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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 10120963 (England and Wales) REGISTERED CHARITY NUMBER: 1171929

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2022

for

Shree Swaminarayan Mandir Bhuj (A Company Limited by Guarantee)

Parker Cavendish Chartered Accountants Registered Auditor

28 Church Road Stanmore Middlesex HA7 4XR

Shree Swaminarayan Mandir Bhuj

Contents of the Financial Statements for the Year Ended 31 March 2022

Page
Report of the Trustees 1 to 4
Report of the Independent Auditors 5 to 7
Statement of Financial Activities 8 to 9
Statement of Financial Position 10 to 12
Statement of Cash Flows 13
Notes to the Statement of Cash Flows 14
Notes to the Financial Statements 15 to 23

Shree Swaminarayan Mandir Bhuj (Registered number: 10120963)

Report of the Trustees for the Year Ended 31 March 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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

Objectives and aims

In accordance with the charity's objectives set out in the Articles of Associations of the charity, the charity has the following aims:

1) The advancement and propagation of the Hindu faith amongst its followers and others based upon the original teachings and principles of Lord Shree Swaminarayan as propounded by the Nar-Narayan Dev Gadi, Gujarat, India. 2)The advancement of Education

3)The advancement of such other exclusively charitable purposes under the Law of England and Wales as the Trustees shall determine at their discretion

Significant activities

Activities Review

The Trustees are pleased with the successful and smooth completion of the Charity's fourth full year and the level of voluntary donations received and progress it has made in supporting its Charitable activities, despite a year of lingering challenges with the COVID-19 pandemic.

School Project -

Notwithstanding the fact that COVID-19 essentially put a halt to any further meaningful progress, the trustees have decided at the time of signing these accounts, that the Harivan site will no longer be home to the school project. Alternative strategic uses were discussed by the Board of Directors together with consultations with Bhuj Mandir India with the site sold in December 2022.

Oldham New Temple Project -

Works for the new grand temple continue on schedule now with a grand opening planned for July 2022. The Board of Directors together with the directors of SSMO and Bhuj Mandir India continue to thank the large number of donors, devotees, volunteers and businesses who have provided considerable financial, material and labour donations towards the project.

Mahaprasad Project

The trustees have decided at the time of signing these accounts, that the Dalston Garden site will no longer be home to the Mahaprasad project and rather a new site is currently being negotiated on for lease (rather than own), from where the project will continue. The Directors expect this to be completed in the Summer of 2022 and works will then commence to renovate the building and proceed with the project. The Board of Directors together with consultations with Bhuj Mandir India have decided to dispose of the Dalston Gardens warehouse and at the timing of signing these accounts, the site was sold in February 2023.

UK Nationwide Youth Shibir Summer 2022

Following on the successful Daasatva shibir, planning for third major Shibir, scheduled for the Summer 2022 has commenced. The Directors expect to a broader outreach to youth members across to country to enjoy, learn and benefit from a spiritual yet fun and relaxing setting, in the presence of our spiritual saints from India.

Volunteers

The charity is reliant upon the contribution made by a number of volunteers in carrying out its activities. The trustees would like to thank all the volunteers for their hard work and dedication to the successful running of all the activities.

Public benefit

The charity is a public benefit entity. The trustees have complied with the duty in section 4 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission, including public benefit guidance. The charity has achieved its primary public benefit objectives by making progress with the construction of the new Oldham temple project which will the serve the wider community, the ongoing propagation of the Hindu faith with the existing Oldham temple and the support lent to other Charities with similar objectives e.g. New Zealand

FINANCIAL REVIEW

Financial position

The financial statements are set out on pages 8 to 23. The Statement of Financial Activities show net surplus for the year of review of £2,344,600 (2021: £2,422,727). The total reserves at the year-end stand at £7,070,842 (2021: 4,726,242) of which £128,586 (2021: £3,200) are held as restricted funds for Bhuj Temple.

1

Shree Swaminarayan Mandir Bhuj (Registered number: 10120963)

Report of the Trustees for the Year Ended 31 March 2022

FINANCIAL REVIEW

Principal funding sources

The principal fund sources for the Charity continue to be through general donations from the global devotee base of the Swaminarayan faith, particularly those of the Shree Nar-Narayan Dev Diocese.

It is the policy of the charity that unrestricted funds are built to meet and fulfil the loan obligations undertaken to facilitate the purchase of the land and buildings for all of the Charity's uses, be it Temples, Educational facilities and the provision of Prasadam. Additionally, funds which are restricted for specific purposes e.g. development of Oldham temple, or specific use for Bhuj Temple are accounted for as such under restricted funds.

Charity Bank Secured Loan facility

During the year, the Charity entered and negotiated a secured loan facility from the Charity Bank, to ensure backstop funding would be available for the Mahaprasad Project. The last two years have been impacted by covid-19 and restricted the movement of our Saints from India, who are crucial in gathering community support. Although this facility was secured for the financial year, it was not utilised.

Going concern

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. The Trustees believe that there are no going concern matters that would affect the Charity for the foreseeable future.

FUTURE PLANS

The Charity is currently focused primarily on two key near term objectives, that is the completion of the new Temple in Oldham and making progress with its MahaPrasad social venture. The Board of Directors together with consultations with our spiritual Head Temple, will formulate future growth plans, working alongside sister and umbrella temples to meet the needs of the UK and wider community. Once these strategic plans are at are more established stage, the Directors will disclose these publicly.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Shree Swaminarayan Mandir Bhuj (SSMB) is a Company limited by Guarantee and registered as a Charity with the Charity Commission. The Charity's affairs are governed by its Articles of Association, that were adopted on 13th April 2016 and revised on1st July 2021. The management of the Charity is undertaken by the Board of Trustees, which is responsible for its overall management and control. The Board will meet regularly to discuss and formulate policy which it implements. Further, the Board can establish various committees to manage particular projects, should they wish. The Charity shall have a minimum of 5 with no maximum, who shall hold office as directed by the Articles of Association.

Wider network

The subscriber of the Charity is Shree Swaminarayan Mandir, Inc, a Delaware non-profit, non-stock Corporation.

The charity is the sole member of the following charities registered in the United Kingdom: i) Shree Swaminarayan Mandir Oldham (Company Limited by Guarantee) ii) Shree Swaminarayan Vidyalay (Charitable application pending-Company Limited by Guarantee) The charity is the sole shareholder of the following Limited Companies registered in the United Kingdom: i) Mahaprasad Ltd (Company Limited by Shares)

Risk management

The trustees identify the major risks to which the Charity is exposed to each financial year when preparing and updating a strategic plan, in particular, those areas related to the operations and finances of the Charity. The Trustees then review any major risks which have been identified and establish systems to mitigate those risks. The Trustees continue to put in place appropriate internal controls and monitoring procedures to minimise financial risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

10120963 (England and Wales)

Registered Charity number

1171929

2

Shree Swaminarayan Mandir Bhuj (Registered number: 10120963)

Report of the Trustees for the Year Ended 31 March 2022

Registered office

502-504 Honeypot Lane Stanmore Middlesex HA7 1JR

Trustees

Mahant Swami Dharamanandan Dasji Swami Bhagwatjivan Dasji (resigned 24.7.21) Swami Devcharan Dasji (resigned 24.7.21) Swami Ghanshyamprasad Dasji (resigned 24.7.21) Bharat Jethalal Pindoria (resigned 24.7.21) Kanji Khimji Jesani Naran Bhimji Patel (resigned 24.7.21) Nandas Shamji Varsani (resigned 24.7.21) Hitesh Parbat Bhudia (appointed 24.7.21) Karsan Arjan Vaghani (appointed 24.7.21) Bhimji Ramji Hirani (appointed 24.7.21) Premji Shivji Halai (appointed 24.7.21) Parbat Premji Ruda (appointed 24.7.21) Mitesh Bhimji Patel (appointed 24.7.21)

Auditors

Parker Cavendish Chartered Accountants Registered Auditor 28 Church Road Stanmore Middlesex HA7 4XR

Bankers

National Westminister Bank Plic 135 Bishopsgate London EC2M 3UR

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Shree Swaminarayan Mandir Bhuj for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Parker Cavendish, will be proposed for re-appointment at the forthcoming Annual General Meeting.

3

Shrve Swamlnarayan Mandlr 8hul IReglBtered number. 101209631 R•port of th• Trust•o8 forthe Year Ended 31 March 2022 AUDITORS The 8uditor5, Parker Cavendish. will bo proposed for re-appointrnent 81 Ihg forth¢oming Annual General MeetiThJ. Approv8d by order ofthe board oftrustees on 30 March 2023 and signed on ts behalfby.. Mrtesh Bhimji Patel - Trustee

Report of the Independent Auditors to the Trustees of Shree Swaminarayan Mandir Bhuj

Opinion

We have audited the financial statements of Shree Swaminarayan Mandir Bhuj (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these 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.

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 charitable company'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 Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company'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 liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

5

Report of the Independent Auditors to the Trustees of Shree Swaminarayan Mandir Bhuj

Our 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

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 directors and other management 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.

6

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company'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 charitable company'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 charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Parker Cavendish Chartered Accountants Registered Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 28 Church Road Stanmore Middlesex HA7 4XR

30 March 2023

7

Shree Swaminarayan Mandir Bhuj

Statement of Financial Activities for the Year Ended 31 March 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
EXPENDITURE ON
Raising funds
3
Charitable activities
4
Community support
Governance costs
Donations
Depreciation
Others
Total
NET INCOME
Transfers between funds
18
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
Prior year adjustment
9
As restated
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
2,374,586
34,419
76,002
39,951
-
-
5,000
155,372
2,219,214
2,292,736
4,511,950
2,430,306
-
2,430,306
6,942,256		 Oldham
Mandir
restricted
£
-
-
-
-
-
-
-
-
-
(2,292,736)
(2,292,736)
3,127,969
(835,233)
2,292,736
-		 Other
restricted
£
145,477
-
-
-
-
-
20,091
20,091
125,386
-
125,386
3,200
-
3,200
128,586

The notes form part of these financial statements

8

Shree Swaminarayan Mandir Bhuj

Statement of Financial Activities for the Year Ended 31 March 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
EXPENDITURE ON
Raising funds
3
Charitable activities
4
Community support
Governance costs
Donations
Depreciation
Others
Total
NET INCOME
Transfers between funds
18
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
As previously reported
Prior year adjustment
9
As restated
TOTAL FUNDS CARRIED FORWARD		 Restricted
NZ
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2022
Total
funds
£
2,520,063
34,419
76,002
39,951
-
-
25,091
175,463
2,344,600
-
2,344,600
5,561,475
(835,233)
4,726,242
7,070,842		 2021
Total
funds
as restated
£
2,694,881
7,927
28,531
18,527
205,769
6,400
5,000
272,154
2,422,727
-
2,422,727
2,303,515
-
2,303,515
4,726,242

The notes form part of these financial statements

9

Shree Swaminarayan Mandir Bhuj (Registered number: 10120963)

Statement of Financial Position 31 March 2022

Notes
FIXED ASSETS
Tangible assets
10
Investments
Investments
11
Investment property
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS		 Unrestricted
fund
£
10,289,822
1
200,000
10,489,823
71,672
389,848
461,520
(3,521,187)
(3,059,667)
7,430,156
(487,900)
6,942,256		 Oldham
Mandir
restricted
£
-
-
-
-
-
-
-
-
-
-
-
-		 Other
restricted
£
-
-
-
-
-
128,586
128,586
-
128,586
128,586
-
128,586

The notes form part of these financial statements

10

continued...

Shree Swaminarayan Mandir Bhuj (Registered number: 10120963)

Statement of Financial Position - continued 31 March 2022

Notes
FIXED ASSETS
Tangible assets
10
Investments
Investments
11
Investment property
12
CURRENT ASSETS
Debtors
13
Cash at bank
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
18
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
NZ
£
-
-
-
-
-
-
-
-
-
-
-
-		 2022
Total
funds
£
10,289,822
1
200,000
10,489,823
71,672
518,434
590,106
(3,521,187)
(2,931,081)
7,558,742
(487,900)
7,070,842
6,942,256
128,586
7,070,842		 2021
Total
funds
as restated
£
7,703,542
1
300,000
8,003,543
27,312
327,155
354,467
(1,361,634)
(1,007,167)
6,996,376
(2,270,134)
4,726,242
2,430,306
2,295,936
4,726,242

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The notes form part of these financial statements

11

continued...

Shree Sw4mln•r•y•n M•ndlr Bhul {Reglstorgd numbv: 101209831 ststemnt of Flnanelal Posttlon . contlnu•d 31 Mareh 2022 These financdal statements have been prepared in acurdance wth the provisions applubla to chartsble ¢ompani&% subject to thè small companiès ragimè. Thtr fin8n¢ial $tatsmonts wore approvad by the Board of TN$lg&s and 8Uthori8sd for i$$ue on 30 March 2023 and were s￿ned on its behalf by.. Mitesh Bhirnji Patel- Trustee The n¢le$ fom part of th&s& financial statamènts 12

Shree Swaminarayan Mandir Bhuj

Statement of Cash Flows for the Year Ended 31 March 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Sale of investment property
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
£
2,357,559
2,357,559
(2,592,680)
(5,000)
100,000
(2,497,680)
622,500
(291,100)
331,400
191,279
327,155
518,434		 2021
as restated
£
2,552,623
2,552,623
(3,751,361)
(5,000)
100,000
(3,656,361)
1,212,522
-
1,212,522
108,784
218,371
327,155

The notes form part of these financial statements

13

Shree Swaminarayan Mandir Bhuj

Notes to the Statement of Cash Flows for the Year Ended 31 March 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operations
ANALYSIS OF CHANGES IN NET DEBT
At 1.4.21
£
Net cash
Cash at bank
327,155
327,155
Debt
Debts falling due within 1 year
(503,000)
Debts falling due after 1 year
(1,843,644)
(2,346,644)
Total
(2,019,489)		 2022
£
2,344,600
6,400
5,000
(14,360)
15,919
2,357,559
Cash flow
£
191,279
191,279
(1,114,644)
1,355,744
241,100
432,379		 2021
as restated
£
2,422,727
6,400
5,000
179,346
(60,850)
2,552,623
At 31.3.22
£
518,434
518,434
(1,617,644)
(487,900)
(2,105,544)
(1,587,110)

2. ANALYSIS OF CHANGES IN NET DEBT

The notes form part of these financial statements

14

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements for the Year Ended 31 March 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The Charity constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Preparation of consolidated financial statements

The financial statements contain information about Shree Swaminarayan Mandir Bhuj as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's 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.

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 must be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

15

continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold & long leasehold properties - land is not depreciated & Building 2% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure} for the year.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss

Taxation

The charity is exempt from corporation tax on its charitable activities.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments, cash at bank, debtors and creditors. Basic financial instruments are initially measured at transaction value and subsequently measured at their settlement value.

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.

Debtors

Other debtors are recognised at the settlement amount due and prepayments are recognised when costs have been expended which are in advance of the period to which they relate.

Creditors

Creditors are normally recognised at their settlement amount. Accruals are recognised when costs relating to the period have not yet been invoiced to, or paid by the charity.

Creditors Due after 1 year

The charity has outstanding loans from devotees and temples affiliated to Shree Swaminarayan Temple Bhuj India. These are repayable between 2 to 5 years with a provision that any lender may request a repayment with a 60 day notice. The trustees are of the opinion that even though this provision exists, they consider that these loans should be classified as due after 1 year as they do not consider repayment will be required before the expiry of the term. These loans are classified as public benefit concessionary loans and as such the public benefit concessionary loan exemptions have been applied. The loans are included at cost and are not adjusted or discounted.

Going concern

The Covid-19 pandemic and related lockdowns have created economic uncertainty for all organisations including the charity. In assessing the charity's ability to continue as a going concern the trustees have considered the circumstances of the charity, taking into account the impact of the pandemic and the terms of the loans from devotees and Temples affiliated to Shree Swaminarayan Temple Bhuj, India. The trustees have noted that while there have been some loan repayments since the year end, they have have been replaced by new loans and with a steady stream of donations and positive cashflow, there are no going concern issues that would affect the charity for the foreseeable future and accordingly the financial statements have been prepared on a going concern basis.

16

continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

2. DONATIONS AND LEGACIES

----- Start of picture text -----
|||||| |---|---|---|---|---| |2022|2021| |as restated| |£|£| |Donations|2,417,926|2,536,850| |Gift aid|102,137|158,031| |2,520,063|2,694,881| |3.|RAISING FUNDS| |Other trading activities| |2022|2021| |as restated| |£|£| |Support costs|34,419|7,927| |4.|CHARITABLE ACTIVITIES COSTS| |Support| |Direct|costs (see| |Costs|note 5)|Totals| |£|£|£| |Community support|72,372|3,630|76,002| |Governance costs|-|39,951|39,951| |Others|25,091|-|25,091| |97,463|43,581|141,044| |5.|SUPPORT COSTS| |Governance| |Finance|Other|costs|Totals| |£|£|£|£| |-|-| |Other trading activities|34,419|34,419| |-|-| |Community support|3,630|3,630| |Governance costs|-|-|39,951|39,951| |34,419|3,630|39,951|78,000| |6.|NET INCOME/(EXPENDITURE)|

----- End of picture text -----

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |as restated| |£|£| |Auditors' remuneration|7,200|6,300| |Depreciation - owned assets|6,400|6,400| |Deficit on disposal of fixed assets|5,000|5,000|

----- End of picture text -----

17

continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND
ENDOWMENTS FROM
Donations and legacies
EXPENDITURE ON
Raising funds
Charitable activities
Community support
Governance costs
Donations
Depreciation
Others
Total
NET
INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF
FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
fund
£
808,864
7,927
28,531
18,527
3,903
6,400
5,000
70,288
738,576
(94,927)
643,649
1,786,657
2,430,306		 Oldham
Mandir
restricted
£
1,689,778
-
-
-
-
-
-
-
1,689,778
94,927
1,784,705
508,031
2,292,736		 Other
restricted
£
50,891
-
-
-
56,518
-
-
56,518
(5,627)
-
(5,627)
8,827
3,200		 Restricted
NZ
£
145,348
-
-
-
145,348
-
-
145,348
-
-
-
-
-		 Total
funds
as restated
£
2,694,881
7,927
28,531
18,527
205,769
6,400
5,000
272,154
2,422,727
-
2,422,727
2,303,515
4,726,242

9. PRIOR YEAR ADJUSTMENT

Loans received by the charity from Shree Swaminaryan Mandir Oldham (SSMO), originally classified as donations received, have now been reclassified as creditors.

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continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

10. TANGIBLE FIXED ASSETS

COST
At 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
11.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 April 2021 and 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Freehold
& long
leasehold
properties
£
7,729,142
2,592,680
10,321,822
25,600
6,400
32,000
10,289,822
7,703,542
Shares in
group
undertakings
£
1
1
1

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

Mahaprasad Limited

Registered office: Nature of business: Dormant % Class of share: holding Ordinary 100 2022 2021 £ £ Aggregate capital and reserves 1 1

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continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

12. INVESTMENT PROPERTY

FAIR VALUE
At 1 April 2021
Disposals
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 £
300,000
(100,000)
200,000
200,000
300,000

The properties were valued by the trustees at 31 March 2022. There has been no material change in valuation from the previous year end date.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Amounts owed by group undertakings
Other debtors
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other loans (see note 16)
Amounts owed to group undertakings
Accruals and deferred income
Other Creditors
15.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Other loans (see note 16)
Other creditors
16.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Other loans
Amounts falling between one and two years:
Other loans - 1-2 years
Amounts falling due between two and five years:
Other loans - 2-5 years		 2022
£
30,000
41,672
71,672
2022
£
1,617,644
1,437,733
39,320
426,490
3,521,187
2022
£
487,900
-
487,900
2022
£
1,617,644
350,000
137,900		 2021
as restated
£
-
27,312
27,312
2021
as restated
£
503,000
835,233
23,401
-
1,361,634
2021
as restated
£
1,843,644
426,490
2,270,134
2021
as restated
£
503,000
-
1,843,644

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continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

16. LOANS - continued

These are public benefit concessionary loans from devotees and temples affiliated to Shree Swaminarayan Temple Bhuj India. They are interest free and are repayable on the various anniversary years after their issue as shown by the above classification. There is also a provision that any lender may request a repayment with a 60 day notice. The trustees are of the opinion that even though this provision exists, they consider that these loans should be classified as due after 1 year as they do not consider repayment will be required before the term expiry. Public benefit concessionary loan exemptions have been applied and are not adjusted or discounted.

Included above are loans amounting to £100,000 (2021: £200,000) secured on the charity's school property.

During the year the charity obtained a bank loan facility of £1,800,000, secured on the charity's properties. At the year end the amount borrowed on this facility was £Nil.

17. SECURED DEBTS

The following secured debts are included within creditors:

2022 2021
as restated
£ £
Other loans 100,000 200,000

The loans are secured on the charity's school property.

18. MOVEMENT IN FUNDS

At 1.4.21
£
Unrestricted funds
General fund
2,430,306
Restricted funds
Oldham Mandir restricted
3,127,969
Other restricted
3,200
3,131,169
TOTAL FUNDS
5,561,475
Net movement in funds, included in the above ar
Unrestricted funds
General fund
Restricted funds
Other restricted
TOTAL FUNDS		 Prior
year
adjustment
£
-
(835,233)
-
(835,233)
(835,233)
e as follows:		 Net
movement
in funds
£
2,219,214
-
125,386
125,386
2,344,600
Incoming
resources
£
2,374,586
145,477
2,520,063		 Transfers
between
funds
£
2,292,736
(2,292,736)
-
(2,292,736)
-
Resources
expended
£
(155,372)
(20,091)
(175,463)		 At
31.3.22
£
6,942,256
-
128,586
128,586
7,070,842
Movement
in funds
£
2,219,214
125,386
2,344,600

21

continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

18. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.4.20
£
Unrestricted funds
General fund
1,786,657
Restricted funds
Oldham Mandir restricted
508,031
Other restricted
8,827
516,858
TOTAL FUNDS
2,303,515
Comparative net movement in funds, included in the above are a		 Net
movement
in funds
£
738,576
1,689,778
(5,627)
1,684,151
2,422,727
s follows:		 Transfers
between
funds
£
(94,927)
94,927
-
94,927
-		 At
31.3.21
£
2,430,306
2,292,736
3,200
2,295,936
4,726,242
Unrestricted funds
General fund
Restricted funds
Oldham Mandir restricted
Other restricted
Restricted NZ
TOTAL FUNDS		 Incoming
resources
£
808,864
1,689,778
50,891
145,348
1,886,017
2,694,881		 Resources
expended
£
(70,288)
-
(56,518)
(145,348)
(201,866)
(272,154)		 Movement
in funds
£
738,576
1,689,778
(5,627)
-
1,684,151
2,422,727

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Oldham Mandir restricted
Other restricted
TOTAL FUNDS		 At 1.4.20
£
1,786,657
508,031
8,827
516,858
2,303,515		 Prior
year
adjustment
£
-
(835,233)
-
(835,233)
(835,233)		 Net
movement
in funds
£
2,957,790
1,689,778
119,759
1,809,537
4,767,327		 Transfers
between
funds
£
2,197,809
(2,197,809)
-
(2,197,809)
-		 At
31.3.22
£
6,942,256
(835,233)
128,586
(706,647)
6,235,609

22

continued...

Shree Swaminarayan Mandir Bhuj

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

18. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Oldham Mandir restricted
Other restricted
Restricted NZ
TOTAL FUNDS		 Incoming
resources
£
3,183,450
1,689,778
196,368
145,348
2,031,494
5,214,944		 Resources
expended
£
(225,660)
-
(76,609)
(145,348)
(221,957)
(447,617)		 Movement
in funds
£
2,957,790
1,689,778
119,759
-
1,809,537
4,767,327

19. CAPITAL COMMITMENTS

The charity had contracted with a developer to build a Mandir in Oldham. During the year, additional costs of £2,592,680 (2021: £2,623,881) were incurred under this contract.

20. RELATED PARTY DISCLOSURES

Related party transactions were as follows:

1) At the year end, the charity owed £20,000 (2021: £295,000) to a number of trustees and their connected parties in the form of interest free loans.

2) The chairman of the board of trustees of the charity is the head priest of Shree Swaminarayan Mandir in Bhuj, India. During the year a donation of £20,091 (2021: £56,517) was made to Shree Swaminarayan Mandir in Bhuj, India.

3) The charity lent its 100% owned subsidiary Mahaprasad Ltd £30,000. Mahaprasad is the food project SSMB will be commencing next year.

23