. Sarjudas Foundation is an established Charity and the ti'ustees see no reason why donations from tl)at Charity In2y eease, however, the GroLlP has an Linenclimbered inv¢shnent property portfolio with a value of £31.5m and COLild easily gear lip with debt to finance further pi'operty acquisitions shoiild donations frotn Sarjudas Foundation ease. Financi31 and risk management objectives ad policie8 The Trustees are responsible for ensiiriiig cff¢clive risk management, and that internal controls are in place lo appiDpriately manage the risk exposutE of the Groiip. In doing so, the Boai'd has considered the major risks lo which the Groiip is expos¢d, the potential impact and probability associated with each risk, and the mitigating actioi)s needed lo reduce each risk to a level that the Trustees considei's to be a¢¢¢plable. The major financial risks are each subject lo ongoing monitoring and management. Income and ¢ost control are subject to ongoing review on at least a qiiart¢rly basis with prioi. approval of the Board needed for signifi¢ant cost activities. Page 4
Nilkanth Estat¢s Report of the Trustees For the year ended 31, Decemb¢r 2024 The following sections provide details regarding the Groiip's exposure to the above-mentioned financial risks and Ihe objectives, policies and piDcesses for the managemeiit of th¢se risks. (a) Credit risk Credit risk is the risk of loss that may arise on outstanding financial instrumeiits should a counterparty default on ils obligations. Such credit risk would arise primarily from trade and other receivables. The Group's ti'ade debtors are miniinal and other debtors relat¢ to payments on account ofconsli'iiction woi'k 01) cet1aiii of its existing propeities. Conseqiienily, the Gioiip considers its credit risk to be minimal. For cash and bank balances, the Group Ininlllli5es credit risk by dealing exclusively witl) high ci'edit rating financial inslittitions. (b) Liquidity risk Liquidity I'isk is the risk that the Group will en¢ounter difficulty in meeting financial obligatioi)s diie to shortage of fiinds. The Group has no debt or other significant financial obligations and maintains sufficient liquid cash resources to meet its operating ¢ash flows. (e) Interest rate I'isk Interest rate risk is the risk that the fair value or future cash flows of the Groiip's financial inslriiments will fluctuate becaiise of changes in market interest rates. The Groiip has no inlerest-bearing boiTowings and as such ha5 no exrM)sure to inteirsl rate risk. As the Group has no significant interest-bearing financial assets, ils income and operating casli flows ar¢ substantially independent of chaiiges in market interest rates. The Groiip's interest bearing financial assets are mainly short temi in nature. Internal Control The Trustees have overall reSpo11b]I1ty for ensuring that the Group has appropriate systems of internal controls across the entire organisation. The systems of internal control are designed to pi'ovide reasonable, but not absolute, assurance against malerial mi55tatement or loss. Internal control processes itnplemenled by the Trustees includ¢: Prodiiclion of monthly management accounts and review of financial results and perfomance indicators by the Triistees at tnonthly me¢tings. Delegation of authority and segregation of duties. Identifi¢ation and management of risk. Future plans Nilkanih Estates continue to seek suitable investment propeities to devclop its portfolio. With the support of donations from Sarjudas Fouiidalion and Slirplus rcntal income from its investment properties. the Group intends to acquire furth¢r investment ptY)perties and support the activities of BAPS who share ¢ommon ain]5 and objectives. Sub5idi#ry Undertaking: Nilkanth Estates also holds wholly-conlrolled subsidiary, Brandon House Limited. Brandon Hous¢ Lim ited has same objects as the Nilkanth Estates. Bi'andon Hoiise Limited holds a mixed_use asscls, Brandon House, parl of which is I'eiit¢d out commercially and thiis accounted for as an investment, and part of which is used for op¢rational purposes and thus accounted for as a taiigible fixed asset. The principal risks are similar to the ones highlighted for the groiip in the section below. Page 5
Nilkanth Estates Report of the Trustees For the year ended 31, December 2024 srRUCTURE, MANAGEIIIENT AND GOVERNANCE Governing document Nilkanth Esiat¢s is a registered Charity (number 1148431) under the Chariiies Act 2011 and is a charitable organisalion in¢orporated in England on 24 July 2012 as a company limited by guarantee linder Cotnpany number 08154119. The Charity is controlled by its goveiming document, Memorandum and Articles of Association. Trustees There were 3 trustees during the year. The trustees have responsibility for meeting the Group's Charitable obligations and objectives. Chang¢s in Ti'ustees during thc year ar¢ provided below. Under the IEquirem¢nts of the Memorandum and Articles of Association of the Charity, trustees are elected to serve for a period of three years aftei. which they must bc -¢lected. Subject to article 20A, the ti'ustees may appoint new and additional trLlStecs by a I'esoliition of the Trustees passed al a Trustee meeting. These individuals work alongside existing Trustees for a period of three years beforc being ¢onsidered for appointment. Ongoing training is received by the trustees through attendance 8t ¢oiirses and being provided with relevant information from varioiis resources, as required. All trustees give their time voliintarily cind receive no muneration or benefits from the Charity. As th¢ Imstees atr the key managemeiit p¢rsonnel of the Charity and are not remunerated, there is no remuneration policy for key management pe]sonnel. Operation The Board of Trustees, which can have up to 7 members, administers the Group. Ther¢ is on¢ full time trustee {Mr G P Patel) who is supported by two full-titne administrators appointed by the trustees to manage the day-to-day operations of the Group. To facilit1£ te effective operations, the administrators have d¢l¢gated authority, within tertns of the delegation approved by the trustces, for op¢rational mattel's Slich as finance. Most trLlStees are already familiar with the pi'a¢li¢al work of the Group having been involved in vai'ious activities themselves as voliinteers. Additionally, n¢w triistees are invited and en¢oiiraged to attend a series of training sessions to familiai'ise themselves with the Group and the context within which it operates. These are jointly lcd by the Chair of the Board of Triistees. All trustees give their titne volLintarily and receive no remuneration or b¢nefils from the Group. Attendance #t bDard meetings The board meets when nccessary bul seeks to meet fortnighily at least. Dliring the year. all trustees attended IOOO/o of all tneetings. Page 6
Nilkanth Estates Report of tht Trustees For the year ended 31$1 December 2024 Statement of Trustees, Responsibilitie5 The Trustees are responsible for preparing the Trustees, Report, the Group Strategic Report and the consolidated financial statements in accordance with applicabl¢ law and United Kingdom Accounting Standards (United Kingdom Genei'ally Accepted Accounting Practice). The la¥v applicable to chai'ilies in England & Wales requircs the TNst¢¢s to pi'epare financial stateinents for each financial year which give a true and fair view of the slate of affai of the Charity and the Group, and of Ihc ineoming resources and application of resoiirces of the Charity and the Groiip for that period. In preparing these financial statements, the Ti'ustees al'e reqiiired to.. select siiitable accoiinting policies and then apply them consistenily. observe the methods and prii)ciples in the Charities Statement of Recotnm¢nded Practice on Accounting and Reporting. make judgeinents and eslimales that are I'easoiiable and prudent. slal¢ whether applicable accounting standards have been followed, subje¢t to any material departures disclosed and explained in the financial statements; prepai'e the financial sralements on the goiiig concern basis unless it is inappropriate lo presume that the Charity will continue to operate. The Triistees are responsible for maintaining adequate ac¢ounting records that disclose with Irasonable accuracy at any time the financial position of the Chai'ity and the Group and enable them to ensure the financial statemeiits comply with the Companies Act 2006. They are also responsible for safegLiarding the assets of the Charity and the GroLlP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement as to Disclosure of Inforn)ation to Auditors The TrLlStees who were in office on the date of approval of these financial statements have confinned, as far a5 they are aware, that there is no relevant audit information of which the auditors are unawar¢. Each of the Trustees have confirmed tliat they have taken all the steps Il)at they ought to have takcn as Trustees in order to mak¢ th¢tns¢lv¢s aware of any I'¢levant audit infotination 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 b¢nefit'Charities and Public Benefit, and, in particular the supplementary guidance for charities whose aims in¢lude advancing religion 'The Advancement of Religioii foi. the Piiblic Benefit, and have regard to that guidance wh¢n reviewing the Group 's aims and objectives and in planning fiitUlE activities. We are confid¢nt that, by pi'oviding financial resources to siippoit the woi'k of BAPS and other similar charities which shal'e the comtnon objective of advancement of the Akshar Pui'iishottam Swaininai'ayan denoinination of the Hindu faith, we help to promote th¢ faith more effectively, al a national level. and in individual c¢ntres, and that in doing so provide a benefit to the public by.. providing facilitie5 for public worship, spiritual, moral and intellectual development both thos¢ who wish to knefit from what the what the Group offers- and through its support of BAPS, promoting Hindu values and service by tnembers of BAPS in and lo their communilies, to the ben¢fit of individuals and so¢i¢ty as a whole. Events since the end of the year Infomiation relating to events since the end of the year is given in the notes to ihe financial slat¢m¢nls. Page 7
Nilkanth Estates Report of the Trustees For the year ended 315t De¢¢mber 2024 Related parties and relationships with other organisations Nilkantli Estales is related to both Sarjudas Foundation and BAPS Swaminarayan Saiistha, and ther¢ is a trustee in common with BAPS Swaminarayan Sansiha. all Ihi'ee charities share the saine objectives. In 2024, the Chai'ity I'eceived graiits of £3.025m (2023 £Nil) froin Sarjudas Foiindation and continiied to provide BAPS with premises from which to hold congregations etc in the advanccmenl of their obje¢lives. During the year the Charity provided a loan of £Nil (2023: £2.2m) to the Sarjiidas foundation, in furtherance of charitable objects of Nilkanih Estates. The loan ivas iiltcrest-free, unseciired and repayable on demand. This was repaid in full in 2024. During the year the Charity paid granl of £2.2m lo the Sarjudas Foundalioi), in furtherance of the charitable objects of Nilkanih Estates. BAPS occupies a nU[nr of properties owned by Nilkanih Estates for whi¢h no rent is payable. Reference and administrative details Registered Company number: 08154119 (England and Wales) Registered Cbarity number: 1148431 Trustees: Mr. G.P Patel A¢¢oiintant Mr. S J Kara Director of Sh'ategic Alliances- IT Services Biisinessman Hotelier MrG Ramparia Mr K Bhattessa Registered office: I, Pramukh Swami Road, Ncasden, London, England, NWIO 8HW Country of registration: England Auditors: MHA Sixtt] fl(ior 2 London Wall Place London EC2Y SAU Principal Bankers: The Royal Bank of S¢otland plc 354 Station Road Haiiow HAI 3XZ Solicitors: Hugh cavrIght & Amiti 12 John Street Londoii WCIN 2EB Page 8
Nilkanth E5thte5 Report of ¢be Trnstees Forthe )'ear ended 315t December 2024 AUDrroRS Th¢ auditors. NQIA. will b¢ prop)JeAt for rcpp)tntm¢nl 1¢ th¢ forthc8 Ann1 G¢nwAi Mc¢18 following th¢irapp)inIml dwing th¢y¢ar. RoF¥)rt of the trustee5. incowalin8 a strato¢ r¢rt aA)roved ty ord¢rot¢l b)Ard of trug¢t¢s. as th¢ ¢omp8ny diT¢¢tors. on 31" tolr 2025 and SI on the boord's Etho]f by.. Mr G R4mp4rl4- Truit¢t Pag• 9
Nilkanth Estates Report of the Independent Auditors For the year cnded 31, December 2024 Opinion We hav¢ aiidited the financial statements of Nilkanih Esiales (the 'parent cliaritable company,) and its siibsidiary (the 'group') for the year ended 31 December 2024 which comprise the Consolidal¢d and Charity Statement of Financial A¢tivities, the Consolidated and Chai'ity Balance Sheets, the Consolidatcd and Charity Statement of Cash Flows and notes to the financial slalements, inclLidin¥ significant accountiiig policies. The tinancial I'¢porting fraineivork that has been applied in Ih¢ii' pi'eparatioii is applicable laiv and United Kingdom Accounting Standards, incliiding Finan¢ial Repoiting Standard 102 The Fincincicil Repui'ling Siaiidard applicable iii the UK and Repiihlic ofIreland{United Kingdom Gencrally Accepted Accounting Pra¢tice). In our opinion the financial stalements.. give a tnie and fair view of the stale of th¢ ftroup's aiid parent ¢haritable company's affairs as at 31 Decetnber 2024. and of their incoming resources and cipplication of Irsources, including their income and e.xpenditure. for the yeai. then ended; have been properly prepared in accordan¢¢ ivith United Kingdom Generally Accepted Accoiinling Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We condiicted our aiidit in accordance with International Standards on Aiiditing (UK) (ISAS {UK)) and applicable lalv. Oiir I'esponsibilities under those standards are fiiiiher described in the Auditor's Responsibilities for the audit of the financial statements section of our report. We are iiidependent of the group and parent charitable company in accordance with the ethical IEquiremenis that are relevant to our audit of the finan¢ial statemei)ts in the UK, incliiding the FRC'S Ethical Standard, and we have flilfilled oui. other ethical responsibilities in accordance with these reqiiiremenls. We believe that the audit evidence we have obtained is sufficicnt and appropriate to provide a basis for OLir opinion. Conclusions i'elating to going eoneern In auditing the financial statements, we have concluded that the Trustees, use of the going concei'n basis of accountii)g in the preparation of the fiiiancial statements is appropriate. Our evaliiation of the Triisle¢s' assessment of the entity's ability to ¢ontinLie to adopt the going conceri) basis of a¢¢ounÉing included ¢rili¢al reviews of their futui'e investment slratcgy and expected investment income. Based on the work we have perfomied, we hav¢ not identified any material uncertaintie5 lating to events oi. conditions that, individiially oi. collectively, may cast significant doubt on the chai'ilable company's ability to continue as a going ¢on¢¢rn for a period of at least twelve months fiom when the financial statements are a41thorised foi. issu¢. OLir responsibililies and the responsibilities of the Trustees with resp¢¢t to going concern are described in the relevant sections of this report. Othei. information The other infonnation comprises the infoimation included in the annual i'eport other Ihan the financial statements and oui. auditor's report Iliereon. The ti'ustees are responsible for the other inforination ¢onlained within the annual report. Oui. opiiiion 01) the financial statements does not cover the other information and, except to the extent otlierwise explicitly slated in our repoit, we do i)ot expiEss any foim of assurancc con¢liision thereon. Page 10
Nilkanth Estates Report of the Independent Auditors For the year ended 3151 Dccember 2024 Our responsibility is to read the other infoiThation atKi, in doing so, consider whether the other infomiation is materially in¢onsist¢nt with the financial statements or our knowledge obtained in the cou15e of the audit, or otherwise appears to be materially misstated. If we identify su¢h material inconsistencies or appant material misstateinents, we are required to determin¢ whether this gives rise to a material Inisstatement in thc financial stalcmenls themselves. If, based on the woi'k we have perfonned: we conclude that thei'e is a Inaterial misstatemenl of Il)is other inforn)ation, we are reqiiired to report that fact. We have nothing lo report in this regard. Opinions on other mi)tters pres¢ribed by the Cotnpanies Act 2006 In our opinion. based on the work und¢rlak¢n in tl)e course of the audit.. the inforniation given in the Trnstees, report (incoip)rating the Directors, repoit aiid Sti'alegic report) for the financial yeai. for which the financial statements are prepared is consistent with the financial statements. and Ilie TrLlStees' repoit (incoiyoi'ating the Directors. report and Strategic report) has b¢¢n prepared in accordance with applicable legal r¢qLiirements. Matters on Ivhieh we are required to report by exception In the light of our knowledge and understanding of the group and parent charitable company and its environent obtained in the coiirse of the audit, we have not identified material misstatetnents in the Dire¢toi3' report. We have nothing to report in respect of the following Matte in relation to which the Cotnpanies Act 2006 requires us to Itport io you if, in our opinion.. adeqiiate accounting records have not been kept bs the parent charitable company, or relurns adequate for our audit have not been received from branches not visited by us; or the parent charitable ¢ompany's financial statements are nol in agreement with the accounting records and retiirns. or certain disclosures of Directors, remuneration specified by law are not made. or we have not received all Ihe inforniation and explanations we require for Olir audit. Responsibilities of Trustees As explaincd more fiilly in the Trustccs, responsibilities statemenl incliided in the TrLlStees' Annual Report, the Trustees (who are also tl)e DiiECtors of the charitable company for tlie purposes of cotnpany law) ar¢ sponsible for tl)e pi'epai'ation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees det¢mine is n¢¢¢$sY to enable the prepai'ation of financial statements tliat are free from material misstatement, whether due to fraud or error. In preparing the financial slalements, the Triistees are responsible for assessing the group's and parent charitable company's ability to eoniinue as a going concern, disclosing, as applicable. matters related to going concei'n and iising the going conc¢rn basis of accoiinting unles5 thc Triistees either intend to liquidate the groiip or the pattnr charitable company or to cease operations, oi. hav¢ no r¢alisli¢ alternative but to do so. Page11
Nilkanth Estates Report of the Independcnt Auditors For the year ended 3151 December 2024 Auditor's responsibilities for the audit of the financial statements Our objectives are io obtain reasonable assurance about wlieihei. the financial statements as a whole are free frotn material misslalement, whether due to fraLid or ¢ri'or, and to issiie an aliditor's report that incliides oiir opinion. Reasonable assurance is a high level of assurance, bLIt is noi a guarantee that an audit condLlCted in accordance with ISAS (UK} will always detect a material misststement when it ¢xisls. Misstatements can arise from fraud or error and are consideiEd material if, individiially oi. in the aggregaie, they could reasonably be expccted lo ii)fluence the economic decisions of users taken on the basis of these financial stalements. Irregiilarities, inclLiding fitud, al'e instances of non-compliance with laws and regulations. We design procedures in line with our respoiisibililics, Outlined above, to detect mat¢rial misstatements in respect of iii'egiilarilies, in¢liiding fraud. The specific procedures for this engagement and tlie extent lo which these are capable of det¢¢ting irr¢giilarities, inclLidiiig fiaud is detailed below.. Obtaining an understanding of the legal and regulatory frameworks that the entity opei'ales in, fo¢using on those laws and regulations that had a diiECt effect 01) th¢ financial statements; Enquiiy ot those cliarged with govemance concerning any instances of knowm or suspected instances of fraud; Enqiiiry of those charged with govemance concerning actlial and potential litigation and claims; Enquiiy of those charged with governance ¢on¢¢ming any instances of non-coinplian¢e with laws and regulations; Reviewing the design and implem¢nlalion of control systems in pla¢e' Testing th¢ opei'ational effectiveiiess of the conti'ols. Performing aiidil work over the risk of management override of controls, including testing ofjoumal entries and otlier adjLlStments for appropriateness: Evaluating the bLisiness raiionale of significant transactions outside the nonnal course of business and reviewing accounting estimal¢s for bi8S' Reviewing minlltes of me¢lings of those charged with governan¢e; Revieiving financial statemeiit disclosures and testing to supportiiig documentation to assess compliance with applicable laws and regiilations. BecaLise of the inherent limitations of an audit, there is a risk that we will not detect all irregularitie8 iiicluding those leading to a material misstatement in the finan¢ial statements 01. non-cotnplianee with regiilation. This risk increases the Tn0 that ¢ompliance with a law oi. regulation is reinoved fi'om tl)¢ events and transactions reflected in the financial statements, as wc will be less likely to become aware of instances of non-coinpliance. The risk is also gJEater regarding iiyegularities occuri'ii)g due to fraiid rather than eiior, as fi'aud involves intentional concealment, forgery> colliision, omission or misrepresentalion. A further description of our responsibilities foi. the aiidit of the financial statements is locat¢d on tl)e Financial R¢poiting Council's website al.. https.'//www.frc.org.uklOiir-Work/AudiVAudit-and-assurance/Siandards-and_ guidancelsiandards-ai)d-guidanc¢-For-auditors/Aiiditors-respollsibilities-for-aiiditlDescription-of-auditors- responsibiliti¢s-for-audit.aspx. This description fomis part of oui. auditor's report. Use of this report This report is Inade sol¢ly to the charitable company's members, as a bodyy in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has beei) undertaken so that we might state to the charitable coinpany's m¢mbcrs thos¢ matters we air required to state to thetn in an auditoi s report and for no other purpose. To th¢ fiillest ext¢nt p¢miitted by law, we do not accept or assiime responsibility lo anyone other than the charitable company and the ¢haritable company's members as a body, for our aiidit work, forthis report, or for the opinions we have fomed. Page 12
Nilkanth Estates Report of the Independent Auditors For the year ended 3151 December 2024 £thLA Sudhir Singh FCA {Senior Statutory Auditor) For and on behalf of MHA, Statutory Auditor London, United Kiiigdom Dat¢.. 31 October 2025 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales {regislered number OC455542). Page 13
Nilkanth Estates Consolid¥ted And Charity Statement of Financial Activities (incorporating an income 8nd expenditure account) For tlie yeai- ended 31st December 2024 The Group unrestrieted funds The Charity ullrestricted funds 2024 2023 Notes 2024 2023 Income from: t)onations and legacies Inveslinent income Other 3,025,000 1,533,704 279,000 3,025,000 1.077,587 279,000 1,554,189 1,030,205 Total ineome 4,837,704 1,554,189 4J81587 1.030,205 Expenditure on: Raisin&i fiinds ChaTltable a¢iivities'. Provision of facilities Provision of Grants 728J14 373,024 691,988 318,628 1,223,208 2,200,000 1,147,698 1,187,129 5.642,094 1.118,764 Total expenditure 4,151522 1,520,722 7.521,211 1,437,392 Net incomel(expenditure) before nel los¥es un Investments 686,182 33,467 (3,139,624) 1407,187) Gainsl{losses} on revaluation and reclassification of fixed assets (1,571,551) 17&449 Net movement in funds (885J69) 33,467 {2,961,175) (407,187) Funds brought forward 100,401,972 100.368,505 88,666,981 89,074,168 Funds carried fonvard 18 99516,603 100,401,972 85,705,806 88,666,981 The total funds of the Company were utuestri¢led. Th¢r¢ were no restricted or designated fLinds during tlie yeai. oi. for the Previous year. All of the above results are deTived from ¢onlinuing activities. There were no recogni5ed gains or losses other than those stated above. The apnded notes for part of these a¢¢ounts. Page 14
NMknn(h E¥latsJ Compwntht)er08154119 Consoudated and ThaTIty Baifjn¢t Sheets at 31 Dec¢mber 2024 Th¢Group Tho Chfjrjty 2024 2023 Nots$ Ftsed sjseti.. TgT¥8ibleaJg¢ts luvethentproperfi¢8 12 13 14 $6.197J67 31941.347 8,2500 S3.8.632 31,416,347 iO.IxKj,x 50264313 52,177,872 2Wlh64 25,4106.464 96J8&714 95241.979 7A194777 77.584336 Current amets.. 16 1.390,018 1481.146 2,386,069 3.112.338 7,475.181 2a04,410 &834,251 1489rn23 C•thitboJ thttd inharyl 071.164 5.498,407 9.779591 11 )2474 LIAbllltks: with1[ year 17 (943,276) (33&414} 1268362) (241.430) Net ¢urrtnt asjtts 1127 S.IS9,993 9JllJ129 11,082.644 Totalts1 ¢llrreDt Ilabllltl 99,516h03 IQJ.401,972 85.705M06 S866.961 Totttlnetw¥¢ts 99,516,603 IIYJ,401.972 85.70S&J6 88.665,981 FuDdL' 18 99,516,603 1(Q.401.972 85,711$806 88.666.981 Totul fun 99JIfj603 1(A),40I,9T2 8S70S806 88&66,981 The (Iroup'& fsnanoi&l sthtetn¢ntshav¢ ixenpr4pored ju¢01a¢ withtheprovi5i¢n8atpli¢abJ• to ooropBtii subjectto thG Al¢OMT1es r¢wie. The fuw10i at¢mentswor• approved by the Bosrdof Tnon31°OoteFr 2025 andMW¢ siwdonits h&bY.. /J GPP•td GR TTU5t• Pag•15
Nilk#nth Estates Consoli(lated and Charity Statement of Cash Flows For the year ended 31 Deeember 2024 The Croup 2024 The Charlty 2024 2023 2023 Notes Net cash provided byl operating activities 19 3,204J07 777,347 (660,290) 400,413 Cash flows from investing xetivities: Dividends, interest, and rents IE¢eived from inve5tm¢i)ts Purchase of tangible fixed Sets Salclgrant of tangible fixed assets Purchase of InVtMent propety 74,795 {3,910,292) 74.795 (3,042,012) 3,442,094 (337.689) (337,689) {7,926} Net Cash provided byl(u$ed in) investing activities {3,83S,497) 1345.615) 474,877 (337,6891 Change in cash and cash equivalents in the year 1631.192) 431.732 (185,413) 62,724 Cash and cash equivalenis at the beginning of the year 3,112,338 2.680.606 2,489,704 2,426,980 Cash and cash equivalent5 41 the end of the year 2,481,146 3,112,338 2,304,291 2,489,704 ANALYSIS OF CHANCES IN NET DEBT (No Debt is held by tbe Charity and Group) Asat31 December 2024 Asatol January 2024 Group Cash flows Cash at bat and in hand 3.112.338 (631,192) 2.481.146 3,112J38 (631,192) 2,481,146 Charlty Cash at bank and in hand 2,489,704 1185,413) 2.304,291 2,489,704 {185,413) 2,304,291 Page 16
Nilkanth Estates Notes to the Consolidated financial statements For the year ended 31 December 2024 Accounting polieies Basis of preparation The financial staleinents of tlie charitable company. have been prepared in accordan¢e with the Charities SORP {FRS 102) 'Accountin¥ and Repoiting by Charities.. Statement of Recommcnd¢d Practice applicable to charities preparing iheir accounts in accordance with the Financial Reporting Standard applicable in ihe UK and Republic of Ireland IFRS 1021 (issued in October 2019),, Financial Reporting Standard 102 'The Financial Reporting Siandard applicable in the UK and Republic of Ireland. and the Companies Act 2006. The financial staiements have been prepared under the histoi'ical cost convention, as modified by the revaluation of certain sets. (a) The functional and presentation cunEn¢y is UK Pound Sterling {£). The5c finan¢ial statements consolidate the results of the Charity and its wholly-controlled subsidi8ry on a line by line b75. Ti'ansactions and balances betwecn Ihc Charity and its Slibsidiary have been eliminated from the consolidated financial statements. Balances between the enlilies are disclosed in the note5 of thc Charity's balance sheet. Ib) Public benefit entlty The Chai'ity and ils wholly-controlled subsidiary Ineet the definition of a public benefit entity under Charities SORP (FRS 102). Ic) Going concern The majoi'ity of the income received from by the Groiip is investment income from lis investmeni property portfolio which are let to social liousing providers. Tl)e Group has continued to receive income based on its investment in propeilies over the yea. Tlie Charity has ininimal on-goiiig legal or con5tNctive coinmiiments. Theit are no uncertainties. material or otherwise, regai'ding the GiY)up's going concern. The trustees therefore have reasonable cxpeciation that the Group has adeqiiate resources io continiie in op¢i?tional existence for the foirsecable futiire which exceeds12 months froin the dale c>f signing of the financial statements and Ilierefore contiiiue to adopt the going concern basis of accoiinting in preparing the annLial consolidated financial stateinents. (d) Income All income is recognised iii the Stateinent of Financial Activities once the Group has entitlement to the funds. it is probable tliat the income will be received and tliat the ainoiint can be measiired reliably. Voluntary incoine eomprises revenues generated frotn vaTiOUS forms of donations. Investment income in¢ludes income generated fTom propeTty investment and interest received on cash deposits. {e} Donations of gift4 services and facilities Donated professional services and donated facililtes are Tecognised as income when the group ha5 ¢ontrol over the item or received Ihe service, any conditioiis a5so¢ial¢d with the donation have been Inet, Ilie receipt of economic bet)efit from the iise by the group of the item is probable and that econoinic benefit can be measured ieliably. In a¢coi.dance with the Charities SORP (FRS 102), voliinteer time is not recognised so Irfer io the triistees, anniial report for more information about their contribiition. On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift lo the gi'oup wliich is the atnounl the groiip would have been willing to pay to obtain setvices or facilities of equivalent economic ben¢fit on the open market. a cori'espondiiig amount is then ircognised in expenditure in the period of re¢eipi. Page 17
Nilkanth Estates Notes to the Consolidated financithl statements For the year ended 31 December 2024 Accounting policies (eontinued) (o Expenditure and irrecoverxble VAT Expenditure is recogniscd once ihere is a legal or ¢onstructive obligation to Tnak¢ a payment to a third party, it is probable that 5ettleTnenl will be requiiEd and th¢ amount of the obligation ¢an be measured reliably. Expendiiure is classified under the following activity headings.. Costs of raising funds which relates to the investment management COStS. Expendiliire on charitable activities which includes grants and the cost5 of activities undertaken to fiirthcr the PUTposes of the Charity, and their associated suppoi'l Costs including governance costs and d¢pr¢ciation of tangible fixed assets. Expenditiire is accounted for on an acci'lials basis and has beeii classified linder hcadings that aggregalc all cost related to the category. Where costs cannot be dire¢ily attributed to particular headings they have been allocated to activities oli a bas15 consistent with the use of resources. IrrecoveTable VA T is charged as a cost against the activity for which the expenditure was incurred. (g) Grant making Grants payable a charged in the year when the offer 15 made except in those cases where the offer is conditional - such granis are recogiiised as expenditure when conditions attached are fulfilled. (h) Allocation of support eosts All support costs are allocated to the expenditure on charitable activili¢s as none of these costs are allocable to the costs of raising funds. which air thc investment management ¢osts. Support costs include governance ¢osis, which are the costs associated with the gov¢mance arrangeinents of the Charity. These costs are a550¢iated with constitutional and statutory requirements and include any cost5 associated with the strategic management of the group's activities. Total support costs have been allocated entirely to the Provision of facilities chai'itable activity- tlie Trustees believe that the portion which should be allocated to lh¢ Grants charitable a¢iivity to be immaterial. Taxation The group is exempl fi'om corporation l&x on its charitable activities. ti) Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £ 1,000. Depreciation costs are allocated lo activities on the knis of th¢ use of the related assets in those activities. Assets are reviewed for impairment if circuin51ances indicate tlieir carrying value may cxceed their net realisable value and value in use. Depre¢iation is provided ai rates calculated io write down the cost of each asset to its estimated residual value over its expeeted iiseful life. The depreciation raies in L)se are a5 follows.. FTeehold buildings 20/0 on cost Freehold18nd is not depreciated. (k) Investmelll properties Investment properties are measured at fair valiie at each reporting date and are not depreciated. Page 18
Nilk#nth Estate$ Notes to the Consolidated financial statements For the year ended 31 December 2024 Cash investments Cash held in fixed term dewsii accounts exceeding one year are ¢IsifIed as fixed asset investments as they are generally held with tlie overall intention of long temi retention for ihe continiiing beTtefit of ihe group in the form of income and capital appreciation. Debtors Trade and otherdebtors are recognised at the settlement amouni due after any trdde discount off¢ird. Prepayments air valued at the amoiint pr¢paid net of any trade discounts due. Loans which have beeii provided with an interest rate below th¢ mai'ket rate and for charitable purposes are deeined ¢on¢essionary loans. {ml Cash at bank and in hand Cash at bank and cash in hand incliid¢s cash and short term highly liquid investments with a short maturity of three months or less from the date Of a¢quisition or opening of the d¢posil or similar account. Cash balances exclLide any funds held on behalf of service users. In) Creditors #nd provisions CreditOTS and provisions are recogtjised ivhere the group has a pSent obligation resulting from a past event that will probably I'esult in the Iranster of funds lo a third party and the amount diie to settle thc obligation can be measured or estimated reliably. CTediloi's and provisions are nortnally 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 qiialify as basic financial instruments. Basi¢ financial insti'uments are initially I'ecogni5ed at tTansaction value and SLibsequently measiired at their settlement value with the ex¢eption of bank loans which arc siibsequently measured at amortised cost using lh¢ effective interest Tnelhod. lo) Fund accounting Unresti'icted funds can be iised in accordance with Ihc charitable objectives ai the discretion of the trustees. Restricted funds Can only be used for particular restricted purposes within th¢ objects of the Charity. Restrictions arise when specified by the donor or when fiinds are i?ised for particular resiri¢ted purposes. Critical accounting estimates and judgements The Group Tllakes ¢ertain estimates and assumptions regarding the future. Estimates and jiidgements are continually evaliiated based on historical experience and other factOTS, Including the expectations of futiir¢ Cvents thai are believed to be reasonable under the ¢ircumstances. In the future, actual experience may diffei. fix)rn these estimates and assumptions. The eslimates and assiimptions thai have a significant risk of causing a material adjustment to th¢ ¢arrying amounts of assets and liabilities within th¢ next financial year are discussed below.. liivestmeiil Properlies Investinent properties ivhose fair value can be measured reliably without undue cost or effort should be m¢a8ured at fair valu¢ at the year end with any changes in fair value IE¢ognised in the statement of financial a¢livities. The investment properties have been valued by the tru5tecs at the period-end based on their knowledge of the properties and their location and having conducted iiifornial market IEsear¢h considerii)g comparable properties. Following their a5sessm¢nt, they have concluded that there has been no material change in the fair value since the pitvious valuation, with the exception of one investment property whose fail. value is considered to have inciEased by £2.6m since the Previous year-end, following an independent valuation by RICS-accTediied chartered siirveyor. A change in the assumptions Lised by the trustees may result in a change in the value of investment properties. Page 19
Nilkanih Estates Notes to the Consolidated financial statements For the year ended 31 December 2024 Critical aecountjDg estimates and judgemellts continued FreeliolilProperty The Groiip aiid the Charity hold fiEehold land and bLiilding5. The freehold buildings are depreciated over a period of 50 years whilsi land is not depreciated as lis value is not likely to diminish over time. The Group caimes oiil regular maintenance of its freehold properties and therefore it is likely Ilial the lfUl live5 of the property Inay ¢xceed So years. The trustees have been reqiiired. in the ab5en¢¢ of a split of purclwe cost, to estimate the allocation of the cost of these propeities between the relative elements attribLltable to land, which is not depiEciated, and biiildings. Having consulted with property professionals, considered statiitory provisions, and researched InaTkcl factors, the trustees consider 30% of the acqiiisition cost of each tangible fixed asset to repirsent land and 7/0 to represent buildings. As such, 30Vo of the cost of each tangible fixed asset property is not depreciated. Income from donations and legAcies Group Charity 2024 2023 2024 2023 Donations 3,025,O¢X) 3,025,000 Included within Doi)ations above is a donated assei valued at £1,025,000. Incotlle from investments Group Chorlty 2024 2023 2024 2023 Rental income- operating leases Interest incotne 1,458.909 74.795 1,554.189 1,002,792 74,795 1.030.205 1.533,704 1,554,189 1,077,587 1,030.205 Other Income Group Charity 2024 2023 2024 2023 Loan impaim¢nt reversal 279,000 279,000 279,000 279,1)00 As detailed in Note 20, the Charity has provided a loan to its subsidiaiy, Biandon HoL15e LiTniled. A provision against this loan, which represented a portion of interest accrued on the loan LIP until the date the loan became iiiterest-free biit which the Charity previollY had not sought repayment of, has been removed during the year. Page 20
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Nilkanth Estates Notes to the Consoli(lated finan¢ial statetnents For the year ended 31 De¢ember 2024 Analysis of grants The grants detailed FKlow wer¢ made to institutions only Group Charity 2024 2023 2024 2023 Brandon House Limsled Sarjudas Foundation 3,442,094 2,200,000 2,200,000 2200,000 5,642,094 The grants awarded to Brandon HoLise Limited represents the nel book valiie of Old Gloucester StlEet property, which was transferred to Brandon House Limited diiring the year such that it could coniiniie the propety's ongoing redevelopment for lh¢ fijrtherance of both entitie5' miitual chai'itable objects. Tlie grant awarded to Sarjudas Foundation was to siipport its oiigoing construction of a Mandir in Paris. Nilkanth Estates and ihe Sarjudas Foundation have mutiial charitable objects. All granis were made in fiill during the year. Support COSt5 Group Charity 2024 2023 2024 2023 Provision of faciliti¢8 Governance costs (See note 8) Interest payable 1,192,008 31.200 1,124,844 22,800 54 1,167,929 19,200 1,100,764 18.000 1223,208 1,147,698 1,187,129 1,118.764 Govemance costs represent audito. remLineration only. Net incomel(expenditure) for the year Net ineomel(expenditure} foi. the year is stated after charging.. Group Charity 2024 2023 2024 2023 Depreciation of fixed ass¢ts- owned Auditors, remiineration (including V AT} Siatutory audit: Other services.. 1,192,008 1,124,844 1,167,927 1,100,764 25,200 7,200 22,800 19.200 18,000 Staff cost5 The Group does not have any employees. Its trle¢S are responsible for the govemance of the Group and give their time freely. Volunteers, in¢luding employees of The Sarjudas F(>undation and BAPS Charities, 'manage- the day-to-day operations of rhe Group. Whilst Ihe nature of the volunteers, time is not considered general, the monetary value of their time is not considered Inalerial and thus not recognised in the accounts. Page 23
Nilkanth Kstates Notes to the Consolidated finaneial statements For the year ended 31 December 2024 io. Trustees, remuneration and expenses Neiiher the Charity tTuslees nor the directors of the subsidiary were paid any remuneration, noi. did they receive any other benefits from employinenl Wlth the Groiip in tl)e year12023.. £nil). No Charity trustee re¢eived paymeni for professional or other services supplied to the Charity, noi. incurred or re¢¢ived trimbursed expenses. (2023- £nil)- ii. Taxation The group is exempt from corporation tax as all its incoine is charitable and is applied for charitable purposes. 12. T4ngible fixed assets Group Assets under consiru¢iion Freehold Pro Total Cost At start tsf the year Additions Disposals Reclassification 73,016,311 2,878,063 (5) I,J49) (400,7901 636,377 1,032,229 73.652,688 3.910,292 {551,349) 1400,790) At end of the year 74,942235 1,668,606 76,610,841 reciation At stall of the year Charge for the year Disposals Reclasgification 19,827,056 1,192,007 (551,3491 (54,240) 19,827.056 1,192,007 {551.349) (54,240) At end of the year 20,413,474 20,413,474 Net Book Values: At end of the year 54,528,761 1,668,606 56,197,367 At start of the year 53,189,255 636,377 53,825,632 In¢luded in cost or valuation of land and buildings is fRehold land of £1,128.373 (2023 £1,128,373) whi¢h is not depreciated. During the year, the Charity reclassified one of its properties. a tangible fixed asset began being let io eam rental income. Upon the reclassification of the tangible fixed asset to an investment property, the Charity assessed and increased the property's fair valuation- see noie 13 below. Page 24
Nilkanth Estates Notes to the Consolidated finaiicial Statements For the year ended 31 Deeember 2024 12. Tangible fixed assets (Cont'd) Charity Asse15 linder constriiciion Freehold Pro Total Cost At stall of the year Addition5 Disposals Granting of assets Rec)51r]¢aIiO 71,296.311 2,878,063 1551,349) (2,641,768) 141Jl.790} 636.377 71,932,688 163,949 3.042,012 (551,349) (8(X),326) (3,442,094) {400,7901 At end of the year 70,580,467 70,580,467 reciation At start of the year Charge for the y¢ar Disposals Reclassification 19,754.816 1,167.927 {551,349) {54,240) 19.754,816 1,167,927 (551,349) (54.240) At end of the year 20.317.154 20,317,154 Net Book Vallles: At end of the year 50,263,313 50,263,313 At start of the year 51,541,495 636,377 52,177,872 During the year, the chariry granted Old Gloucester street, property lo Brandon House Limited. This property is uiider construction and is intended for mixed use. 13. Investment properties The Group 2023 The Charity 2024 2023 2024 Market value At start of the year Additions Revaluation Reclassification 31,416,347 30,898.020 25,406,464 24.896.062 7,925 178,449 346,551 178,449 346,551 510,402 510,402 At end of the year 31,941J47 31,416,347 25,931,464 25,406,464 Investment pr()perties with an original c05t of £26.7m have been valiied at £31.94m by the trustees. The trustees of the Group perfom]ed an assessment of the maA(et value of its investment properties at the year- end. The trustees reviewed the presentation of the Brandon House propeny {Beddington Conference Ceiitre - BCC) al 31 DecemLxi' 2020. They rea55es5ed the presentation and considered it a mixed-use asset, the investinent part of which is re¢ognised at year-end fair value (see Note 14 below). Page 25
Nilkanth Estates Notes to ¢he Consolidated financial statements For the year ended 31 December 2024 14. Mixed-use assets The Group 2023 The Charity 2024 2023 2024 Fair value Ai siart of tl)e year Revaluation 10,000,ooo (1,750,000) 10,i)00,000 At end of the year 8,250,000 10,000,000 In line with financial reporting requiiEments. and at the year-end, the Trustees have reviewed ihe fair valiie of the element of the Brandon House property wliich 15 used for investment PLiwtsses. In doing so they have obtained an infomial valiiaiion from a FiICS-accredited piY)perty advisoi. wliich suggested that the fair value of the investment Pff)perty element of Brandon House was £8.25m. Accordingly, a loss on Itvaluaiion has been recognised. 15. Investments in subsidiaries Nilkanth Estates controls IOOQ/o of a charitable company. Brandon HoLise Liinited {Reg. Charity no. 1172517 and Coinpany no. 10612051), which was incorporated in England and Wales on 9 Febriiary 2017. Brandon Hoiise Limited is acompany limited by guarantee. It oivns three light industrial iiiiits and Beddington Conference Centre ('BCC'). The industrial iinils have been rented out to a single tenant oli a 10-year lease at an initial rent of £200,000 for the first year rising 10 £400,000 from the second year with rent Teview after i years. During the year Nilkanih estates granted 25 Gloucester Road, Londoii property io Brandon House Limited. On ompleiion of the construction works thi5 property. is inl¢nded lo liave mixed usage with part of it for ow'n PUTposes for furtherance of the Group's objectives and remaindei. to be rented on commercial basis. A summary of the financial statements of the Charity's subsidiary, Brandon House Limited 15 shown below- St#tement of financial activities 2024 2023 Income and Endowments from: Donations and legacies Investment income 3,442,094 456,117 523,984 Total income 3,898,211 523,984 I xpenditmre on: Raising funds Charitable activities- Provision of facilities {36,325) {36,0801 (54,448) (28,880) Total expenditure {72,405} (83,328) Gainsl(losses) revaluation of fixed assets (1,750,000) Net ineome 2,075.806 440.656 Page 26
Nilkanth Estates Notes to the Consolidated financial sta¢ementS For the year ended 31 December 2024 Balaftce sheet 2024 2023 Tangible assets Investment properties Mixed a55ets CLirrent assets Creditors due within one year Creditors due after more than one year 5,934.054 1,647,760 6,009.882 6,009,882 8,250.000 i 0,000,000 325.824 808,583 1424,711) (96,982) (6.563,251 } (6,913,251) Net assets 13,531,798 11,455,992 Nilkanth Investments Limited (Registered company no. 1571265) is wholly owned subsidiary of Nilkanih Estates. The company is currently dormant and therefore has been excluded from giY)up consolidation. Debtors 16. Group 2023 Charity 2024 2024 2023 Amounts falling diie within one year.. Trade Debtois Other debiors VA T recoverable Loans receivable PTepaymenis & accrued income 14,869 1.386,500 104,*64 19.768 166,301 1,082,500 2.200,000 2,2(Xl,000 84,385 79,430 1.590,018 2,386,069 1,161,930 2,2(x),00 Amounts falling due after more than one year: Concessionary loan 6,313,251 6,634,251 Aggregate Amounts 1,590,019 2,386,069 7,475,181 8.834,251 Nilkanth Estates provided a loan to its subsidiary, Brandon House Limited, of£8,201,331 in 2017 for the purchase of the subsidiary's propErty and to futth¢r both entities, charitable objectives. The loan.. incurred interest at 30/0 per annum LIP Lintil 31 December 2020 after which loan became interest free. is secured against the property- is repayable on demand, thougli the parent Charity has provided assurances that it will not be repayable until at least one year from 31 Deceinbcr 2024. Diiring the year loan of £600.000 was repaid. The Charity also provided a loan of £Nil {2023.. £2.2ml to Sarjudas Foundation dui'ing the yeaT, in furtherance of the charitable objects of Nilkanih Estates. The loan was interest-free, unsecLired and repavable on demand. As detailed in Note 20, the loan was repaid in full during the year. Page 27
Nilkanth Estates Notes to the Consoli(lated financial Statements For the year ended 31 December 2024 17. Creditors: Amounts falling due wiihin one year Group Charlty 2024 2023 2024 2023 Trade creditors Oth¢r creditors Loans payable VAT payable 614,133 79,143 250,000 246.163 92.175 258.273 10.289 231,289 76 943276 338,414 268,562 241,430 The group receiv¢d an interest fTee loan of £250.000 fiDm Sarjudas Foundation, and is irpayable on demand. The Sarjudas Foundation have the same aims and objectives and the same beneficiari¢s as Nilkanth Estaies. 18. Funds The Group 2023 The Charity 2024 2023 2024 Unrestricted funds At start of th¢ year Incoining r¢gources Resources expended Gain on revaluation of fixed assets 100.401,972 1 (X),368.505 88,666,981 89.074,168 4,837,704 1.554,189 4,381,587 1,030.205 14,151,522) (1,520.722) (7,521,211) (1,437,392) 11,571,551) 178,449 At end of the year 99,516,603 100,401,972 85,705,806 88,666,981 19. Reconciliation of net incomel(expenditure) lo net cash flow from operating activities Group Charity 2024 2023 2024 2023 Net income for the reporting period as per statement of financial 4¢tlvities) Depreciation 1.19•,007 Dividends, interest and rents (74,795} (Gaii)yloss on revaluatioii of fixed assets 1,571,551 (Incase)1decrease in debtors 796,050 {DeciEaseyincrease in creditors 604,863 (885,369) 33,467 (2,961,175) {407,187} 1,1*4,844 1,167,9•7 (74,795) (178,449) 1,359,070 27.132 1,100,764 (354,026) (26,938) (253,290) (39,874) Net Cash provided byl(used in) operating aetivities 3,204,307 777,347 {660,290) 400,413 Page 28
Nilkanth Estates Notes to the Consolidated financial statements For the year ended 31 December 2024 20. Related party Irinsacllons The Group has PTovided opei'ational and investment properties ivith a carrying value of £34.86m to The Sarjudas FoundatioD (and its wholly owned subsidiaries and group undei1akings) arKi BAPS ChaTlties rent- free, for a nominal rent amoiint, or on an am's lengiE] basis. A5 detailed in Note 16 above, the Chai'ity provided Ihe sarJUd Foundation with an interest-free, unsecured £2.2m loan in 2023, this loan was fully repaid dui'ing Ihe year. During the year the Nilkanih Estate5 paid grani of £2.2in to the Sarjudas Foundation. Th¢ Sarjiidas Foiindation and BAPS Charilies have the same aims and objectives and the same benefi¢iaries as Nilkanth Estates. BAPS occupies a niimbei. of pmperties owned by Nilkanth Estates for which no rent is payable. There are also common tl'LlSteesldircctoi"s among the three enliiies. The Chai'ity paid grant to Brandon House Limited by way of a property transfer. Net book value amounting to £3.442m, was transferred to BTandon House Limited from Nilkanth Estates. In 2017, Nilkanth Estates piovided a concessionary loan of £8,271,331 to Brandon House Limited, its wholly- controlled subsidiary. Of this loan, £8,201,331 was used to fund the purchase of the investment property held by this company. Interest on the loan was charged ai 30/0 per aiiiiuin up iintil 315t December 2020, and has been interest fr¢e since. The loan is repayable on an indeierniinate period. Nilkanth Estates has also provided financial support to Brandon House Limited so that the laner remains a going concern. 2024 2023 Balanc¢ Itceivable from Brandon House Ltd Iinpairinenl provision Cuinulaiiv¢ repayment 9,213251 9.213.251 1279,000) Diiring the year the Charity received £26,000 {2023.. £Nil) of rental income from a company, a director of which is also a Trustee of Nilkanth Estates. 21. Post Balance-sheet events The following properties were acquiTed by the Charity after the year-end.. Kestin House, 45 Crescent Road, Luton, LUI OAH_ £1.7m 2. Palace of John Whitgift School, Melville Avenue, Soiith Croydon CR2 7YN - £9.12m 3. Hounslow Conservative Club, Greshain Road, Hoiinslow TW3 4BX - £5m 4. 389-391 Honeypot Lane. Stanmore HA7 IJJ - £1.22m The Charity received grdnts totalling lo £16.8m after the y¢ar<nd from Sarjiidas Foiindation. 22. Legal statu$ of the Charity and its Sllbsidiaries The Charity is a company limited by guarantee and has no share capital. Its registered offi¢e address is I Pramukh Swami Road, Neasden, London NWIO 8HW. In the event of a winding up of the company, the liability of the trustees who are also the members ofihe company is limited to £1. Its 511bsidiary. B Tandon Holise Limited, is also a coinpany limited by guarantee. has no share capital and is also a registered Chai'ity. Nilkanth Estates is 11)¢ sole member of Brandon House LiTnited and the fonnei 5 liability in the event of a windsng up is limited to £1. The registered office address of the Subsidiary is Brnndon House, 104 College Road, Harrow HA I I BQ. Nilkanth Investments Liinited, is a dormant company which is IOOO/o owned by Nilkanth Estates. The registered office address of the subsidiary is Nilkanth Investments Limited, I Pramukh Swami Road, Neasden, London NWIO 8HW. Page 29