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2021-12-31-accounts

Charity Registration No. 1167954 (England and Wales) Company Registration No. CE007703 (England and Wales)

JCD FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

JCD FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr Chunilal Shah
Mr Paras Dodhia
Mrs Jayaben Dodhia
Mrs Hita Shah
Charity number 1167954
Registered office JCD Foundation
Suite 137
28A Church Road
Stanmore
HA7 4AW
Auditor Jeffreys Henry LLP
Finsgate 5-7 Cranwood Street
London
EC1V 9EE
Bankers Barclays bank Plc
1 Churchill Place
London
E14 5HP
Bank of Baroda
213 Kenton Road
Harrow
HA3 0HD

JCD FOUNDATION

CONTENTS

Page
Trustees' report 1 - 3
Independent auditor's report 4 - 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 11 - 14

JCD FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report and financial statements for the year ended 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1.1 to the accounts and comply with the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.

Objectives and activities

The object of the CIO is to advance such charitable purposes (according to the law of England and Wales) as the trustees see fit from time to time. Our purpose is to advance the education of young people for the public benefit by making fee grants, new school construction and school refurbishment projects that will allow students to access better quality education and infrastructure. This objective is achieved by making grants to other charities that serve this purpose.

Our organisation will make grants to other charities that relieve poverty by funding food, housing, medical and other emergency support to poor, disabled, elderly and people affected by natural disasters. Our organisation will make grants that fund food and shelter costs to protect animals and thereby prevent the animals from being sent to the slaughter houses or prevent death during natural disasters.

Our organisation will make grants to other charities that fund projects covering medical expenses for major and minor surgeries, medical camps and other healthcare programs which will help save lives and provide much needed healthcare for poor, disabled and elderly. Our organisation will make grants to other charities that advance the tenets of Jainism worldwide through education programs, support for Jain monks and nuns in India amongst other activities.

There have been no changes in the charity’s objectives during the year.

Strategy for meeting our charitable purpose

Our aim is to support energetic and highly efficient charities that deliver projects with a tangible impact on improving peoples/animals lives. Our strategy is to focus on children’s education, poverty relief, help disabled/ elderly, healthcare support, protect and save animals and advance tenets of Jainism. Our preference is to work on long term projects and maintain involvement and monitoring over time. Our initial focus is on working with a small number of charity organisations that we have researched thoroughly to ensure maximum impact and ease monitoring subject to strong project proposals. We focus on countries where we have developed local contacts and knowledge e.g., India, UK and Kenya.

Grant making policy

Our trustees are active in identifying and sourcing projects which resonate with our purpose. Our main source of local organisations and in turn projects to support will be direct visits to local charities and through reliable references and local contacts. Initial enquiries may be submitted by charities via email or post and further documents are then requested as part of a detailed due diligence process. We evaluate the local charity by vetting their trustees, site visits, review their historic projects, historic project delivery track record, ability to maintain ongoing projects e.g., long term school running.

We require documentation such as last three years annual reports, proof of registration, proof of ability to receive foreign funds, policy documents, details of historic projects completed and continuous feedback. As part of the detailed project selection process once the organisation has been approved we require the project to meet our purpose, have a tangible benefit in a cost effective manner, and have measurable outcomes and timely completion.

JCD FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

The CIO has granted funds totaling £1,399,176 during the period in line with the CIO’s objectives. In 2021, we supported various local projects through FCRA registered charities in India such as Shree Halari Visha Oswal Adi Jin Sewa Trust and Ujjaini Senior Citizens Forum. We have visited and researched all of the above organizations and monitored their work over many years.

The funds granted during 2021 were allocated to different projects in the following categories: supporting Jain monks and nuns, animal feeding and housing costs, helping poor families with food, medicine and housing, children’s education infrastructure projects, children’s ongoing school fees and the advancement of tenets of Jainism through support for infrastructure projects and spiritual retreats. We had a large number of small projects in 2021 due to the Covid-19 pandemic. Most of our activities were centered towards helping poor people during the lockdown and afterwards due to the rise in unemployment and other challenges due to the pandemic.

There is a lag effect between donation made and project implementation for some projects. Several projects were completed in 2021 from the funds donated in 2019 and 2020. The donations made in 2021 will lead to some projects being locally funded and completed in 2022 and 2023. The surplus funds held by the charity will be used to continue funding projects over the next five years.

Some of the projects supported in 2021 included:

Financial review

Cash reserves at the end of the year are adequate to support the continuation of current activities.

Risk Analysis

The trustees have assessed the major risks to which the charity is exposed to, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

JCD FOUNDATION TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 The charity Is controled ty its governing documeni I'Foundaiion' model constslubonl and constrtuies a Charit8b)e In￿rporated Organizalion dated 30th June 2016. The Irvslees have the p¢)wer to appoint addrtional Iruslees. a$ it considers fjl lo do so. Every future Irusiee shall be appointed by re¥olulion of the tru51ees passed at a properfy GDnvened meeting of the charty IYu$iees. Statement of Tw8tees' re8pon$lbllltl88 The Iruslees are responsible for preparing the Tru8lees' Report 8nd the finanoal slalements In 8ccoTdance with applicable law 8nd United Kingdom Accounling Standards (United Kingdom Generalty Accepted Accounting Practice). The law applicable lo charilies In Et)gland and Wales requires Ihe trustees to prepare finanual stalernenls lor each fnancial year wfiich give a true and fair view of Ihe slate of affairs of thanty and of the inconwng resources and application of resources of th& Chanty forthai year. In preparing these finana81 statements, Ihe trustees are required to.. - Select suiiaNe attounting poliryes and then appty Ihem con￿¥1*nty', - observe the m8ihods and prinurAes in the Charitses SORP.. - tnake judgernents and es￿mateS that are reasonable and PFudent". slate whether aP￿ICaNe accounting sland8r¢5 have been followed, subject to any materkql Oepartures dlsdosed and explained in Ihe finanu81 stsiemenls.. 8nd Pfepare the finantsal statements on the going conrEm basis unless it is Inappropnale lo presurne that the charity will continue in operatron. The Iwstee5 are responsible for keeping suffDent 3cwunting records that d15clo$e wilh reasonable accuracy al any lime Ihe finanual position of the charity and enable ihem to ensure that the finanual statements comply Ihe Charibes Act 2011. They are also responsitAe for safeguarding the assets of the charity and henct for taking Tea50nable steps forthe prevention and delectson of fraud and other itregularities. Auditor The auditor, Jeffteys Hénry LLP. Is dtemed to be reappointed under Section 487121 of Ihe CDmpanies Act 2(KJ6. Dl$clo$ure of infom)atlon to aut11tor Each of the trustees has confiFrned that Ihere is no SnlNmation ol whth they are aware whith 1$ relevant to Ihe avdil, PArt of which Ihe 8udil(K 1$ una%Yare. They have furthèr confim)ed ihal they have taken appropriate stsps 10 idenlfy tsuch relewarTrt informaiion and lo establish Ihal Ihe auditor is aware of such InfotTTSalion. The Tnjstees, report. induding the slrate9i¢ report, aP[￿0ved by Ihe Board ofTrustees. Mr Paras Dodhla Truslee Dated." 30 September 2022

JCD FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF JCD FOUNDATION

Opinion

We have audited the financial statements of JCD Foundation (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the trustees' assessment of the charity's ability to continue to adopt the going concern basis of accounting included, as part of our risk assessment, review of the charity's objectives, its model and related risks including where relevant the impact of the COVID-19 pandemic and Brexit, the requirements of the applicable financial reporting framework and the system of internal control. We evaluated the trustees’ assessment of the charity's ability to continue as a going concern, including challenging the underlying data and key assumptions used to make the assessment, and evaluated the trustees’ plans for future actions in relation to their going concern assessment.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

JCD FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF JCD FOUNDATION

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

JCD FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF JCD FOUNDATION

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued during October 2019 which is referred to in the extant regulations.

This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

JCD FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF JCD FOUNDATION

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sanjay Parmar (Senior Statutory Auditor) for and on behalf of Jeffreys Henry LLP 30 September 2022

Chartered Accountants Statutory Auditor

Finsgate 5 - 7 Cranwood Street London EC1V 9EE

Jeffreys Henry LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006

JCD FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
funds
Notes
£		 Unrestricted
funds
Notes
£		 Restricted Total Total
2020
£
4,750,000
24,245
4,774,245
2,227,627
2,546,618
funds funds 2021
£ £ £
Income from:
Donations and legacies
3		 3,093,750 - 3,093,750
Investments
4		 3,321 - 3,321
Total income 3,097,071 - 3,097,071
Expenditure on:
Charitable activities
5		 1,405,524 - 1,405,524
Net income for the year/
Net incoming resources 1,691,547 - 1,691,547
Other recognised gains and losses
Other gains or losses
9		 149 - 149 (492)
2,546,126
13,205,874
15,752,000
Net movement in funds 1,691,696 - 1,691,696
Fund balances at 1 January 2021
Fund balances at 31 December 2021
15,752,000 - 15,752,000
17,443,696 - 17,443,696

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

JCD FOUNDATION BALANCE SHEET AS A T 31 DECEAIBER 2021 2020 Current a￿ets Dtblors Cath at bank and in hand 10 t7.448. 15.756.775 17.449.216 15.757,070 CYEditorn.' *mounty falllng du•tAlthin no year 11 15.52 (5,0701 Net ojrrent 8SSets 17.443. 15,752,ClX) In¢c¥ne funds Unrestnded fvnds 17.443.698 15.752.riJo 17.443.6 15,752.OJ) Mr Paras D(xlhia Tr￿th￿

JCD FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
13
Investing activities		 2021 2021 2020 2020
£ £ £ £
3,321 1,688,857
3,321
-
1,692,178
15,756,775
17,448,953
-
-		 24,245
3,605,646
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Short term deposits included in current
asset investments
Bank overdrafts included in creditors
payable within one year
24,245
-
3,629,891
12,126,884
15,756,775
-
-

JCD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

JCD Foundation is a charity incorporated in England and Wales. The registered office is Suite 137, 28A Church Road, Stanmore, HA7 4AW.

1.1 Accounting convention

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)' and the Charities Act 2016. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

1.5 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

JCD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trustee's contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the trustees accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no significant accounting estimate or judgement undertaken by the trustees in the preparation of these accounts.

3 Donations and legacies

Donations
Giftaid refunds		 2021 2020
£ £
2,475,000 3,800,000
618,750 950,000
3,093,750 4,750,000
4
Investments
Interest receivable
2021 2020
£ £
3,321 24,245

JCD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Charitable activities

2021 2020
£ £
Postal fees 360 360
Accountancy and audit fees 5,520 5,040
Bank charges 468 705
6,348 6,105
Grant funding of activities (see note 6) 1,399,176 2,221,522
1,405,524 2,227,627

6 Grants payable

Grants to institutions: 2021 2020
£ £
Shree Halari Visha Oswal Adi Jin Sewa Trust 1,292,434 1,744,491
Arihant Charitable Trust - 477,031
Shree Halari Visha Oswal Shwetamber Murti Pujak Jain Sang 1,836 -
Ujjaini Senior Citizens 104,905 -
1,399,176 2,221,522

7 Trustees

None of the trustees (or any persons connected with them) receive any remuneration or benefits from the charity during the year.

8 Employees

There were no employees during the year.

9 Other gains or losses

Other gains or losses
2021 2020
£ £
Foreign exchange loss / (gains) (149) 492

JCD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

10
Debtors
Amounts falling due within one year:
Prepayments and accrued income
11
Creditors: amounts falling due within one year
2021 2020
£ £
263 295
Accruals and deferred income 2021 2020
£ £
5,520 5,070

12 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

During the accounting period the total amount of donations received from trustees amounted to £2,475,000 (2020 - £3,800,000 ). There were no conditions attached to any of these donations.

There were no other disclosable related party transactions during the year (2020 - none).

13
Cash generated from operations		 2021 2020
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Foreign exchange differences
Movements in working capital:
Decrease in debtors
Increase in creditors
Cash generated from operations		 £ £
1,691,547 2,546,618
(3,321) (24,245)
149 (492)
32 1,083,735
450 30
1,688,857 3,605,646
14
Analysis of changes in net funds
The charity had no debt during the year.